Democratic and Liberal political analysis and commentary

When I was your age I would have agreed with you.

In the late 80s, and especially the early 90s, the "debt crises" was considered very real. The real problem with debt is the effect of federal borrowing crowding out private capital in global capital markets.

The crowd out effect, in turn, is supposed to cause an otherwise unnatural increae in interest rates.

Bubba's first two budgets (passed by a Democrat Congress) projected enormous deficits into the mid 21st Century.

Then the GOP won the 94 elections. On the heels of a booming economy the GOP balanced the budget in four years and five years out produced huge surpleses.

Then, the 2000-2001 recession Brother Bill left Brother Dubya, 9.11 and the corporate scandals, together with unabashed liberal like spending by the less disciplined Republican congresses that governed from 03-07 like the Democrats they ousted ten years before, and the two worst natural disasters in American history caused Fed spending to spike so fast that it offset the record federal revenues that Dubya's fiscal and monetary policies, and the boom years of 03-07, produced.

The lesson, fed spending usually sucks, is always less efficient than private sectore spending, but ultimately has little affect on the larger economoy.

Short term stimuli like suspending the gas tax and dumping billions into taxpayers pockets can turbocharge the economy short term without having any significant effect on the debt.

C'mon Claire, I'm your huckleberry so let's play for real. Share your response.