Approaching 19,000,000,000,000 debt. solutions?

We've had many quarters of less than 1-percent growth since Obama took office. History shows the greatest growth in the US was around the 1900's before monopoly laws were enacted. Think auto industry, railroads, telephone etc. Our least growth has occurred in recent years when the federal government has overwhelming debt and the government is currently larger than any corporation in the world. I think a banker, Morgan IIRC, bailed out the U.S. debt ALONE back in the 1900s. Now days ALL the 1-percenters couldn't put a dent in the debt. The history of best growth all coincides with less regulation and freer markets.

We can SURELY find a "compromise" with much less regulation and taxes. It isn't an either/or situation. Think about it if it doesn't sink in right away.

Steve

 

I suppose you could shut down the government completely, even the constitutionally mandated offices for as long as it takes to eliminate the 19 trillion dollar debt; or we could ask our partners overseas to help bail us out or we could cut all foreign aid out completely. At least we have choice here.

 

From wsj



And yeah
Why can't we go back to 1900..... Doh!!!

 

According to your post Post Keynsian is magic.

 

You would have to understand economics to teach it. And please expound on which of my suggestions you think would inhibit economic growth. And before you state that it is raising capital gains taxes go back and look at economic growth rates before the capital gains rate was lowered.

 

But, our current low growth rate is also in a period of historically low taxes. And a compromise with much less regulation and taxes doesn't sink in as a compromise no matter how long you think about it. The dictionary can provide you with a definition of compromise should you need one.

 

