Thursday, June 09, 2005

The Goal of Deficits

Apparently someone does not understand the ideology behind Republican policy. AP reports that Federal Reserve Governor Edward Gramlich is arguing that the United States cannot grow its way out of the budget deficit:

"Fortunately, the budget numbers and the trade numbers have gotten a bit better recently but that doesn't solve the long-term problem," Gramlich said in response to audience questions after a speech to Milwaukee-area business leaders.

This misses the point of Republican plans. They realize that claims of growing our way out are bogus. Their real goal is to "starve the beast" and force the elimination of programs such as Social Security and Medicare by denying the government enough money to finance them. They also realize that the could not win elections by being honest about their long term goals.

Gramlich also added some honesty about another GOP proposal in saying, "Individual accounts may or may not be a good idea, but they won't solve the basic actuarial problem" facing Social Security.


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