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The different between now and 1930 is that we were a creditor nation (like China), now we are a debtor nation. So in order to pay off our debt + interest, we h
by chailatte 16y ago
The different between now and 1930 is that we were a creditor nation (like China), now we are a debtor nation. So in order to pay off our debt + interest, we have to hike up our taxes (or print dollars) to keep up, thereby suppressing innovation.
- lkrubner 16y agoThe period when the USA experienced the greatest growth relative to other nations was the period from 1893 to 1929. When that era started the USA had a trade deficit and there was major public outcry about the amount of debt that the USA owed to Britain. But the deficit and the debt didn't hold back the USA.
- nl 16y agoSo in order to pay off our debt + interest, we have to hike up our taxes (or print dollars) to keep up, thereby suppressing innovation. Well.. no. You wouldn't know it from the current political dialog, but deficit budgets aren't uncommon. The most common way to get rid of them isn't to raise taxes or print money - instead it's to grow the economy(!) The increased tax base leads to increased tax receipts which pays the deficit. (This isn't an argument for cutting tax, though - especially the way most tax cuts are structured at the moment. They are - IMHO - stupid policy on both economic and social grounds)