question about the National Debt for all of you economist types....

[hfojvt]

8. first of all you said deficit when you should have said debt

The debt is the sum total.

The deficit is just for the current year.

As for Bill Clinton reducing the deficit. Well, in some ways, very large ways, it was the Republican Congress that did that, by capping spending growth.

Then, they turned around and passed tax cuts for the rich and tax increases for the poor. Yes, Bill Clinton too. http://www.democraticunderground.com/?com=view_post&forum=1002&pid=2665533

As for whether it is good or bad. Well, that depends. Take the Bush recession (please) Republican idiots did not want to have a stimulus bill because that would (gasp) increase the debt. Except that not having a stimulus bill would be far more damaging to our economy and society than the little bit of debt would be.

Same thing with deficits. Sorry, but the economy has cycles. When things get bad, well the deficit goes up. Logically, when unemployment is higher a) you have fewer people paying taxes and b) you have more people needing a safety net. Same as the stimulus. To try to balance the budget at that point would not only be inhumane, it would damage the economy in the long run.

Now as for household. Again, first the Government simply is NOT a household. It is more like a corporation and corporations generally increase their debt every year (and in theory the debt matches the value of their assets. There is much talk about the debt of the Government, but less talk about assets. Things like highways, planes, national parks, etc.

Second, yes we do run households this way, Many households will buy a home. When I bought my home in 2001 I took on $32,000 in debt. I did that because that investment was going to help me in the long run.

Finally, for all that talk above, I am NOT necessarily against reducing the debt. Dishonest Republican politicians though, they always CLAIM to care about the debt. Consider the Ryan budget. It is supposed to reduce the debt. Yet the one thing it specifies - tax cuts for the rich. Basic math says that a balanced budget comes from revenue greater than expenses. Well, with only brief small reversals, it has been tax cut, tax cut, tax cut since about 1981. It's like saying the household needs to balance the budget, but then we decide to stop charging rent to our rich uncle who lives on the top floor of our house. When you do that (I mean when Ryan and Republicans (and many Democrats)) do that, but then cry about the debt and deficit, they are NOT to be taken seriously. They are NOT honest brokers.