Political and Economic Theory Thread

[TheMonkey]

Fiscal responsibility is about sustainability over time, not necessarily austerity. Fiscal responsibility means spending discipline (something our nation lacks) and efficiency rather than austerity. In addition to spending wisely, it’s about supporting economic conditions that strengthen the overall fiscal picture.

Although significantly reducing the $39T debt is laudable, the goal should be strongly curtailing or eliminating future deficits. We cannot continue the current growth of interest. Respectfully, printing away debt is not an answer.

Exactly. We should reduce the budget deficit by bringing government revenues closer to expenditures. By reducing the amount of borrowing required, we can demonstrate fiscal discipline to creditors and credit rating agencies and make borrowing easier and cheaper as a result.

 

[Stillwater Townie]

Exactly. We should reduce the budget deficit by bringing government revenues closer to expenditures. By reducing the amount of borrowing required, we can demonstrate fiscal discipline to creditors and credit rating agencies and make borrowing easier and cheaper as a result.

Dream on. We're at the point now where the U. S. Treasury has to borrow money to pay interest on the debt, a bad sign of things to come. As U. S. Treasury bonds become more unappealing to buy to foreign countries; the interest rate will have to keep rising until we're plunged into a depression with inflation. Interest rate and unemployment rate could both be at around 20%.

Dream on also with auditing the Dept. of Defense or War to uncover million$ of waste. I don't think Musk was allowed in the Pentagon.

 

[steross]

Fiscal responsibility is about sustainability over time, not necessarily austerity. Fiscal responsibility means spending discipline (something our nation lacks) and efficiency rather than austerity.

If fiscal responsibility means spending discipline, and austerity means "policies that aim to reduce government budget deficits through spending cuts, tax increases, or a combination of both" are you differentiating by saying that you don't want the tax increases that can be part of austerity? Do you disagree with that definition of austerity? Because, I can't see how it is any different unless "spending discipline" does not mean "spending cuts."

 

[JTOSU]

If fiscal responsibility means spending discipline, and austerity means "policies that aim to reduce government budget deficits through spending cuts, tax increases, or a combination of both" are you differentiating by saying that you don't want the tax increases that can be part of austerity? Do you disagree with that definition of austerity? Because, I can't see how it is any different unless "spending discipline" does not mean "spending cuts."

Fiscal responsibility simply means managing government finances in a sustainable way over time (keeping debt manageable relative to economic growth). Yes, spending cuts and revenue increases (closing loopholes) are a part of this. But we also need policies that grow the economy (which increase tax revenues naturally). Fiscal responsibility is about managing debt relative to economic growth, not just cutting spending. Policies that support growth can improve government finances more effectively than austerity, especially during weaker economic periods. Not arguing that austerity could be a tool, but certainly not a requirement.

* Yes, I am certainly against tax increases that just increase the tax burden on the small population that already overwhelming fund the government (unless it is eliminating tax loopholes like carried interest)
* Suggesting we can print away debt is not a sustainable idea. Printing money doesn't make debt disappear, it just changes how it is paid. It further weakens the currency, likely drives additional inflation, and creates broader economic instability.
* Having a $1T surplus would be phenomenal, but that does not need to be the goal -- we need to stop spiraling debt growth

 

[steross]

Fiscal responsibility simply means managing government finances in a sustainable way over time (keeping debt manageable relative to economic growth). Yes, spending cuts and revenue increases (closing loopholes) are a part of this. But we also need policies that grow the economy (which increase tax revenues naturally). Fiscal responsibility is about managing debt relative to economic growth, not just cutting spending. Policies that support growth can improve government finances more effectively than austerity, especially during weaker economic periods. Not arguing that austerity could be a tool, but certainly not a requirement.

* Yes, I am certainly against tax increases that just increase the tax burden on the small population that already overwhelming fund the government (unless it is eliminating tax loopholes like carried interest)
* Suggesting we can print away debt is not a sustainable idea. Printing money doesn't make debt disappear, it just changes how it is paid. It further weakens the currency, likely drives additional inflation, and creates broader economic instability.
* Having a $1T surplus would be phenomenal, but that does not need to be the goal -- we need to stop spiraling debt growth

The differentiation you are making then is that austerity means the cuts are not sustainable and are done with no consideration of growth?

TBH, I have always considered spending cuts/responsibility and austerity to mean essentially the same thing. Sort of like pro-life and anti-abortion or trader and speculator. Basically the same but the nuance is in if you want the thing to sound good or not.