Economic theory Not all that Specific

We are now talking cutting the budget. I think I heard infrastructure is a major target.

My econ theory just hacking about tells me we as a nation fail economically very long term if we cut spending right now.

Why would cutting the budget be a good idea right now? Yes put in a few specific targets but what happens to the entire economy if we cut the budget? And more importantly does the US economy fail to grow quickly for the rest of this decade because we cut the budget? Or would the economy grow faster and why?

Your opinions?

YMMV, but Michigan was choking spending on education, infrastructure, and mental health for nearly 40 years, while throwing the money at the “JCs” instead, when one party had a gerrymandered secure grip on the legislature. In 1980, Michigan had 19 Congressional seats. Now, Michigan has 13 Congressional seats. That tells me that all that “supply side” policy produced below average growth.



I just finished reading Krugmann’s book. He ridicules the deficit hawks.

The idea that the US has unlimited borrowing capacity. Is a bit unsettling. I don’t think paying off the national debt is required but some moderation is required.

If you can’t raise taxes, what else is there.

Asking the wealthy to pay their fair share is reasonable. But even better funding for the IRS seems to be under fire.

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I think the public can be leveraged against such cuts but I am not sure the powers that be will leverage the public.