Why is it that under Reagan, Bush I and II we go into deficit situations?

Answer 1

government spending requires tax dollars but republicans tend to favor tax cuts. they still need to spend to run the gov't, pay for wars, military, etc. then outsourcing funnels money from the american economy overseas and you have rising trade debts. importing more than you export and less tax revenue equals massive deficits and cuts in gov't programs that help the poor and minorites.

Answer 2

Traditionally, the Republicans represent the military aspect of the military/industrial complex...don't forget that weapon production is a private, profit-based industry with powerful lobbies...and it's not you and I who are the consumers, but governments because you are not dealing in cars and fridges and washing machines!

So far over $310 BILLION public money has been spent on the war in Iraq alone...this is money out of education, old age security, medicare, etc. And who's paying for the deficits? Mainly the ordinary American citizen, because the government represents the very rich who end up contributing less and less as the their taxes are reduced...Huge deficit usually means higher bank interest, which means higher mortgage interest rates for ordinary people buying houses, autos, etc. After all, the very wealthy are the ones who have the money to lend out, and they'll get better returns...do you get the picture?!

Answer 3

The economic status of our country reflects the changes put in by the previous administration. We had a recession under Reagan because of the crappy things Carter did. Then we had good economy under Clinton because of what Reagan and Bush Sr. did. When George W. was elected, we were already into a recession because of the crap Clinton did. Bush is still trying to undo the damage Clinton did to our economy. And when the next president is elected, the economy will be awesome, because of the things Bush is doing now.

The economy is cyclic and it will always have it's ups and downs. But always, what's happening right now is a direct reflection of what happened 4 years ago.

Answer 4

The basic problem is no opposition between the Executive Branch and the Legislative Branch. IE: no checks and balances on the budget.
The same think would likely happen if we had the Democratic party in charge of those 2 branches.

T_Jania above is wrong. The consumer economy is about "Feeling" not about Fact. How can you blame Clinton for Bush's downturn, How can you credit Clinton's boon for the Regan tax policy?

Answer 5

You do understand that congress writes the spending charges precise? All dems below reagan and surpluses below clinton got here from a rebylican congress. sure the 1st 6 years of bush replaced into all republican however the final 2 ubder democrat congress had the optimal spending. All presidents and congresses have spent too plenty the two written or signed off on in compromise. How approximately we stop the infantile blame activity and paintings on solutions..... no longer Yahoo solutions!!

Answer 6

I was told once that all the problems that you see under a President's term was actually cause by the President before them. Because the previous Presidents decision/choice or whatever did can not really take effect until a few years (the next President's term) and then it is considered their fault. I have no ideal if it is true but you may want to look at what the Presidents did before the one you are asking about.

Answer 7

Clinton is given credit for the results of the Reagan policies. Clinton voted AGAINST the 104th congressional reform bill-and he was eventually "forced" to sign the bill (3rd time)--IT WAS THE REPUBLICAN congress who is entitled to the credit for the economic prosperity during the Clinton administration.

Answer 8

They preach fiscal responsibility but do not have a clue as how to obtain it. Supply side economics has never worked and has always ended in recession. If it wasn't for the illegal war in Iraq we would be completely in the dump right now as we was with Reagan and Bush l

Answer 9

he suppose to have won on the fact that he believed in small government but the peoples have forgotten about that of bush he have spent more than the last two president in office bush just might bankrupt this country. every thing he have said or promised was just a dam lie.

Answer 10

Why is it Liberals want to increase taxes to 50% and dump all the money in social programs...