Bush Sucks #5

Apparently the US Debt ceiling has been raised to 9 trillion. That's a lot of NYU trained corp. lawyers....... Lets just assume that the theories on private sector crowding out are true and lets leave out things like annualized cash-flow accounting v. economic accrua and lotl.... Reason #5, Bush Deficits+crowding out of private sector investment =Less economic growth. "There are some economic risks associated with a high level of government borrowing:

• If the economy has only a small supply of savings, increased government borrowing may force up interest rates and crowd out private sector investment
• Higher borrowing in the long-run requires an increase in the tax burden - this may dampen demand and economic growth
<>If the national debt increases, annual interest payments on the debt goes up - money that might have been spent in priority areas"

See Econ library

Our bumbling Texan President is stifling economic growth. In short, you can't cut taxes and increase spending. Loyal readers of this blog know the Sam Roe theory of political economy, tax rich people. I repeat, tax rich people. They will not miss it. Next in the series Bush and Democracy: Why Uzbekistan and Pakistan are what's hot on the street....