Thursday, October 11, 2012

Raise taxes. Stop the wars. Recovery

The Center on Budget and Policy Priorities (CBPP) has produced the following chart based on CBO and other data.

The chart shows that the deficit is a function of the wars, the Bush tax cuts, TARP and other attempts to bring the economy back and the Great Recession itself.  The CBPP is a liberally oriented think tank, but I think it's unlikely that the period 2009 - 2011 has been distorted.  The tax cuts have had the biggest impact on the deficit after the Great Recession.  Why we thought we could fight two wars and lower revenue simultaneously is the question.  I'm starting to believe that my idea of a growing willingness on our part to believe that we are impervious to life's realities is intruding in more and more areas.  Lake Woebegone is becoming our home.

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