Here is GDP growth by year

Event
1929 NA $104.6 NA Hoover became President. His high wage controls combined with the Fed's high interest rates (to defend gold standard) forces more businesses to go bankrupt. Stock market crashed in October.
1930 -8.5% $92.2 NA Congress passed Smoot-Hawley Tariffs, restricting global trade. Prices fall 6.4%.
1931 -6.4% $77.4 NA Dust Bowl drought begins. Prices fall 9.3%
1932 -12.9% $59.5 NA Hoover raised taxes to balance budget, worsening Depression. Prices fall 10.3%.
1933 -1.3% $57.2 NA Unemployment hit 25%. Roosevelt became President. New Deal created FDIC, FHA and Social Security. Glass-Steagall passed. Prohibition repealed. Inflation at .8%.
1934 10.8% $66.8 NA World trade dropped 66% since 1930. U.S. prices rise 1.5%.
1935 8.9% $74.3 NA Social Security enacted. Soil Conservation Act began restoring Dust Bowl. Inflation at 3%.
1936 12.9% $84.9 NA Inflation at 1.4%.
1937 5.1% $93.0 NA Inflation at 2.9%.
1938 -3.3% $87.4 NA Prices fall 2.8%.
1939 8.0% $93.5 NA Dust Bowl drought ended.
1940 8.8% $102.9 NA Selective Service Act signed. First Social Security checks paid. PA and LA highways open.
1941 17.7% $129.4 NA Attack on Pearl Harbor forced US into WWII, ending Depression. Inflation at 9.9%.
1942 18.9% $166.0 NA Inflation at 9%.
1943 17.0% $203.1 NA Prices rise 3%.
1944 8.0% $224.6 NA Bretton-Woods Agreement established U.S. dollar as a global currency and launched World Bank and IMF. Inflation rate 2.3%.
1945 -1.0% $228.2 NA End of WWII caused 1945 recession. Truman became President.
1946 -11.6% $227.8 $13,513 Inflation at 18.1%.
1947 -1.1% $249.9 $13,629 Marshall Plan and Truman Doctrine. Cold War began. Inflation at 8.8%.
1948 4.1% $274.8 $13,537 Berlin airlift.
1949 -0.5% $272.8 $13,819 Recession began. NATO established. Communists took over China. Prices fall 2.1%.
1950 8.7% $300.2 $15,029 U.S. entered Korean War.
1951 8.1% $347.3 $15,532 Inflation at 6%.
1952 4.1% $367.7 $15,985
1953 4.7% $389.7 $15,664 Eisenhower became President. Korean War ended.
1954 -0.6% $391.1 $16,338 The Dow finally got back to its pre-Depression level. Recession began. Fed kept rate around 1%. Prices fall .7%.
1955 7.1% $426.2 $16,568 Supreme Court ordered school desegregation. Fed raised rate to 2.48%.
1956 2.1% $450.1 $16,770 Inflation at 3%.
1957 2.1% $474.9 $16,016 Fed raised rate to 3%.
1958 -0.7% $482.0 $16,908 GDP plummeted 10.4% in Q1. Unemployment at 7.1%. Fed lowered rate to .63%.
1959 6.9% $522.5 $17,380 Alaska and Hawaii became states. Fed raised rate to 4%.
1960 2.6% $543.3 $16,986 1960 recession started. GDP fell 4.2% in Q4. Fed lowered rate to 1.98%.
1961 2.6% $563.3 $17,983 Unemployment hit 6.1%. JFK became President, and attacked recession with expansionary fiscal policy. Bay of Pigs invasion. Berlin Wall erected.
1962 6.1% $605.1 $18,354 Cuban Missile Crisis.
1963 4.4% $638.6 $19,233 JFK assassinated in November. LBJ became President. Fed raised rate to 3.5%.
1964 5.8% $685.8 $20,021 Fed raised rate to 3.85%.
1965 6.5% $743.7 $21,464 U.S. entered Vietnam War. Fed raised rate to 4.32%.
1966 6.6% $815.0 $22,847 Fed raised rate to 5.76% to fight 3.5% inflation.
1967 2.7% $861.7 $22,454 Inflation at 3%.
1968 4.9% $942.5 $23,231 Fed raised rate to 6% to fight 4.7% inflation.
1969 3.1% $1,019.9 $23,064 Nixon became President. ARPANET created. Man landed on the moon. Fed raised rate to 9.19% to fight 6.2% inflation. AMT launched.
1970 0.2% $1,075.9 $23,381 Recession. GDP plummeted 4.2% in Q4. Nixon bombed Cambodia. Fed lowered rate to 4.9% to fight recession even though inflation was at 5.6%.
1971 3.3% $1,167.8 $23,919 Unemployment peaked at 6.1%. Fed lowered rate to 3.5%, then raised it to 5%. Inflation at 3.3%.
1972 5.2% $1,282.4 $25,477 Inflation at 3.4%.
1973 5.6% $1,428.5 $25,415 OPEC oil embargo. Nixon took dollar off gold standard, tripling inflation to 8.7%. Fed doubled rate to 11%. U.S. withdrew from Vietnam. Nixon resigned over Watergate.
1974 -0.5% $1,548.8 $24,601 Wage-price controls created stagflation. Ford became President. Fed raised rate to 13% to fight 12.3% inflation.
1975 -0.2% $1,688.9 $25,854 GDP fell 4.8% in Q1, unemployment peaked at 9%. Fed lowered rate to 7.5% despite 6.9% inflation.
1976 5.4% $1,877.6 $26,429 Fed lowered rate to 4.75%. Inflation at 4.9%.
1977 4.6% $2,086.0 $27,238 Carter became President. Inflation at 6.7%.
1978 5.6% $2,356.6 $28,699 Fed raised rate to 10% to fight 9% inflation.
1979 3.2% $2,632.1 $28,775 Fed raised rate to 15.5% to fight 13.3% inflation, then lowered it to 12% confusing price-setters. Iran hostage crisis. Three Mile Island disaster ends further nuclear construction in U.S.
1980 -0.2% $2,862.5 $28,957 Fed raised rate to 20%. GDP dropped 7.9% in Q2. Fed lowered rate to 10% by August to boost economy, then raised it to 20% to fight 12.5% inflation. Iran oil embargo.
1981 2.6% $3,210.9 $27,982 Reagan became President. Fed lowered rate to 12%. Inflation at 8.9%.
