Here’s a really good post on the deficit wars - & the myth of economic “recovery.” [via Corrente] For about 20 years now, I’ve been warning people that the continuing rise in home values was unsustainable - & bad for the economy. I can’t stress this enough: Shelter is shelter, & not an investment. Speculating in residential real estate on the basis
…There’s some truth to this ‘class war’ theory, but it’s really a bunch of bullshit.
Take a look at a chart of the US national debt over the past 50 years or so. In 1980, the angle of the debt line steepens - the magnitude of the annual deficit started to increase. This was in spite of the so-called ‘Reagan Revolution’, which was supposed to turn deficits into surpluses and actually pay down the national debt. No Republican talks about this anymore, but that was the primary goal of Reagan’s fiscal and monetary policies. They achieved the opposite.
Reagan tripled the national debt during an economic boom, when it should have fallen - quite a feat. Bush 43 and his ‘fiscally conservative’ majority congress doubled it again. During the next 30-odd years to the end of the Bush/Cheney administration, GDP increased 5 times (in nominal terms, before inflation is taken into account), while the national debt went up 11 times.
Think about that. For almost 30 years, under mostly conservative presidents and congresses,…
Read this article:
The Real Battle: Deficit Reduction is Class War | Crooks and
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