Is there a correlation between tax cuts (policy favored by the Republicans) and a growing federal deficit?
(These numbers don’t lie. Google “federal deficit politics” and you will find many versions of this same graph. Our last budget SURPLUS was during Clinton. Bush’s administration was tax cuts, economic stimulation “surges”, an expensive war in 2 countries, growing trade deficit, the list goes on…did you know that?) Why are we in hock to so many countries? What happens when all these countries who own so much of U.S. debt want their money back? (Foreign countries buy U.S. debt through buying treasury bonds among other debt instruments. They don’t do this for fun. They do it for a return. What if the value of their investments takes a dive?) How much will the light green slice of the pie increase (private sector Americans) if the light blue section (foreigners) contracts? (The United States is not looking like a great investment in foreigners’ eyes at the moment) How much will this month-old chart change given current events and this $600 billion government bailout ? (Negative values me
