In article ,
SMS wrote:



The key to deficit reduction is to increase revenue. Sadly, there are
not a lot of cuts left to be made that will not have negative long-term
consequences. Tax rates are now at historic lows. If we want to continue
down the road to becoming a third world country we can continue to
decrease revenue and defund infrastructure and education. Meanwhile
countries in Europe and Asia are going the other direction. We had a
good run.


Actually the keys to deficit reduction are (1) getting the economy
back on track with "revenue increases" are guaranteed not to do and (2)
stop or curtail the INCREASES in spending. During most of the Great
Expansion over the last 20 years or so, revenues grew around 2-3% per
year. At the same time, spending grew around 4% per year. Studies have
shown in the past (don't know for sure if we have passed the point of no
return on this) that if we merely kept spending increases to inflation,
we would have balanced the budget in between 10 and 15 years, depending
on the economic growth assumptions.

--
"Even I realized that money was to politicians what the ecalyptus tree is to koala bears: food, water, shelter and something to crap on."
---PJ O'Rourke