Thursday, December 13, 2018

Eliminated the kanosian crowding out

Brad adopted he deficit reduction plan:


The Clinton administration of 1993-2001 sold its 1993 deficit-reduction reconciliation bill as a phased-in five-year plan to boost American economic growth and American incomes. By raising taxes and by cutting government spending relative to the then-projected baseline—half of the cuts coming from the military, half of the cuts coming from the social insurance programs—Clinton sought to redirect 1%-point of GDP's worth of funds each year for five consecutive years from funding the government debt to funding productive private investment.

Nice job, actually.  What was the plot?  Cut government spending, raise taxes, reduce deficit results in less crowding out.   None of that "deficits don't matter but we owe it to ourselves anyaway" stuff.

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