If the soundness of federal outlays has no relationship to receipts, why do we even need taxes? We could simply borrow all of the money, including that used to service the debt, indefinitely with no worry. So there is a relationship, which I’m guessing is the willingness of creditors to continue extending loans, which they do by purchasing US Treasury bonds. And poor countries, the ones where child poverty can mean death before reaching school age, can’t play the budget game the US does. So that willingness must rest on America’s underlying economic output, along with other factors such as military strength, possession of the world’s reserve currency, and history of paying its bills on time.That last is what the bozos who’ve taken Speaker McCarthy hostage might ruin this year. But looking past the immediate issue to watch outlays rise from $525 million in 1901 through 23 recessions to their latest $6.27 trillion, an astonishing ten thousand-fold hike even if the value of a dollar has changed quite a bit, I noticed they usually remained in step with receipts, except for a few periods like the 1930s and WWII. Until about 1970, that is. And except for Clinton’s couple of surpluses, the gap has only grown ever since, in absolute terms and percentage-wise.But we can’t have a real discussion about managing our budget because of the internecine politicking. While I’m open-minded, the Covid era has left things out of hand, I think. Taxes & fiscal restraint both?

If the soundness of federal outlays has no relationship to receipts, why do we even need taxes? We could simply borrow all of the money, including that used to service the debt, indefinitely with no worry. So there is a relationship, which I’m guessing is the willingness of creditors to continue extending loans, which they do by purchasing US Treasury bonds. And poor countries, the ones where child poverty can mean death before reaching school age, can’t play the budget game the US does. So that willingness must rest on America’s underlying economic output, along with other factors such as military strength, possession of the world’s reserve currency, and history of paying its bills on time.That last is what the bozos who’ve taken Speaker McCarthy hostage might ruin this year. But looking past the immediate issue to watch outlays rise from $525 million in 1901 through 23 recessions to their latest $6.27 trillion, an astonishing ten thousand-fold hike even if the value of a dollar has changed quite a bit, I noticed they usually remained in step with receipts, except for a few periods like the 1930s and WWII. Until about 1970, that is. And except for Clinton’s couple of surpluses, the gap has only grown ever since, in absolute terms and percentage-wise.But we can’t have a real discussion about managing our budget because of the internecine politicking. While I’m open-minded, the Covid era has left things out of hand, I think. Taxes & fiscal restraint both?

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