The mantra coming out of Washington DC; that the nation is deep in debt and taxes must go up while spending goes down. But note that the cuts are always to domestic social services.
Yesterday the IMF demanded that Social Security benefits be cut, even though working Americans have spent a lifetime paying into the system. We hear talk of cuts to Medicare and Medicaid, and we watch in dismay as our schools close, roads crumble, bridges collapse, coal mines cave in, and oil rigs explode through lack of oversight and maintenance.
Yet nary a word is mentioned regarding the real causes of our economic decline; which is the cost of maintaining the largest military in history (on credit) while US manufacturing continues to decline.
It is the classic rock and hard place. Government has borrowed itself into a black hold of debt (without the consent of the governed) and at the same time given tax incentives to corporations that made it attractive to move manufacturing to other countries, collapsing the very foundation of the nations ability to repay those loans.
It may have been politically expedient, but it is poor management to say the least.
The fact is that the US Government co9uld turn this economy around overnight. All they have to do is cut Federal taxes by 50% across the board and the US economy would light up like a Christmas tree. And those tax cuts could be paid for quiet easily by ending all these invasions of nations which have not tried to invade us, and closing down what Eisenhower termed, "The Military Industrial Complex." No other cuts to domestic programs would be required, and if there is a lesson to be learned from the Reagan years, it is that when there is a major tax cut to the people, tax revenues will increase as the economic activity improves.
A major tax increase at this moment will not improve the economy. Quite the contrary, a major tax increase at this time could well be the final straw that breaks the economic camel's back!