The radicals, supported by unions, are now impregnating our youngest so they will grow up hating America.
The Hoover Institution Monthly Briefing on the Economy
FEDERAL DEBT
Welcome to the Hoover Institution’s monthly newsletter on the economy. This month we are focusing on our growing federal debt. In late May, President Biden released his 2022 fiscal year budget. The administration’s proposal would increase federal deficits by an additional $1.4 trillion over ten years. That borrowing would be on top of current annual deficits exceeding $1 trillion. What are the consequences of all this borrowing, and what can be done about it?
The federal government has been running annual federal deficits nonstop for over two decades. During the Great Recession and now during the COVID-19 pandemic, deficits exceeded 10 percent of GDP. And even in good economic years, the government spent far more than it collected in taxes. The result? Federal debt held by the public now exceeds 100 percent of GDP. But not everyone is concerned. Some argue that as long as economic growth rates are greater than the interest rate on the federal debt, then over time the debt burden will shrink as a share of the economy. Economist John Cochrane disagrees. In his paper “r<g,” Cochrane notes that among other problems with this theory is that it assumes a one-time debt increase. That situation doesn’t apply to the US fiscal picture:
The US has exponentially growing debt to GDP, not gently declining debt to GDP that can be pushed to decline from a higher level. We do not start a “one-time” fiscal expansion with zero current and planned primary surpluses, as the scenario posits. And the spending plans our government is now proposing are hardly a one-time expansion. New social programs and a century’s worth of climate subsidies are a new perpetual deficit, not a one-time expansion.
Growing deficits appear to be a permanent fixture in the federal budget, and policy makers—including members of the current administration—seem unwilling to restrain spending in the future. Economist Michael Boskin takes a critical look at President Biden’s spending plans. While the temporary spending policies in the midst of the COVID-19 pandemic were likely justified, Boskin argues, the administration’s newer proposed spending plans are less defensible. Biden’s proposal includes tax increases to finance a portion of the spending, but many of these tax hikes are unlikely to pass Congress, and the ones that might be enacted are unlikely to raise the revenue that the administration expects. In short, Biden’s spending would lead to significantly higher borrowing. Boskin highlights several potential consequences to this borrowing, including lower growth rates, higher inflation, and rising interest rates. It will also leave future policy makers with fewer options to respond effectively to national emergencies:
Sooner or later, there will be another crisis. If the US government continues to expand its debt now, lack of fiscal capacity could hamstring its policy responses when the economy really needs the support. In the meantime, the advanced-economy debt deluge is making it harder for poor countries with limited debt capacity to respond adequately to the COVID-19 crisis, worsening the human tragedy.
Is there an alternative to all this borrowing? Economist John Taylor thinks so. In Congressional testimony delivered months before the onset of the COVID-19 pandemic, Taylor argued that a policy that slowly reduces government expenditures would increase economic growth relative to current projections. Importantly, Taylor’s proposed spending changes would not decrease spending levels; instead, his proposal would only slow how fast spending is projected to grow. Taylor finds:
With the Congressional Budget Office’s currently projected increase in the deficit and federal debt in the United States, this reexamination implies the need for a credible fiscal consolidation strategy. Under such a strategy spending still grows, but at a slower rate than GDP at least for a while, thereby reducing both spending as a share of GDP and debt as a share of GDP compared with current projections of the Congressional Budget Office (CBO). Such a fiscal strategy would greatly benefit the American economy. It would also reduce the risk of the debt spiraling up much faster than projected by the CBO.
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This is What Happens when You Release Criminals back onto the Streets in Seattle
UNPRECIDENTED! Capitol Police Moving Into your City To Hunt Down “Threats”
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Breaking: US Women’s Soccer Team DISRESPECTS Veteran, American Flag in Disgusting Gameday Display
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Bill Barr re-emerges, spotlights total corruption of the Department of Justice
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This will be the last memo I will send until we return from Tybee so I thought I would take time to respond to those who are sympathetic to the Palestinians and who believe palestine was a nation they created.
