This report coming from Wells Capital Management shows that the Republicans are using this recession and current deficit as political tools to further their agenda to eliminate the social contract created by our Grandparents.
In this report Wells Capital states that Federal spending growth is slower today than it was from 1965 through 1985 and is consistent with growth from 1985 through 1995. This same report also shows that we have been having budget deficits 86% of the time since 1965. Interestingly the GOP loves to invoke the Kennedy tax cuts which passed the Senate in 1964 as a sensible way to decrease the deficit through economic expansion. They try to present to the public that a lower tax rate increases business expansion, thus this would increase revenue into the treasury. This obviously didn’t happen. Over the last 46 years, according to this study, our nation has had a federal deficit, for 39.5 years.
Wells Capital States this,
“….the blowout deficit of the last few years was not due to a surge in government spending, but rather is the result of the worst recession in the post-war era. That is, like most post-war deficits, the contemporary deficit is predominantly “cyclical.”’ “….As has been typical throughout the post-war era, the current deficit is primarily the result of weak government receipt growth. Indeed, in the last recession, government receipts declined by more than during any post-war recession.
This analysis actually reinforces what I have reported here on PoiticusUSA in the past. America needs to grow our economy in order to eliminate the deficit, there is no need for draconian cuts to our social contract, as the regressives in the tea party and the Republican party would like you to believe.
The big government spending Obama is nothing more than a figment of the Republican Party’s illusion to persuade the public into accepting cuts to Medicare, Medicaid and other programs that help the least fortunate in this great country.
Here is the CNBC video:
Image: truthful politics