[FoRK] "A budget deal that reduced the deficit"

Jeff Bone jbone at place.org
Fri Jun 25 17:25:07 PDT 2010





On Jun 25, 2010, at 17:42, Russell Turpin <russell.turpin at gmail.com>  
wrote:

> This seems relevant to recent discussions about how serious the tea  
> parties are about budget matters:

First one foul, one stipulation then a few matters of historical fact.

First the foul:  this has absolutely zero to do with TP discussion or  
any seriousness therein re budgetary matters.

Stipulation:  there is an iceberg's chance in hell of reigning in the  
deficit without increasing the federal top line. Ditto spending, but  
yeah. The quibble is how to do those things. Keynes doesn't win no  
matter how nostalgic the revisionist historians may wax.

Now the historical facts, conveniently discarded by the article.  Yes,  
numerous tax *increases* under Reagan / Bush I.  All on the heals of  
the largest tax REDUCTION and capital-friendly restructuring in  
history, undoing decades of stagnation under Keynesian demand-side  
policies.

The surpluses enjoyed late in the decade came largely from the twin  
windfalls of the birth and maturation of the computer and Internet  
industries and their ubiquitous impact on productivity, riding the  
funding wave of the capital-friendly policies of that first massive  
restructuring under Reagan, followed by its renewal (after a Bush I  
lapse back to pre-voodoo economics that induced a recession). Then the  
class of '94 swept in and finished cleaning up a few fiscal matters  
like welfare reform that Clinton had the good sense to see through.  
And that's all she wrote.

Next?  Perhaps Russell would like to demonstrate that the solar cycle  
has something to do with "the" TP, and cite some astrological  
reference in doing so.

jb



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