This Plan Proposes to Balance the Federal Budget in 6 Years –
Earlier in May, Justin Bogie (referenced in 6/24/19 HFL) wrote about “Preserving American Freedom,” a comprehensive fiscal 2020 budget proposal produced by the Republican Study Committee. He says the proposal “would rein in Washington’s spending addiction by prioritizing core constitutional functions.”
Bogie says the proposal “would balance the budget in six years and start paying down the national debt.” Read Bogie’s review of this proposal, in The Daily Caller, HERE.
Brookings Writer: Myths About Federal Debt Leave No Answer –
In late April the Washington Post published a piece by Brookings Institute senior fellow William Gale entitled “Five myths about federal debt”. Mr. Gale notes that recently the US budget deficit has experienced a nearly 40% growth, comparing year-over-year.
He reports that the “Federal debt — the accumulation of past deficits — reached its highest level ever relative to the economy, with the exception of a few years around World War II. And that’s before financial shortfalls for Social Security and Medicare occur and send debt to unprecedented levels.”
Mr. Gale warns about five myths that he believes are “muddling the discussion”about the problem. He identifies what he believes are myths, identifies prominent proponents of the myths, and then debunks them. His list:
MYTH #1: Debt is harmless if it’s issued in a nation’s own currency.
MYTH #2: Low interest rates mean debt doesn’t matter.
MYTH #3: We should balance the budget and pay off the debt.
(Editor’s Note: The writer’s logic here is certainly fodder for a challenge.)
MYTH #4: We can grow our way out of the debt.
MYTH #5: There’s an easy solution to the debt.
The sad conclusion from Mr. Gale’s list of myths (if his logic is correct) is that there is no hope for finding a way out of America’s fiscal madness. The editors of this newsletter believe there is a way… and it is found in some variation of the opposite of his conclusions under his Myths #3 and #4. Read his piece HERE.