Quote:
Originally posted by Captain
I would point out that most economists would define a balanced budget to include very slight deficits and surpluses, and that a 0.3% deficit or a .5% deficit (which is what you are labeling a "deficit" in the 1960s) is a very different thing than a 3.5% deficit (last years).
While we are noting that military expenses do go up when at war, I would also not that there was certainly a "peace dividend" in the 1990s that contributed to deficit reduction. Forgive me if I am venturing into Captain Obvious territory again!
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In a growing economy you should consistently reduce the deficit without raising taxes. Since 1960, as far as I can see on that chart, the only congress that was able to pull this off was the Repub congress of the late 1990s. Every other congress has not been able to sustain significant and continuous deficit reduction during times of growth (especially without raising taxes).
If the economy continues to grow this decade, and we continue to decrease the deficits, that will be twice for the Republican congress.
