Maybe a tax cut will help
This thread is hitting at the core of our fiscal problem hat is exacerbated by fed policy. Currently we are, as a nation, consuming more wealth than we are generating. The end result of course is standard of living contracts, unless debt makes up the wealth deficit, but that only makes the problem worse later in time. That is exactly what is going on in governments and in the family home. A second bad outcome is wealth is consumed faster than it is created via profitable ventures and wealth invested in profitable ventures is what creates more wealth. In summary, we are consuming the wealth that provides our standard of living and we are making it harder to turn the situation around by consuming the wealth needed to repair the situation.Reducing taxes noticeably helped when implemented by Kennedy, Reagan, and Clinton and will likely make things better for families and businesses this time as well. but for governments I doubt things will get better because this time the major entry on the balance sheet is debt and debt is the major drag on the economy. In my opinion, it would be better to address debt via reduced spending. Government spending is nearly 100% consumption that is 100% guaranteed to consume needed wealth. Reducing government spend will cut consumption shifting the ratio of consumption to investment favorably to possibly cure the economy, if we have not gone down the road too far already. Cutting spending is never popular, but it is necessary.Case in point, after WW! the country was mired in debt and recession. The fed raised rates and the statesmen politicians of the federal government cut spending by about 25%. Result, in less than two years the roaring twenties commenced. We have no statesmen for politicians, so we will not have politicians putting the interest of the country ahead of their need for re-election. Since WWII, self has been promoted over sacrifice. We are reaping the rewards.
What the Judge says in his opinion piece is spot on except he has missed the mark on the interest paid on the continuously rolled over WW1 debt. His estimate of 40% of tax revenue going to debt service is only going up via market forces. Because government cannot find buyers for its new debt plus the roll over debt at its fixed near zero interest rate, the fed stepped in with QE to buy its debt directly with printed money, money that has no wealth attached to it other than what is stolen from legacy dollars. There is a time lag, but now the lag is over and lenders are demanding more rent on their lent dollars to compensate for lost purchasing power. You can bet the fed will step in with another QE program, but it will only exacerbate the problem as the realization of the first $3.5 trillion is coming into maturation. The Ponzie is now common knowledge. the commentary is a good read:http://www.foxnews.com/opinion/2018/02/15/judge-andrew-napolitano-trump-s-new-budget-is-debt-bomb-waiting-to-explode.html