There was a brief clash with Senator Clinton (D - NY) over the forecasts regarding the Bush tax cuts that were enacted in 2001.
According to the article, Greenspan was quoted as saying "It turns out we were all wrong" regarding the forecasts on budget surpluses after the tax cuts were passed.
Clinton fired back stating: "For the record, we were not all wrong, but some of us were."
So what can we make out of all of this?
First of all, we can conclude that Mrs. Clinton and the rest of the Democrats are still clueless when it comes to even a basic understanding of economic theory.
Earth to Liberals: Without the Bush Tax Cuts of 2001, our economy would have totally tanked and most likely would have faced a depression. Does anyone want a repeat of the 1930s? (and don't try and tell me that FDR's New Deal helped us get out of that mess, because that is bunk.)
Oh and let me remind everyone reading what a surplus is: You have more money taken in than you actually spend. This is NOT a good thing. This is in fact worse than a deficit!!! Why? Simply put, if the government isn't spending everything it takes in then it is taking way too damn much from everyone. This in turn hurts the economy. How? We are a market driven economy, which means that it is up to the individual consumer to help the economy churn. When they keep getting more and more money taken away from them by the goverenment, that means they have less to spend and thus the economy has less fuel and begins to slow down, which then in turn hurts the consumer again. See how this could end up being a bad thing?
So why are Liberals so angry over the loss of these surpluses if they are so bad?
You have to think like a liberal. (Yeah, I know it doesn't make sense since Liberals don't think, but stay with me here.) What would they have done with all that money? If you guessed spend it you guessed correctly. They would undoubtedly use it to create a boatload of new programs that would most likely eat up billions of dollars, thus creating deficits or having to end up raising taxes (especially those at the upper brackets). This is bad, because most of the time, once a program has been implemented, it's almost impossible to cut spending to it or cancel it. It just ends up costing more and more each year.
So when Clinton says that only some of us were wrong, she's right. It was the Liberals that were wrong about the tax cuts. It was those cuts that helped turn this economy around and prevented us from going into a depression.
Hope everyone enjoyed the quick lesson.
-Vince-
« All done!
