do you recall when we last had a surplus in the economy?

Question

it is still the economy stupid, as one political organizer kept repeating a few years ago. keep that in mind. wars are expensive. we must live within a budget. we must find better solutions to this problem. we are hemorhaging our tax money beyond anything in world history. this cannot continue.

Answer 1

What kind of surplus?

Trade surplus?

That's been decades.

US federal government budget surplus?

We ran a few under Clinton. This was because Rubin refinanced maturing long bonds with then-lower-rate short bonds, thus reducing interest expense.

The yield curve is essentially flat now, so we cannot continue to do this.

Now, I agree, the answer to "WHY is it flat" is that short term rates are higher because they HAD to go higher because the federal government has borrowed too much, and it's kind of a vicious cycle - we've been net debtors for some time.

And the answer to that is to dramatically reduce federal spending.

I don't see either party attempting to do that.

Answer 2

The last REAL surplus was in 1969 (Nixon was president.) Before that 1956 and 1957 under Eisenhower. Before that 1947 and 1951 under Truman.

These are the only years since 1940 that the Federal debt went down. If we had an ACTUAL surplus in any given year, the federal debt would be paid down in that year. However, if you look at the budget history, you'll see that only in the 5 years listed above since 1940 has the debt actually been reduced.

There have been several years of faux surpluses, such as Clinton's last 3 years. In these years as in years past, the excess social security collections were added to the general accounting and some of that money was spent. However, the excess social security that is put into the budget as a surplus together with the excess that was actually spent are basically handled like IOU's to the federal government that have to be paid by future generations. They, therefore, add to the overall federal debt, and are not real surpluses.

Answer 3

If I am not mistaken, we ran deficits during World War II as well (I may be mistaken about that, so I'm not going to swear to it). It is not a crime to run a deficit for the sake of war. If the cause of the war is worthy, then win the war first and pay for it later.

The differences between Iraq and WWII are:
1. We were in a better financial position before the war.
2. The population was behind the war after Pearl Harbor.
3. There was no other solution to the problem other than unconditional surrendur.

Your basic premise is correct, though. I'd feel a lot better if someone told me how we were going to pay for this after we get out, whenever that is.

Answer 4

Sure do, the last president had us in the right direction with a surplus in the budget and had even begun to pay off the huge Reagan debt. But alas, along came Bush and he has screwed the American people ever since.

Answer 5

The President has virtually nothing to do with economic performance. The Dot-Com frenzy was in it's peak during the Billy boy admin and overnight millionaires were using 100s for TP.

That said, the lack of fiscal responsibility of the current administration does make me long for the, shudder, restraint of the Clinton Admin.

The bad news is that whomever is in office it will continue. The IOU's we are writing for SS, Medicare, Medicaid, etc etc etc will start coming due soon. The head of the GAO has been sounding this alarm for several years now, but nobody in the Republicrat party listens.

Answer 6

you cant totally blame the republicans for the final 8 years. Democrats have controlled congress because 2006 and did no longer workout there skill in any respect. they only enable bush shop happening so as that they might build greater hatred to the occasion. additionally no longer all Republicans could be blamed there are republicans who stood against there occasion for the 8 years of bush. additionally i in my view em getting ill of persons thinking Democrats have a bypass that proclaims they are in a position to do something they choose simply by final 8 years. "clinging onto the white southern racist vote...unhappy rather." remark became out of line. i used to stay in a southern state and on the city i lived in i did no longer meet every physique who became brazenly racist rubbed me as a racist guy or woman. additionally this had no longer something to do with your element your merely spouting argumentative statements.

Answer 7

yeah we had a surplus when Bush became a president, becaue Clinton and the democrats had managed the economy well. Bush started all these war spendings and put us into the biggest debt ever.

Answer 8

well Bills plan cut the hell out of the military budget to create a surplus I guess if people would like that then that could be done.

I honestly thing a reasonable balanced budget can be done without gutting a particular area of the budget. Once a budget is developed we need to get congress to stick to it.

Answer 9

A budget surplus simply means the government is ripping off taxpayers. We should never ever have this situation.

I do agree we shouldn't have a deficit, either.

Answer 10

When a Democrat named Bill Clinton was in charge. But it was a Democrat who was in charge. Keep that in mind.