Balanced federal budgets help the economy more than tax cuts to wealthy

[JPJones]

And out-of-control deficits harm the economy more than tax cuts help it.

Repeat often and FU Guiliani.

Example?

Clinton raised taxes to balance the budget, and the economy grew for years.

Low deficits --> less borrowing by the government --> lower relative yields on treasuries --> higher risk investments become more attractive, i.e. loans to businesses instead of the government --> companies expand with the cheap money

High deficits --> treasury yields are high relative to interest rates --> less investment in the economy, i.e. businesses --> shitty economy --> Fed lowers interest rates --> treasury yields are higher still relative to interest rates --> repeat

[indepat]

1. It's a shame the RWers don't get it: Actually they too know but don't give

a rat's ass.