In fact, he called on the nation to save most of the budget surpluses that loom in our nation's economic future. At the same time, his Republican critics have been calling for sizeable tax cuts, which would underwrite increased personal consumption, and some of his Democratic supporters have been calling for increased government spending on long-neglected domestic priorities. The president rejected both of those options. Virtually every elected official Republican and Democratic agrees that the United States should save more than it now does. And they also understand that federal budget surpluses add to national saving.
Surpluses enable the federal government to buy back bonds held by the public.
Those purchases, in turn, release funds for investment in buildings, equipment, and inventories. And more investment means increased economic growth. Unfortunately, everyone also agrees that budget surpluses produce Congressional fiscal incontinence. Republicans, and not a few Democrats, ache to cut taxes. Democrats, and not a few Republicans, have lengthy lists of government spending programs they would like to fatten up.