New York (CNNMoney) - What's to blame for the big growth in federal debt? Republicans blame runaway spending. Democrats blame tax cuts.
Neither is quite right. The fact is both spending and taxes play a role.
The story misses the fact that Republicans did both- They cut taxes to the lowest levels in 60 years (and want more cuts), and they massively increased spending for their little adventures in Iraq and Afghanistan- now well more than $1.5 trillion and climbing.
The GOP can blame the elderly for wanting their Social Security, or the poor for needing Medicaid, or the people who lost their jobs in the Bush Crash of 2007, but at the end of the day the evidence is in: Want to break an economy? Give it to a Republican!
Yes but the bigger difference between the two is that tax cuts help creatre wealth which eventually increaes the government's tax revenues. Whereas, spending has the opposite affect and to sustain the spending, more taxes have to be levied on an ever shrinking wealth pool. Economics 101 – guess this is not taught at Harvard Law.
If focus on one side of the ldeger is done, then only half of the problem is dealt with. We need the whole problem reviewed.