Spending Cuts, Not Tax Increases

[Mike]

NABE
Published: Monday, 22 Aug 2011 | 8:09 AM
AP
The majority of economists surveyed by the National Association for Business Economics believe that the federal deficit should be reduced only or primarily through spending cuts.


The survey out Monday found that 56 percent of the NABE members surveyed felt that way, while 37 percent said they favor equal parts spending cuts and tax increases. The remaining 7 percent believe it should be done only or mostly through tax increases.

As for how to reduce the deficit, nearly 40 percent said the best way would be to contain Medicare and Medicaid costs. Nearly a quarter recommended overhauling the tax system and simplifying tax rates and exemptions. About 15 percent said the government should enact tough spending caps and cut discretionary spending.

The latest survey by the NABE was conducted in the two weeks ending Aug. 2, the day that the Senate passed and President Obama signed legislation to cut spending by more than $2 trillion and raise the nation's debt ceiling.

The agreement managed to avert a potential default, but Standard & Poor's downgraded U.S. credit from AAA to AA+, citing the political wrangling over the deal as a reason.

According to the survey of 250 economists who are members of NABE, nearly 49 percent of those responding said the country's fiscal policy should be more restrictive, while nearly 37 percent said they believe the government should do more to stimulate the economy. The remainder said fiscal policy should remain the same.


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At the same time, more than 70 percent of the people that responded said they expect U.S. fiscal policy to be more restrictive over the next two years.

In the area of U.S. monetary policy, more than half of the economists surveyed said they thought it was "about right," while over a third said it was "too stimulative." Less than 6 percent said it was "too restrictive." The rest did not know or didn't give an opinion.

The survey was taken before the Federal Reserve announcement that it expects to keep short-term interest rates at their current low levels into 2013.

At the same time, the respondents were nearly evenly split on whether U.S. monetary policy will stay the same or be more restrictive in the future, with those options getting about 42 percent of responses each. Nearly 15 percent of those surveyed say they believe monetary policy will be more stimulative down the road.

 

[Lonecowboy]

The majority of economists surveyed by the National Association for Business Economics believe that the federal deficit should be reduced only or primarily through spending cuts. The survey out Monday found that 56 percent of the NABE members surveyed felt that way, while 37 percent said they favor equal parts spending cuts and tax increases. The remaining 7 percent believe it should be done only or mostly through tax increases.

Ironically, the people that are trying to relabel our Republic as a democracy will be the first to disregard this information. :???:

 

[Tex]

NABE
Published: Monday, 22 Aug 2011 | 8:09 AM
AP
The majority of economists surveyed by the National Association for Business Economics believe that the federal deficit should be reduced only or primarily through spending cuts.


The survey out Monday found that 56 percent of the NABE members surveyed felt that way, while 37 percent said they favor equal parts spending cuts and tax increases. The remaining 7 percent believe it should be done only or mostly through tax increases.

As for how to reduce the deficit, nearly 40 percent said the best way would be to contain Medicare and Medicaid costs. Nearly a quarter recommended overhauling the tax system and simplifying tax rates and exemptions. About 15 percent said the government should enact tough spending caps and cut discretionary spending.

The latest survey by the NABE was conducted in the two weeks ending Aug. 2, the day that the Senate passed and President Obama signed legislation to cut spending by more than $2 trillion and raise the nation's debt ceiling.

The agreement managed to avert a potential default, but Standard & Poor's downgraded U.S. credit from AAA to AA+, citing the political wrangling over the deal as a reason.

According to the survey of 250 economists who are members of NABE, nearly 49 percent of those responding said the country's fiscal policy should be more restrictive, while nearly 37 percent said they believe the government should do more to stimulate the economy. The remainder said fiscal policy should remain the same.


RELATED LINKS
Current DateTime: 05:10:36 22 Aug 2011
LinksList Documentid: 44226154
Markets Watching FedIs This Lehman Again?Goldman Sachs Slashes Its US GDP Forecast Again
At the same time, more than 70 percent of the people that responded said they expect U.S. fiscal policy to be more restrictive over the next two years.

