Is the projected 2004 deficit a bad thing.

[Epidemic]

We had a surplus able to pay for the war and the tax cut in 2000. Now we have a deficit of some 600 billion bucks and growing.

However the economy is growing as well. If the economy picks back up to 2000 levels will we still be bankrupt?

After all if business improves there are more people working, less people on public assistance, there are more surplus tax dollars again.

Why would one repeal the tax cut for a temporary glitch in the economy?

Typically after a dip things return to normal and then rise above former levels. This would make a greater surplus than in 2000.

Taking the tax cut money out of the economy does not seem prudent to me. It would seem as if it would remove capital money from business, spending money from consumers. This would not appear to be a real economy booster to me.

The deficit would appear to be similar to a business loan to get you over a downturn in the economy. As long as the prospects for the economy to improve are there taking a loan makes sense.

I am not sure what the democratic hopefuls wish to gain by taking the few thousand dollars back out of my paycheck. I have a household income of some 60,000 bucks, 4 dependents and the ~2000 tax cuts has helped me. I guess I am rich though.

[shahani]

AFAIK, some deficit is good. It is an indicator of fiscal expenditure by the Government. A huge surplus is the opposite. Shows the Government spending is keeping up with tax collections.

Results in recessionary conditions.

But there is a balance. Either extreme is bad.

To my mind, a small deficit is ideal.

But I don't know economics theory so well.

[Epidemic]

I agree with the either extreme is bad. I also concede that the deficit is larger than I would like it. The long and short of it is that this is borrowing in the tough times.

911 + (911*recession) = deficit

Tax cuts are an attempt (Rightly or wrongly conceived) to give the economy needed capital to jump start.

What are the democrats proposing. Dean complete repeal of tax cut. Now that removes capital from economy (which by the way is showing all the signs of recovering)

Geee thanks dean take my 2000 dollars back and make sure that I can spend less at my local grocery store. Maybe I my lack of cash will help the grocery owner to fire some surplus people to make ends meet.

The best way to reign in any costs is to work hard to eliminate government waste.

BTW buy War technology stock (I see a big future in it when we take over europe)

[shahani]

Take over Europe?

You figgures Bush is gonna win 2004 ?

That's a big big assumption, even for you, Duke.