As @Darsan54 correctly and excellently notes, the real solution to recession is Keynesian market economics updated for the industrial age — deficit spending to stimulate the economy out of recession, and budget surpluses accumulated in times of prosperity.
In the last 50+ years, ONLY DEMOCRATS have achieved budget surpluses in the good years — LBJ in FY 1969 (passed in February 1968) and Bill Clinton in each of his last four years in office, under his REIGO (reinventing government) plan passed in 1993 without a single Republican vote (they predicted budget deficits; the opposite occurred), that led to the then-record deficits Clinton inherited from Reagan/Bush I to be reduced each of Clinton’s first four years, moving into positive [surplus] territory that increased the surplus each of his last four years.
The last time a Republican had a balanced or surplus budget was LIBERAL Republican Eisenhower (who Fred Koch, father of the Koch brothers Charles and David called a communist) in the 1950’s, with a top marginal tax rate of more than 90% on the highest income bracket, and one of the most prosperous eras of industrial and middle class prosperity in all of American history.
You do understand how things work, don’t you, Steve?
The social security I pay is going to retired folks right now. My SS benefits will be paid by my son. The problem is there won’t be enough kids to pay what you and I will need.
It is the same with other programs as well. Countries are not pay as you go. They borrow from the future. It has been that way for decades.
With regard to environmental issues, the national debt and other policies, the Republican attitude hails from the nonsensical assertion Archie Bunker once said “What have future generations ever done for me?”
The republican solution to the question above is to never have a surplus. Let’s keep running into deficit, and make it bigger. It makes the question moot.
What surplus? CalPERS and CalSTRS alone have unfunded liabilities in excess of $225 Billion. Between state and local liabilities the figure exceeds $330 Billion. Some put the total unfunded liability at close to $1 TRILLION.
The California surplus is an accounting farce. The Dem legislature has underfunded public employee pension funds for decades. You could drop that “surplus” into the pension funds and barely make a ripple.
Really? Trump puts us into a 2 Trillion dollar a Year whole wile the economy is good, and you want to ask California what they will do IF things go south?
Darsan54 Premium Member over 5 years ago
Spending the “surplus” when the recession comes will help end it. Read The General Theory of Employment, Interest and Money – Keynes
DD Wiz Premium Member over 5 years ago
As @Darsan54 correctly and excellently notes, the real solution to recession is Keynesian market economics updated for the industrial age — deficit spending to stimulate the economy out of recession, and budget surpluses accumulated in times of prosperity.
In the last 50+ years, ONLY DEMOCRATS have achieved budget surpluses in the good years — LBJ in FY 1969 (passed in February 1968) and Bill Clinton in each of his last four years in office, under his REIGO (reinventing government) plan passed in 1993 without a single Republican vote (they predicted budget deficits; the opposite occurred), that led to the then-record deficits Clinton inherited from Reagan/Bush I to be reduced each of Clinton’s first four years, moving into positive [surplus] territory that increased the surplus each of his last four years.
The last time a Republican had a balanced or surplus budget was LIBERAL Republican Eisenhower (who Fred Koch, father of the Koch brothers Charles and David called a communist) in the 1950’s, with a top marginal tax rate of more than 90% on the highest income bracket, and one of the most prosperous eras of industrial and middle class prosperity in all of American history.
Durak Premium Member over 5 years ago
You do understand how things work, don’t you, Steve?
The social security I pay is going to retired folks right now. My SS benefits will be paid by my son. The problem is there won’t be enough kids to pay what you and I will need.
It is the same with other programs as well. Countries are not pay as you go. They borrow from the future. It has been that way for decades.
syzygy47 over 5 years ago
With regard to environmental issues, the national debt and other policies, the Republican attitude hails from the nonsensical assertion Archie Bunker once said “What have future generations ever done for me?”
NobodyAwesome Premium Member over 5 years ago
The republican solution to the question above is to never have a surplus. Let’s keep running into deficit, and make it bigger. It makes the question moot.
Alberta Oil Premium Member over 5 years ago
Not just the recession that eats up the surplus.. the amount spent on military foolishness has brought many a country to its knees
BubbleTape Premium Member over 5 years ago
“don’t worry, son, we only have recessions after republicans have been in office.”
Andylit Premium Member over 5 years ago
What surplus? CalPERS and CalSTRS alone have unfunded liabilities in excess of $225 Billion. Between state and local liabilities the figure exceeds $330 Billion. Some put the total unfunded liability at close to $1 TRILLION.
The California surplus is an accounting farce. The Dem legislature has underfunded public employee pension funds for decades. You could drop that “surplus” into the pension funds and barely make a ripple.
JHayes over 5 years ago
Really? Trump puts us into a 2 Trillion dollar a Year whole wile the economy is good, and you want to ask California what they will do IF things go south?