The American Spectator

Robert Stacy McCain| 12.1.08 @ 11:26AM

Actually, Jim, I started writing a column over the weekend about the Keynesian resurgence. But I didn't finish it. Too depressing. Maybe tomorrow.

Bob| 12.1.08 @ 3:11PM

You shouldn't be talking about Keynes, but Laffer and supply side theory. In 2005, the CBO (under Republican control) did an updated analysis of earlier tax cuts and showed that the decrease in tax rates did not increase tax revenues. In fact, it resulted in increased deficits (as is fairly obvious). You need to look at tax revenues as a percentage of GDP because of rising tide analogies. Most non-economist pundits use total receipts which is misleading as the rise is due to growth in the economy and not tax rates. A segmented analysis is warranted in this case as the CBO properly accomplished.

This year, Laffer, in an interview, said that the rate of taxation at present was not achieving increased revenues and warned against further tax cuts. All economists understand that this is a maximization analysis that requires real data points and and experimentalist approach.

Most voters are so devoid of economic theory that they buy into the junk theory that lower taxes are always better. The fact is there is an optimum point and that currently the rate is too low which is causing the deficit to rise at a far greater rate than necessary.

I hope that both of you have studied economics of you are going to comment on it.

Richard T. Brown Jr.| 12.1.08 @ 5:29PM

These arguments are INVALID - the problem is not taxes IT'S SPENDING - The government has expanded it's role far beyond those set up in the CONSTITUTION. Cut the unwarranted spending and pass those social responsibilities back where they belong, with the STATES, the Family, and the religious communities. Big government causes many of the problems it aims to correct. Perhaps Dawin had it right and the WEAK simply get what they deserve. RTB2-CONSERVATIVE and loving it!

Bob| 12.2.08 @ 7:35AM

Richard, you are doing the anti-intellectual thing here are not looking at facts. Here's the budget breakdown:

Medicare/Medicaid -- 33%
Social Security -- 21%
Defense -- 20%
Interest -- 8%
Discretionary -- 18%

Medicare/SS/Interest are the fastest growing segments of the federal budget. Bush and the Republican Congress have almost doubled the interest expense over the past 8 years. In that sense, balanced budgets are good. Perhaps you think we should get rid of Medicare and Social security and leave that up to the churches. Perhaps the federal government should not be responsible for things like the FDA, FTC, infrastructure, etc. Perhaps politicians should not take salaries. The fact is that you and others are right that spending should be constrained as much as possible, but are oversimplistic in thinking that will even come close to solving our problem. The basic issue is that we are spending more than we take in. If we had a balanced budget requirement, your taxes would be increased by 15-20% at a minimum. You cannot argue for the maintenance of medicare, social security, and defense spending and also call for reduced taxes.

RTB2| 12.2.08 @ 10:31PM

Intellectual thinking is what GOT US INTO THIS MESS. Dirt poor simplicity will be needed to clean it up. Perhaps a CHAPTER 11 style reorganizartion is called for.

As you have so eloquently stated I must agree with you BUT I will still hold true to my outlandish statements and shall use your numbers as the basis for the argument.

?Which of these categories of spending would remain if we were to seek approval for them in the CONSTITUTION - the blueprint for our 200+ years of successful society?

I contend that it is the deviation from what is Constitutionally authorized that has us in MANY of these messes we as a NATION are currently overwhelmed by.

A Federal budget that spends 20% on our National Defense and allows much of the remaining 80% to be dispersed to what I contend are possibly Constitutionally Misappropriated Priorities is a guaranteed path to failure, misery and self destruction.

I contend that the UNITED STATES OF AMERICA was a better place before the selfish excesses of the "Baby Boomer" / 60's Hippies / "Liberal / Progressive Agenda" was forced down the throats of the rest of us. Long live Ozzy and Harriet!

2-worker households, one parent families and the values associated with these compomises on the successful Norman Rockwell / LIFE magazine version of America have reaped FAILURE AND MISERY across this nation.

The Heartland doesn't mind paying taxes - we DESPISE paying taxes and seeing them wasted or mis-directed to ill-conceived do-good social policies.

The law of unexpected consequences is CONSTANT. Bitch and moan about pollution and jobs disappear. Save the environment, AND DESTROY AMERICA's MANUFACTURING SECTOR. In turn strengthening our enemies and our competition. NOT IN MY NEIGHBORHOOD - Not on my block, not here, not that way, NO NO NO- sound familiar?

Oh what fun, as I yak away on my high speed internet connection and contemplate THE NEXT PHASE of a personal budget cutting process as required by the reality that I have but one income, a loving spouse and two beautiful girls enrolled in Expensive Private Colleges. ( I think that we are going to eliminate my land-lines and go entirely cell phone and eMail. One dedicated fax line and a full service "Home Phone" are now an excess that CAN be eliminated. ) Cable television is next on the list of cutbacks being considered.