November 23, 2005

Beggar Republicans and Deficit Spending

Before the Republicans managed to gain control back in the late 70's , they were known for quite a few things. First, they were known as war hawks. Second, they were anti-affirmative action (and some, against other races in general). Finally, they were anti-social service spending. But most importantly of all, Republicans were known to be fiscally responsible, wanting to cut so called "wasteful" spending by the government.

Those days are over. Today, after a takeover of the House, Senate, and Presidency since 2002, we see that the Republicans, when it comes to fiscal policy, have no fucking clue what they're talking about. For years, Republicans have been decrying "tax and spend" liberals. Now they've shown that they don't "tax" and "spend", they just spend other people's money. For years now, the Republicans have been driving up a deficit, a deficit that we will have to pay later. By we, I mean my generation and following generations.

And they have the balls to say that it doesn't matter! That's the worst part. It's as if they failed basic economics entirely, or lack the competency to even hold office. According to them, the deficit doesn't matter because:

1.) Everyone loves America's economy
2.) Reducing it would hurt our economy
3.) It's needed for lower taxes

Each one of those is total bullshit, and here's why:

1.) Everyone loves America's economy

They do, but only right now. Other countries' economies are on the rise, and at the rate some of them are going, America has the distinct chance of not being the only superpowerful market in the world. It's only because our economy is extremely powerful that foreign companies invest heavily in it. Without these investments, we wouldn't be able to finance our debt at all and our economy would crash. Here's where two problems come it. First, current foreign investment, at best, can only finance a deficit at half of our current rate. Secondly, if another country arises that comes even close to rivally the US's economic strength, we're screwed. No other nation is racking up nearly as huge a debt as the US currently is, and therefore would carry much less risk. Foreign investments would suddenly go towards that other country, and we sink. We have to prepare for this possiblity.

2.) Reducing it would hurt our economy

So would not reducing it. As the debt gets larger, interest rates have to go higher in order for the US Treasury to better finance this massive debt. These interest rates will rise higher and higher, making loans harder on the average American.

3.) It's needed for lower taxes

The current share of the national debt for each person is over $27,000. For every single member of the US, that is the amount, from young babies to the oldest senior citizens. An average family of 4 owes over $100,000 in debt to foreign nations, thanks to the spending of the Republicans. That's a lot of money that will have to be paid in taxes.

Haven't the beggar Republicans done enough? Can't they find a way to finance their fiscal policy? It's time to find people who truly are fiscal responsible and don't just claim to be.

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