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2016 Postmortem

hedgehog

(36,286 posts) Tue Dec 11, 2012, 03:51 PM Dec 2012

If it's OK to run a deficit during war time, why not during a

depression/recession?

4 replies

= new reply since forum marked as read

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If it's OK to run a deficit during war time, why not during a (Original Post) hedgehog Dec 2012 OP

You need to run a deficit during depression/recession because in those cases the economy Filibuster Harry Dec 2012 #1

we are currently "during war time" remember, so a minor deficit is ok nt msongs Dec 2012 #2

Spam deleted by SidDithers (MIR Team) TForbster Dec 2012 #3

Exactly liberal N proud Dec 2012 #4

Filibuster Harry

(666 posts)

1. You need to run a deficit during depression/recession because in those cases the economy

Reply to hedgehog (Original post)

Tue Dec 11, 2012, 04:02 PM

Dec 2012

has tanked or is tanking. In order to stabilize it the government needs to inject money with the thought that if the economy is turned around that growth will help pay for the deficit.

As far as war many times taxes have gone up to pay for wars. I truly believe that the Bush tax cuts (given back as a refund -- W said- because a surplus was the people's money -- should have been repealed after the first year of war (knowing at that time the war was going to last longer).