The United States needs to increase its budget deficit!

[United States of Capital]

Decrease the budget deficit, I know that it will hurt the economy but the debt to gdp percentage is to big, cut 450 or 500 billion dollars and I will be happy.

But don' t you know the negative effects it will have on the economy?

[United States of Yankeeland]

Decrease the budget deficit, I know that it will hurt the economy but the debt to gdp percentage is to big, cut 450 or 500 billion dollars and I will be happy.

But don' t you know the negative effects it will have on the economy?

Yes but the worst is over, reduce the deficit to a size where economic growth will make the debt to gdp size decrease over time untill unemployment comes close to 6 percent untill we balance the budget.

[United States of Capital]

But don' t you know the negative effects it will have on the economy?

Yes but the worst is over, reduce the deficit to a size where economic growth will make the debt to gdp size decrease over time untill unemployment comes close to 6 percent untill we balance the budget.

You mean balance the budget when unemployment comes close to six percent, the thing is that if you cut spending by 500 billion dollars GDP will decrease and the debt to gdp percentage will increase.

[United States of Yankeeland]

Yes but the worst is over, reduce the deficit to a size where economic growth will make the debt to gdp size decrease over time untill unemployment comes close to 6 percent untill we balance the budget.

You mean balance the budget when unemployment comes close to six percent, the thing is that if you cut spending by 500 billion dollars GDP will decrease and the debt to gdp percentage will increase.

But once the GDP has finished decreasing the smaller defcit will reduce the debt to gdp ratio overtime.

[United States of Capital]

You mean balance the budget when unemployment comes close to six percent, the thing is that if you cut spending by 500 billion dollars GDP will decrease and the debt to gdp percentage will increase.

But once the GDP has finished decreasing the smaller defcit will reduce the debt to gdp ratio overtime.

Depends if America is ready for another recession, and better cut alot of military spending if cut any spending at all. I mean its excessive.

[United Angkoria]

Why would you want debt in the first place? Debt is not a good thing.

[Regnum Dominae]

Why would you want debt in the first place? Debt is not a good thing.

Not necessarily true.

[Neoconstantius]

Why would you want debt in the first place? Debt is not a good thing.

That depends on context, really...

[Maqo]

Why would you want debt in the first place? Debt is not a good thing.

Debt is an extremely important economic tool. Essentially, it allows you to benefit NOW from things you can afford in the future.
This means that I can build a factory with debt - because owning that factory will allow me to afford the factory.
Or, it means I can buy a house of my own with debt rather than perpetually paying rent.
It means that if your house burns down, you can go out and get a new set of clothes and shoes and be able to get to work to keep earning money, rather than losing your job because you didn't want to get into debt.
It means that if the economy crashes and people stop spending, you can do the spending for them to get the economy active again rather than spiralling into deflation.

Don't think that all debt is bad. Debt can be an enormously liberating thing if you leverage it correctly.

[Divair]

Why would you want debt in the first place? Debt is not a good thing.

Read the OP. Wild idea, I know.

[Calimera II]

Budget surplus isn't desirable.

[Evil Grantica]

Well, it's possible that you're right in the short run.

In the long run, always running up debt faster than we pay it off is unsustainable. You can't do it indefinitely.

Also, look at Europe. Germany practiced fiscal responsibility. Germany has a strong economy, especially in heavier industry and heavy consumer products (chainsaws!). Greece ran up deficits, and had to bailed out by who? Germany and other nations that practiced fiscal responsibility. Why? Because the Euro was in danger.

The main argument against this though is that it can't be sustained indefinitely. It also effectively mortgages the future for today, which doesn't make sense.

Besides, a lot of the overspending is wasteful and lately in terms of bailouts. Not good.

EDIT: Sorry, I just noticed that this was a gravedig. Necromancy is not welcome, I know!