1982 -1.9% $3,345.0 $28,167 To combat 1982 recession, the Garn-St. Germain Depository Institutions Act was passed, removing restrictions on loan-to-value ratios for Savings and Loan banks, while budget cuts reduced bank regulatory staff. Fed lowered rate to 8.5% since inflation was a moderate (in those days) 3.8%.
1983 4.6% $3,638.1 $30,307 Unemployment was 10.8%. Reagan proposed Star Wars and increased military spending.
1984 7.3% $4,040.7 $31,428
1985 4.2% $4,346.7 $32,453
1986 3.5% $4,590.1 $33,036 Reagan cut taxes. Chernobyl nuclear accident.
1987 3.5% $4,870.2 $34,148 Black Monday stock market crash. Inflation at 4.4%.
1988 4.2% $5,252.6 $35,291 Fed raised rate to 9.75% to combat 4.4% inflation.
1989 3.7% $5,657.7 $35,941 Bush 41 became President. Exxon Valdez oil spill. Invasion of Panama. 1989 Savings and Loan Crisis caused recession. Berlin Wall fell. Fed lowered rate to 8.25% to fight recession, even though inflation was still 4.6%.
1990 1.9% $5,979.6 $35,145 Iraq invaded Kuwait. Dow fell 18% in 3 months. Inflation rose to 6.1%.
1991 -0.1% $6,174.0 $35,694 Desert Storm. 1991 recession. Breakup of Soviet Union. Fed lowered rate to 4%.
1992 3.6% $6,539.3 $36,381 Fed lowered rate to 3%.
1993 2.7% $6,878.7 $37,171 Clinton became President. NAFTA and European Union signed into law. World Trade Center bombed.
1994 4.0% $7,308.8 $38,008
1995 2.7% $7,664.1 $38,544 Fed raised rate to 6%. Inflation a moderate 2.5%.
1996 3.8% $8,100.2 $39,825 Inflation at 3.3%.
1997 4.5% $8,608.5 $41,176 Thailand cut its dollar peg. Speculators sold all Asian currencies.
1998 4.5% $9,089.2 $42,663 Russia debt default. Long Term Capital Management hedge fund nearly collapsed. Fed lowered rate to 4.75%.
1999 4.7% $9,660.6 $43,935 Y2K scare boosted tech purchases. Budget surplus. Euro created. Glass-Steagall repealed. Fed raised rate to 5.5%.
2000 4.1% $10,284.8 $44,492 Tech bubble burst. Fed raised rate to 6.5% to fight 3.4% inflation.
2001 1.0% $10,621.8 $44,687 Bush 43 became President. Recession worsened by 9/11 attacks and War on Terror, but helped by EGTRRA, the first Bush tax cut. Fed started lowering rates.
2002 1.8% $10,977.5 $44,996 Bush calls for regime change in Iraq, creates Homeland Security.
2003 2.8% $11,510.7 $46,560 Unemployment at 6%. Fed lowered rate to 1%. Bush enacted JGTRRA tax cut for businesses. Iraq War began.
2004 3.8% $12,274.9 $47,800 Fed started raising rates.
2005 3.3% $13,093.7 $48,856 Hurricane Katrina cost $250 billion in damage.
2006 2.7% $13,855.9 $48,987 Fed funds rate raised to 6.75%. Swine flu epidemic.
2007 1.8% $14,477.6 $49,060 Dow reached new high of 14,164.43. Inflation at 4.1%. Fed dropped rate 3 times, to 4.25%, to ease banking liquidity crisis. LIBOR rose to 5.6%.
2008 -0.3% $14,718.6 $46,941 Stock market crash of 2008 led to global financial crisis and $350 billion spent on bank bailout bill. Fed lowered rate 7 times to 0%. See 2008 GDP by quarter.
2009 -2.8% $14,418.6 $47,280 Obama became President. Dow dropped to 6,594.44. Obama Stimulus Act spent $400 billion, reversed downward spiral. See 2009 GDP by quarter.
2010 2.5% $14,964.4 $47,805 BP oil spill. Bush tax cuts extended. Obamacare and Dodd-Frank passed. See 2010 GDP by quarter.
2011 1.6% $15,517.9 $48,705 Japan earthquake and Mississippi River floods. 10-year Treasury yield hit 200-year low. Iraq War ended.
2012 2.3% $16,163.2 $49,179 Presidential campaign and fiscal cliff created business uncertainty. Superstorm Sandy hit East Coast. See U.S. Economy 2012
2013 2.2% $16,768.1 $49,740 Slow growth thanks to sequestration. Low nominal GDP growth thanks to low inflation. First year GDP per capita returns to pre-recession level.
2014 2.4% $17,701.3 $50,902 Growth increases as economy gets back on its feet, and inflation remains low. Fed ends Quantitative Easing.

 

^ posting stuff like that should be illegal. Do you imagine someone will actually read that? Are you trying to scare people off with a big wall of text? it's just annoying, internet pollution. Post a link and/or summarise the relevant part like a sane person would do.

 

we have 19 trillion in debt.

we don't owe back most of it.

all we do owe, is the interest.

nations buy our bonds for the interest, and if they sell their bonds back, they lose all that wonderful interest.

so we have no crisis

 

If you can't be bothered to read the information when it is posted right in front of you why would you bother to go to a link?

 

I assume you don't actually know that bonds have dates when they mature and must be paid or rolled over.

 

Limit government to its role under the Constitution.

That would cut the government by about 50%, a nice start.

 

and we ALWAYS pay them back.

so there is no crisis

 

The reason we can ALWAYS pay them back is also the reason why there is NO NEED for the government to collect taxes, right?.

 

There is no incentive to pay off the debt when the interest added each year is put into the general fund to be spent on what ever they want too.

 

And we roll our national debt over every year...effectively paying only the interest

 

No we don't. We roll over the matured debt instruments. That is why debt maturity and forecasts of interest rates are important to managing debt.