In the area of U.S. monetary policy, more than half of the economists surveyed said they thought it was "about right," while over a third said it was "too stimulative." Less than 6 percent said it was "too restrictive." The rest did not know or didn't give an opinion.

The survey was taken before the Federal Reserve announcement that it expects to keep short-term interest rates at their current low levels into 2013.

At the same time, the respondents were nearly evenly split on whether U.S. monetary policy will stay the same or be more restrictive in the future, with those options getting about 42 percent of responses each. Nearly 15 percent of those surveyed say they believe monetary policy will be more stimulative down the road.

We should have cuts. There is no question about that. I have spoken about particular programs that are being run based on politics of buy the electorate instead of good economic policies with the market in mind. One of them is the ethanol program. There definitely should be cuts. We should cut corporate welfare first. Then we should look means test every other program. The public purse should not be used to enrich those already rich and that includes the tax policy.

We leverage the economy up when we tax investment less than income and exclude huge amounts of income by the rich from taxes like the SS tax. It is the opposite problem of making everyone get insurance to make insurance work.

These things will not happen because money rules in our nation instead of us following the rule of law. We probably won't cut where we need to and the very rich can move their money too easily to avoid paying their fair share. Why haven't we seen more convictions on the money that was put in the Swiss bank accounts to avoid paying taxes here in the U.S.?

One must remember the pool of economists that were surveyed. They are largely on the corporate payroll. It was a very bright economist, Phil Gramm, who helped us get into this economic mess in the first place. His wife was busy helping IBP avoid their market scam on cattle producers as well as Enron.



Tex

 

[okfarmer]

NABE
Published: Monday, 22 Aug 2011 | 8:09 AM
AP
The majority of economists surveyed by the National Association for Business Economics believe that the federal deficit should be reduced only or primarily through spending cuts.


The survey out Monday found that 56 percent of the NABE members surveyed felt that way, while 37 percent said they favor equal parts spending cuts and tax increases. The remaining 7 percent believe it should be done only or mostly through tax increases.

As for how to reduce the deficit, nearly 40 percent said the best way would be to contain Medicare and Medicaid costs. Nearly a quarter recommended overhauling the tax system and simplifying tax rates and exemptions. About 15 percent said the government should enact tough spending caps and cut discretionary spending.

The latest survey by the NABE was conducted in the two weeks ending Aug. 2, the day that the Senate passed and President Obama signed legislation to cut spending by more than $2 trillion and raise the nation's debt ceiling.

The agreement managed to avert a potential default, but Standard & Poor's downgraded U.S. credit from AAA to AA+, citing the political wrangling over the deal as a reason.

According to the survey of 250 economists who are members of NABE, nearly 49 percent of those responding said the country's fiscal policy should be more restrictive, while nearly 37 percent said they believe the government should do more to stimulate the economy. The remainder said fiscal policy should remain the same.


RELATED LINKS
Current DateTime: 05:10:36 22 Aug 2011
LinksList Documentid: 44226154
Markets Watching FedIs This Lehman Again?Goldman Sachs Slashes Its US GDP Forecast Again
At the same time, more than 70 percent of the people that responded said they expect U.S. fiscal policy to be more restrictive over the next two years.

In the area of U.S. monetary policy, more than half of the economists surveyed said they thought it was "about right," while over a third said it was "too stimulative." Less than 6 percent said it was "too restrictive." The rest did not know or didn't give an opinion.

The survey was taken before the Federal Reserve announcement that it expects to keep short-term interest rates at their current low levels into 2013.

At the same time, the respondents were nearly evenly split on whether U.S. monetary policy will stay the same or be more restrictive in the future, with those options getting about 42 percent of responses each. Nearly 15 percent of those surveyed say they believe monetary policy will be more stimulative down the road.

We should have cuts. There is no question about that.

Tex

There, fixed it for you.