Friday, August 28, 2009

The Irony of Tax Tea Party Protest Signs

It is common to see children carrying signs at tax tea party rallies to protest how government budget deficits are burdening future generations. The irony of this is that the the tax cuts advocated by the conservative Republican politicians they support (without commensurate reductions in government spending) are the primary cause of the dramatic increase in the public debt since 1980.

There also seems to be a failure to understand the basics of macroeconomic policy. Economic declines are typically caused by a decrease in overall spending on newly produced goods and services, which economists call aggregate demand (AD). If consumers and businesses are unwilling or unable to increase spending during a recession or depression, government spending may be the quickest way to increase aggregate demand and reverse the economic decline. Deficit spending during economic downturns is an appropriate response if the goal is to lessen their impact. It is much harder to justify the deficit spending during the prosperous times of the past thirty years.


  1. Starting Universal National Health Care grew a bombed out, bankrupt Britain economy out of WW2's ruin.

    Britain began it's Universal National Health Care System immediately after World War II when most of it's buildings lay in bombed out ruins and Britain was incredibly bankrupt.

    The Universal National health Care system catalyzed the nation causing economic growth with the training of huge numbers of new doctors and medical personnel and the huge growth of the medical economy.

    Universal National Health Care helped lift Britain out of economic collapse. There was no "option".

    The time for American National Health Care is NOW BECAUSE we are in an economic depression.
    American Universal National Health Care will cause the high wage jobs and taxable business growth economic recovery in America that we so desperately need RIGHT NOW that are now being stifled by the minimal market coverage of private health insurers.

    American Universal National Health Care is an economic necessity. Our economic recovery that will be caused by the American Universal National Health Care can not be just an "OPTION."