The Boston Tea Party supports reducing the size,scope and power of government at all levels and on all issues,and opposes increasing the size,scope and power of government at any level, for any purpose
Wednesday, June 15, 2011
Cut spending and Live within your means, just like average Americans
Quote of the Day: "History clearly shows the government that stimulates the best, taxes, spends, and intrudes the least. In particular, the lesson from 1945-47 is that a sharp reduction in government spending frees up assets for productive use and leads to renewed growth." - Economists Jason E. Taylor and Richard K. Vedder
I understand the concern you have about making the drastic spending cuts necessary to balance the budget and maintain the current debt ceiling.
However, the last time the national debt was this high relative to Gross Domestic Product (GDP) was at the end of World War II.
Economists Jason E. Taylor and Richard K. Vedder tell us what a Democratic-controlled White House and Congress did to the budget after World War II. They . . . .(http://www.cato.org/pubs/policy_report/v32n3/cpr32n3-1.html)
* slashed spending by more than 50% in one year
* removed ten million servicemen and one million civilian employees from the federal payroll
* lifted wartime economic controls, AS WELL AS many New Deal era regulations
Instead of a new Depression, the opposite occurred . . .
* The economy grew by 10% in two years
* Unemployment was under 4.5% in the first three postwar years
* By 1947, budget surpluses reached 6% of GDP, and the U.S. started paying down the debt
This isn't surprising. It makes economic sense . . .
* More money is available for capital investment and economic growth, when government spends, taxes, and borrows less.
* It is less expensive to hire new workers, when regulations are reduced.
Please do now, what Congress did then:
1. End the wars, cancel defense contracts, and bring the troops home.
2. Cut spending to balance the budget, AND lift regulations that strangle the economy.
Follow the 1946, Truman formula, and America will adapt quickly to a more free and more prosperous reality.
Cap the debt!