Former President Clinton left the office with a decent national surplus, but shortly after, Former President Bush brought us back into a deficit.
In this article by Alan J. Auerbach and William G. Gale, they make the claim that the economy can be fixed by cutting spending and increasing taxes! I STRONGLY disagree. It is very evident that increased taxes will not help the American welfare. I agree that cutting spending will help, but increasing taxes will only hurt investors and consumers and net exporters…it would be an epic failure.
The true solution is to cut spending and to reduce taxes; pay off that deficit and get back on top. Sure taxes could help pay off the debt, but by taking more money from the people the government would slow the economy and reduce that likelihood of success. It is essential to allow money to remain out of the hands of the government.
History has shown that government intervention results in prolonged recessions or even a depression, but letting the market fix itself has shown much better results. Sometimes the market is up and sometimes the market is down, but left to fend for itself, it will always return to equilibrium.
For once the government should take this approach!
