I read an interesting Op Ed piece recently in the New York Times written by Paul Krugman entitled ”The Unwisdom of the Elite.” While this piece dealt largely with the federal deficit, it also posed a question that got my attention. It was asked, “What happened to the budget surplus the federal government had in 2000?” Mr. Krugman answered by listing three main things that not only spent the surplus, but left the government and American taxpayers with a large deficit. Let’s take a look at his list and see how accurate it is.
First, Mr. Krugman lists the Bush tax cuts, which added about $2 trillion to the national debt over the last decade. Second, he lists the two wars in Iraq and Afghanistan, which combined added an additional $1.1 trillion. And third on the list was the Great Recession, which led both to a collapse in revenue and to a sharp rise in spending on unemployment insurance and other safety-net programs, according to Mr. Krugman.
Mr. Krugman then goes on to tell who was responsible for all of the above. He correctly points out that it was definitely not a groundswell of public support for any of the three listed things that caused our national government to go from a surplus of over $230 million in 2000 to a huge deficit in eight years, a relatively short period of time. Regardless of whether you agree with the above, it’s impossible to ignore any of the three items mentioned by Mr. Krugman when making a list of reasons for our current deficit.
Source: New York Times
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.