Our national debt...

[Anonymous]

I find it odd that we are not more concerned about this problem. Obama's policies have little to do with reducing debt. The interest on that debt is HUGE. Who will pay? We need to be honest with ourselves and the overconsumption syndrome that we have.

[jsteele]

The time to worry about the national debt is when the economy is doing well. Do some reading about Keynesian economics and you will understand why that is.

If we were to cut spending now, it would lead to greater job loss. Then, we would either have higher social service spending, or a lot of homeless, sick, and hungry people. Therefore, the government increases spending to create jobs, and spur economic growth. The real problem are the two wars that are really creating an financial drain while providing very little in return.

President Hoover decided to focus on the national debt at the expense of economic stimulus. Today, his name is mostly associated with Hoovervilles. Keep an eye on the states where spending is being radically cut. This creates a vicious cycle of less spending, fewer jobs, decreased tax base, lower state budget, additional cuts, rinse and repeat...

[Anonymous]

many don't accept Keynes views as the gospel, me included.

[Anonymous]

Jeff, I get your point, but maybe, Obama should be getting us ready for reality. This aren't going to be rosy for a while.

[jsteele]

Anonymous wrote:Jeff, I get your point, but maybe, Obama should be getting us ready for reality. This aren't going to be rosy for a while.

I agree that things are not going to be rosy for a while. However, there is something to be said for setting a positive mood. Obama should be expressing optimism, while putting in place policies to address the very real problems. The mortgage crisis is not even close to being over and we are probably about to experience national deja vu as foreclosures increase. Obama needs to walk a fine line of preparing us to confront the challenges while not causing everyone to hide in bomb shelters.

[Anonymous]

I'm not worried. This is the trend of the national debt:

Down under Carter
Up under Reagan
Down under Clinton
Up under Bush

Apparently the national debt is either cyclical or Republican. Either way, we are in good shape.

[Anonymous]

Anonymous wrote:I'm not worried. This is the trend of the national debt:

Down under Carter
Up under Reagan
Down under Clinton
Up under Bush

Apparently the national debt is either cyclical or Republican. Either way, we are in good shape.

have you seen the budget projects for the next 5 years? what are you smoking?

Clinton is to be commended, but I would think most of the credit goes to Newt & the fall of the Soviet Union. The end of the cold war paid huge dividends in cutting the defense budget. What we really need in this country is divided govt. It freezes things in many ways, but that paralysis tends to keep spending down.

[Anonymous]

Yes, this one is big problem. I am a bit concerned, b/c my spoiled kids, and those under 30 don't remember the 70's. Not that things were that bad, but we had to be more conservative with our money. We bought what we needed.

[Anonymous]

Anonymous wrote:I'm not worried. This is the trend of the national debt:

Down under Carter
Up under Reagan
Down under Clinton
Up under Bush

Apparently the national debt is either cyclical or Republican. Either way, we are in good shape.

Yes, way back when Reagan ran against Carter, I remember Reagan talking about this and being surprised and concerned. I didn't agree with Reagan on most issues but this seemed like one we should all worry about.

Then Reagan won the election and the debt mushroomed! He blamed it on Congress, of course. But it left me wondering, wtf? I hear about this from certain candidates but when they get into office their priorities change.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm not worried. This is the trend of the national debt:

Down under Carter
Up under Reagan
Down under Clinton
Up under Bush

Apparently the national debt is either cyclical or Republican. Either way, we are in good shape.

have you seen the budget projects for the next 5 years? what are you smoking?

Clinton is to be commended, but I would think most of the credit goes to Newt & the fall of the Soviet Union. The end of the cold war paid huge dividends in cutting the defense budget. What we really need in this country is divided govt. It freezes things in many ways, but that paralysis tends to keep spending down.

No, I'm not smoking anything. I admit that my answer was very off the cuff. But I am tired of budget hypocrisy on the part of the supposedly fiscally conservative party. In fact, they were the party that first said that deficits don't matter. They have used deficits as a weapon against the social programs of the Democrats. By causing deficits they hoped to dismantle the social programs that they hate so much. And they have increased spending in the past faster than anyone.

What has all this deficit spending done? It mushroomed our national debt. And so it is no different from what is going on now. It's just that the purpose is not something they are politically motivated to support. But a war (either cold or hot) and they are all over it. They just have no credibility whatsoever when it comes to fiscal responsibility. It's just where the money is spent.

Lastly, we should be more worried about the $1.5 trillion pumped into the economy by the Fed, none of which even counts and none of which people seem to care about. It's too technical for them to understand, so they don't bother to look at it.