It appears we (Our Govt and the majority of voters) have not learned anything from history, even if it’s only about 15 years old. The most recent fiscal cliff deal, reviewed by the CBO, has $620 billion in tax hikes (over 10 years) and a whopping $15 billion in cuts!
For those of you who don’t know, Canada had very similar issues to us in the 90′s. In response, Canada cut $7 to $1 in tax increases, balanced their budget AND grew jobs during the dot-com bust when the global economy was hurting. Now, they are fiscally responsible and therefore better able to handle whatever the next problem their nation faces (many anticipating a housing bust shortly). You can review a well-written (not mine) college research paper on the subject written in 2011:
So, instead of learning from this fact, we seemingly do the exact opposite. This current fiscal cliff deal, if those numbers above are correct, is over $41 in tax increases to $1 in spending cuts on over a 1.3 yearly trillion dollar deficit.
Sickening
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Tags: Canada, CBO, Deficit, Dollar, Economy, fiscal cliff, jobs, Macroeconomic News, spending, US
Michael Kudrna
