Re: Greenspan concerned with weak dollar

From: AbsolutelyCertain (easily_at_entertained.not)
Date: 11/21/04 

Date: Sun, 21 Nov 2004 09:14:27 -0700

"W_B" <no_one@nowhere.net> wrote in message
news:bkl1q05j073ius51mo372cfkj0ghakt4j2@4ax.com...
> On Sun, 21 Nov 2004 02:34:01 -0800, Icono Clast <IClast@jps.net>
> wrote:
>
> >The only way I can imagine paying off the Bush/Republican-created
> >debt is through significant inflation which I expect we'll see quite
> >soon,
>
> Nope, you can grow the economy out of deficit.
> You cannot tax your way to prosperity.

A greatly oversimplified and misleading description.

You cannot "grow" the economy, it will grow or shrink as it pleases. It is
largely intractable, whether you are talking about the short, medium or long
term. If it were manageable and predictable, we'd all be rich as Cresus.

Taxation, on the other hand, is entirely under our control. We have the
power to tax and spend responsibly with an eye toward fiscal health and
appropriate debt management. We don't actually do it, but we have the
opportunity to do so. (Distracted by phony "values" issues and a useless
"war on terror," we are sitting here letting the worst wolves in history
clean out the henhouse while nobody pays attention. Pork barrel spending is
out of control, and the Republicans have invented new and more efficient
porcine giveaways. Taxation is shifted from progressive to regressive, and
the gummint spends like a drunken fishing boat crew.)

Whereas there is no opportunity to tax one's way to prosperity, either by
raising, or lowering, taxes.

A tumbling dollar and hideously rising national debt are going to do much
more damage to your prosperity than a dozen of those manipulative, useless
tax cuts are going to be able to undo. Even with the dollar's precipitous
decline, you can lie awake tonight knowing that the decline would be worse
without foreigners propping up the dollar. If they stop doing that, you're
screwed. Your little George Bush annual spiff is not even going to buy you
a cart full of groceries and tank of gas.

Relevant Pages

  • Re: OT: "Why You Should Be Screaming for Higher Taxes"
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  • Re: WAY OT: Gas-Gouging Greenspan
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  • The End of Prosperity
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