Reply By: Deference Posted: Monday, November 22, 2004
Where are the fiscal conservatives?
(open plea to Draginol for awesome article / post)
Good luck, I tried to explain to Draginol that deficits are bad, but he seems to be pro-deficit. Here's an excerpt from my blog, actual quotes:
(After I explain that Canada has a surplus:)
Draginol: " So you currently have a budgetary surplus. So what. The US had one too until 2001 and it'll probably have them in the future. "
"As a % of GDP, the US's deficit isn't particularly high. If GDP grows faster than spending a bit we would be in surplus again."
"Canada isn't in deficit at this very second. Whoopie. Let me know when you guys pay off that debt. In about a century or two it should be paid down at your current rate (2003 "surplus" was $7 billion). Your INTEREST on your debt is almost 6 times that amount. So your "suruplus" isn't even enough to pay for your interest payments."
Doesn't sound like he thinks the deficit is a big deal, does it?
As I pointed out to him, surplus is calculated AFTER our interest payments have been made. Anyone with formal education in Fiscal Policy would know that. And our debt should be gone in 25 years, not 100. So I'm not sure Draginol is your guy if you want a fiscal conservative. Maybe I can help?
Kindest Regards,
David St. Hubbins