The Truth About Deficit Spending
It's tempting to place partisan blame on why the U.S. has such persistent federal deficits, which results in a large amount of federal debt. Some say it's the Bush era tax cuts, while others blame Obama. But the problem with deficit spending really began around 1970. It's not a new phenomenon, and deficits have persisted during good economic times, as well as bad.
A big issue is that our budget deficits during recent decades have been caused primarily by health care costs and an aging population. In fact, research from the St. Louis Fed demonstrates that Medicare spending, and to a lesser extent, Medicaid, are the primary culprits in creating our deficits. And we can see that raising the highest marginal rates on high-income earners might not solve the issue. Let's explore....565 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.