World

Reducing the deficit is part 1 of 2 major steps

by YankeeJim | January 31, 2012 at 07:52 am

39 views | 0 Recommendations | 1 comment

Revenue production

Understanding that there are constraints on America’s capacity to spend is step 1. The hard step remains, and that is determining how to grow the economy sufficiently to provide revenues for government services and obligations and capital for private sector investment. The private sector is the engine and government is a conductor.

Reengineering the economic model and adjusting the capitalist system to ensure fairness is the work at hand.

“U.S. deficit to top $1 trillion for 4th year in a row

The federal budget deficit will top $1 trillion for a fourth straight year, congressional budget analysts said Tuesday in a report that predicts a nearly $1.1 trillion gap between government spending and tax collections for 2012.

That figure is the smallest – both in nominal terms and as a percentage of the economy – since the Great Recession began taking a heavy toll on the federal budget in 2009.

The nonpartisan Congressional Budget Office projected that the deficit would continue to fall, dropping sharply in 2013 and throughout the remainder of the decade if policymakers follow through with major changes in both tax policy and government spending now on the books.

Read more at:
http://www.washingtonpost.com/...mKweQ_story.html”