Quote:
Originally posted by Spanky
Dems keep referring to this act was so significant. During this year we increased spending but increased taxes even more. After the Republican took control we were able to get rid of the rest of the deficits by not raising taxes (and even cutting some). After the 1993 budget act long term interest rates stayed high (I think they even increased). It was only after a Repub congress did long term interest rates come down and growth really picked up thereby balancing the budget.
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I am not an economist, but isn't the Federal Reserve's policy to let interest rates float up when the economy is good and to bring them down when the economy requires stimulus?
I sense that everyone is looking for a formula that says their party does the right thing and the other party the wrong thing. I do not think that is the case; I would challenge anyone to try to defend economic policies at any level during the Ford and Carter administrations. Both administrations seemed to have little control over the economy and little ability to do much right, and congress was no better, on either side of the aisle.
