Quote:
Originally Posted by Flames Fan, Ph.D.
Why would cutting entitlements help the stock market????
You do realize that those entitlements, like social security, contribute to GDP. When they cut people's Medicare / Medicaid, it's not that they're going to spend out of pocket... they're just going to defer the visit / procedure / buy less drugs. That means Kaiser, Pfizer and the local general practitioner all take a hit, thereby reducing their income and reducing their taxes paid.
All of the above results in less revenues to corporations, and the government taking in less taxes. In effect, back to recession.
Also, why would any US citizen want their country to mandatorily run a balanced budget??? They're the country with the best credit rating in the world, so they're supposed to forgo making any type of national investment that would require them to draw a line of credit? Can you name any successful company that doesn't leverage its balance sheet?
I really have to shake my head at what you're writing.
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I'm actually not sold on a constitutional amendment for a balanced budget myself. If nothing else in times of war or a national emergency borrowing money is appropriate. What I think the US citizens want right now is some of that debt paid down and a government with more self control in regards to spending.