2007-07-26 02:32:18 · 4 answers · asked by Anonymous in Social Science ➔ Economics
Keynesean economics indicates that you create a defecit in the recession and pay it off in the better years. Since the government follows this mentality (somewhat) they feel ok in simply spending money they don't have.
The main goal of a politician is to come up with ideas that have immediate benefit (which gets them reelected), but is hard to actually assign true cost to or the true cost comes far in the future and can be "reduced" by inflation so they keep getting reelected. So over the years of doing this it has resulted in things being funded today that happened a long time ago and the government not understanding basic math (i.e. spend less than you take in). They are always overly optimistic about how much they will take in and it's a vicious cycle.
2007-07-26 04:08:19 · answer #1 · answered by Anonymous · 0⤊ 0⤋
government dumps monies into programs to bolster jobs,
they have to borrow the money (increase budget) and less taxes are coming in to pay for the budgets = increase deficits
2007-07-26 03:07:50 · answer #2 · answered by John K 2 · 0⤊ 0⤋
Because republicans are still voting tax breaks for the rich.
2007-07-26 02:34:51 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Entitlements. Congress cannot cut those.
They are carved in stone.
IRS receipts go down.
Congressmen do not know how to reduce spending.
Never have, never will.
2007-07-26 02:42:52 · answer #4 · answered by ed 7 · 0⤊ 1⤋