From: mykes@shell.portal.com (mike myke schwartz)
Subject: Re: Conservative Values (Re: New group proposal:  alt.conservative.forum)
Followup-To: alt.fan.rush-limbaugh,talk.politics.misc
Organization: Portal Communications Company
X-Newsreader: TIN [version 1.1 PL7]
Date: Fri, 8 Jan 1993 11:44:49 GMT

Russ Anderson (rja@mahogany126.cray.com) wrote:
: 
: In article <2155@celia.UUCP>, steve@celia.UUCP (Steve Tyree) writes:
: > 
: >  From 1983 to 1990 "The Seven Fat Years" we experienced the longest 
: > peace time economic expansion and the longest general economic expan-
: > sion since the Kennedy Tax Cuts in the 60's. What happened in 1990 to
: > 1992 was due to the 1990 Budget compromise.
: 
: Let's see if I've got this straight.  The recession started in July 1990
: because of a budget compromise that was not passed until the end of 
: September 1990, right?

The recession started in July in large part due to the media.  In Jan. 1990,
almost Jan 1 to the day, the press was saying how the 80's were the years
the baby boom lived it up and that the 90's would be the years the baby
boomers started feeling their age and started saving for retirement.
Additionally, elimination of mortgage and credit card debt caused a lot
of people to spend their money on debt payments instead of new goods.
And the government also restricted the money supply by forcing banks to
keep a higher percentage of reserves.  Bush and Cheney also worked hard
to cut the military by $30 Billion.  Adding a tax hike to further limit
the private sector's spending/borrowing power was significant fuel for the
fire.  The boom would have continued if the private sector were encouraged
to spend money (by giving it money) on goods, creating demand, and so on.

But remember, 1990 was a year of Reverse Reaganomics (tm) and that in an
all-out attempt by the Democratic Fascist Party (tm) in Congress to force bush
into going against his no new taxes pledge.  I'm sure you are aware that bush
refused to sign the tax bill 3 times, and 3 times the government went into
Gramm/Rudman sequester.  And 3 times, congress extended the date the 
sequesters would take effect.  I bet Bush would have allowed the sequesters
to happen for good, but if congress can get around its own rules by taking
a vote at will, no sequester would have happened anyway.  The government
operating without a budget would have been terrible for the economy...

: >                                               This compromise had nothing
: > to do with Reagan and involved Bush "caving" into the Democrates on the
: > hill. We Conservatives and Classical Liberals believe that Bush caved in
: > to easily (ie - he lied about taxes and lost the election).

Agreed.  And congress stood totally in Bush's way of implementing any kind
of stimulus package at all.  

: >  The socialist naysayers cry that "The Seven Fat Years" were caused by 
: > deficit spending. That of course requires the listener to actually believe
: > that deficit spending has the ability to spurn economic growth. This also
: > requires belief in Keynes.
: >  What we all need to worry about is the latest theory held by many leftward
: > leaning economist.
: 
: Could you name some of these economists?
: 

Robert Reich, for one.  I'm not holding my breath that Clinton will keep any
of his promises wrt middle class tax cut and stimulus package.  In fact,
I expect to see 95% of what Bush proposed end up as Clinton's package.
Balanced Budget Amendment, line item veto, capital gains tax cut, first
time home buyer tax credit.

: >                     This theory uses "The Seven Fat Years" as empirical proof
: > that deficits dont matter. They think that the current government deficit 
: > is meaningless and if they persuade President-Elect Clinton of this, we can
: > all expect deficits to skyrocket through the roof.
: 
: Bush's own budget estimates show annual deficits >$300 Billion thru 1998.

What do Bush's revenue estimates show?  Negative growth?  Decent positive 
growth?  I've already stated that Bush's budget for 1993 is similar in size
to the 1992 bill, and that maintaining a fixed budget while revenues increase
gives us money to pay the debt...  And allows us to stop defecit spending
within a few years.  Like if we spend $1.5 trillion every year, tax 
revenues will eventually surpass $1.5 trillion...

: >  Steve Tyree - These opinions are mine and mine alone.
: >                "Just imagine what the deficit would be like if The Seven
: >                 Fat Years never occurred. Remember when Social Security
: >                 would not last till the next decade."
: 
: There was a massive increase in the Social Security tax to make it "solvent".

Yup.  And a damn unfair tax, too.

: 
: >                I hope my work schedule permits further reading here !
: -- 
: Russ Anderson    |  Disclaimer: Any statements are my own and do not reflect
: ------------------              upon my employer or anyone else.  (c) 1992
: EX-Twins' Jack Morris, 10 innings pitched, 0 runs (World Series MVP!)
Newsgroups: alt.fan.rush-limbaugh