When the British Left Occupied Israel, various Arab nations decided to eliminate the just birthed State of Israel which had been created by the U.N. on Nov. 29, 1947.
The Arabs told the "Palestinians" living in the new Israeli Nation to get out of Dodge and return after the Arabs won. The Arab nations lost so that created a problem for some 700,000 "Palestinians" who left. The Israelis urged the "Palestinians" living in the new state to remain and some 100,000 did.
There never was a nation called "Palestine," they never had a currency, a military or documents declaring they were a nation, no flag but Arafat announced those he governed were living in Palestine and so it came to be. Arafat could have gotten a job on Madison Avenue.
The territory which is described in the old testament including Jerusalem , which is mentioned 659 times and zero in the Quran, became populated by Hebrews, according to scholars around 1250 when Jewish Tribes began to form a nation of sorts. The Ottoman's eventually conquered the nation.
These are historical, researched and documented facts but facts no longer are credible evidence of anything on college campuses today. What drives pro-Palestinian empathy are lies about the Palestinians being underdogs. If they are it is because they have rejected the opportunity to have a nation at every turn either due to lousy land avarice leadership seeking to shakedown the West, religious ardor over wiping out Israel or some other reason.
Netanyahu said if Palestinians laid down their arms there would be peace and if Israelis laid down their arms there would be total Israeli annihilation. Gold Meir put is in a more motherly way when she said if Palestinians loved their children as much as Israelis there would be peace.
While I am at it, let's destroy another myth with facts, ie. unlike Jimmy Carter's false claim, Israel is not an apartheid nation. Israel, which is a little over 8017 sq miles, ,about the size of New Jersey, is inhabited by about 9 1/4 million people, 74% Jewish Israelis, 21% Palestinian Israelis and 5% defined as others. All Israelis have the same rights and privilege's as citizens and polls suggest no Israeli Palestinians want to leave. When the first meeting of the Knesset was conducted several Palestinians were participant members, they own businesses, and all the major religions maintain places of worship and so it goes.
Carter has always had a chip on his shoulder when it comes to Israel and blames lack of Jewish support, when he ran for re-election, as the basis of why he lost.
Now as to the three type of Palestinians. There are the ones previously discussed, the second faction live in Gaza under the rule of Hamas and the third live under the auspices of the PLO. In the latter two cases both are basically pawns. The U.N uses the Palestinians as pawns through UNWRA which was established to assist the 700,000 Palestinians who fled in 1947 to regain some citizenship status, which they have been deprived of by their own Arab Brethren. UNWRA gets about $1.2 Billion annually and has demonstrated no willingness or has any incentive to carry out their proscribed mission. In fact they claim they now have over 5 million Palestinians listed as "refugees" and thus need more funding.
Arafat became on of the richest Arab leaders through theft and reputedly was worth $5 plus Billion at the time of his death. UNWRA has also used funds for a variety of purposes and the schools they control teach hatred and their text books depict Jews as animals and to be feared. The hospitals under the control of Hamas are used as weapon facilities and Palestinian citizens, living in Gaza, are often used as shields when Hamas decides it is time to re-launch attacks on Israel.
Incidentally, Ariel Sharon unilaterally gave Gaza back to the Palestinians mistakenly believing it would help them create that nation they always reject when offered.
I am not suggesting Palestinians are all evil, have not some legitimate grievances but they are the victims of their own NAKBA (disaster) and corrupt leadership and have served as convenient pawns for the entire Middle East which is dominated by Muslims, Arabs who have a tribal history of being warlike. Islamic radicalism is buttressed by their Sharia Laws which claim land is sacred and not to be defiled by infidels. Their treatment of women is beyond reason and western values.
When I hear lies used to support anti-Semitism and to justify elevating the plight of Palestinians I become enraged but I know I cannot argue with those who have poison for blood. Israel is a democracy inhabited by industrious people who seek peace, have proven resilient and creative and are a loyal ally of my country. They are not a perfect people, they are human and they have their own prejudices but the world would be better off if there were more Israel's and less Iran's and Saud Arabia's etc.
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