OFF the CLIFF ??

Sun Dec 30, 2012

We are waiting to see what  kind of a deal  they will make .
But , the way this has been going, it is  better  to have NO DEAL and allow all Bush Cuts  to just expire automatically. 
It has been said that  We do not have a revenue problem, we have a SPENDING problem.

Oh sure  we have  both a Revenue problem  AND  a  Spending problem.

i was never able to  draw the graph here  , but it would be very revealing.

Some points :
1-  All spending  actually  GREASES  the ECONOMY  .so it is not a FUTILE thing
2- I would agree that  it is bad to borrow MONEY to  spend.
but let's  see .........is it not what  the BIG FOLKS have been telling STUDENTS  to do  .....borrow to go to College  and  yes  Also  to consumers  BORROW  to  buy stuff. 

So now we do not want Uncle Sam to borrow ?!

let us see 16 Trillion dollars Uncle SAM    .the debt of the richest super power

compare to  ONE TRILLION  of  Debt  for our STUDENTS .
seen side by side
the Debt of Uncle Sam looks  very small  , really  REALLY !

OK now that i have said my peice,  i will  agree that  we should not have BORROWED  to spend.
SO, here we go
WE  SHOULD Not have given so mauy  TAX  CUTS   so we could have more  revenue  to SPEND and INVEST in our INFRA STRUCTURE.
Because lets  face it    REDUCING  TOP Tax  Rate  from 91 %  to   35%  is really  MAJOR mistake.and hit to the revenue.

NOW  some will say OH but the revenue has remained about  the same  !!??
OH  i  will reply.......
let s see.  the REVENUE may  have remained about same >>>>>>>>>>>>>>>BUT 
the  COST  of GOV has gone UP  because  of  POPULATION GROWTH

that is  where we go back to the GRAPH  i wanted  to draw  to  make this point  CLEAR

you see in  1950  the  US Population was  151 Million    ............2010  it grew to  308 Million 

so the REVENUE  should have DOUBLED    too, so Fed Gov could  cater to the growing population is now more than DOUBLED.
BUT  due to the CONSTANT  tax cuts  from 91 % to  35 %    ie  almost cut to 1/3

CAN  YOU  IMAGINE ? 
now let's draw  that  graph  which will be  made of of 3 lines

1-  tax  cuts  from 91  %  to  35 %     from 1950   to   2010
2-  Revenue  .....get it from IRS....................ditto..........................
3-  Population  growth  .............................ditto..........................
NOW  you can see  
A GRAPH  is  worth  a THOUSAND  WORDS  !.