Excuse me, Dr. Tax, but that position makes little sense. First of all, let me say that this administration’s tax cuts and spending cuts have been and are grossly unfair. The tax cuts have favored the rich, and the spending cuts have reduced programs that help maintain economic security for Americans with low incomes. The present deficit-and the deficits projected for the future-are so large that they threaten our recovery from the recession. Here’s why: All deficits must be paid for by government borrowing, and because the government is borrowing so much money, there is less available for consumers and businesses. With government borrowing now threatening to increase, interest rates will rise and this will reduce spending for houses and cars and, in fact, spending on anything bought with a loan, as well as a business investment that must be financed by borrowing. In other words, some important private borrowing will be crowded out. Sometime next year, the recovery will therefore weaken, and we’ll move back into recession. Taxes should be raised, especially on the wealthy, and at least some government programs that help low-income people should be restored to the original funding levels. Major Point: Time Period: Assumptions: Theoretical Support: Values:
Excuse me, Dr. Tax, but that position makes little sense. First of all, let me say that this administration’s tax cuts and spending cuts have been and are grossly unfair. The tax cuts have favored the rich, and the spending cuts have reduced programs that help maintain economic security for Americans with low incomes. The present deficit-and the deficits projected for the future-are so large that they threaten our recovery from the recession. Here’s why: All deficits must be paid for by government borrowing, and because the government is borrowing so much money, there is less available for consumers and businesses. With government borrowing now threatening to increase, interest rates will rise and this will reduce spending for houses and cars and, in fact, spending on anything bought with a loan, as well as a business investment that must be financed by borrowing. In other words, some important private borrowing will be crowded out. Sometime next year, the recovery will therefore weaken, and we’ll move back into recession. Taxes should be raised, especially on the wealthy, and at least some government programs that help low-income people should be restored to the original funding levels.
Major Point:
Time Period:
Assumptions:
Theoretical Support:
Values:
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