Deficit Rises to Record Level

Both parties in Washington have contributed to the massive federal deficit that if continued will hamper economic growth in the future. Currently Republicans lambast the free spending ways of Democrats now in control of Congress and President Obama, but for the past eight years they did little to stem the tide of red ink that Washington had amassed. Currently President Obama and Democrats in Congress have done nothing or put forth fiscal policy on how they would eliminate the enormous budget deficit.

To reduce the federal deficit Washington would have to stop it’s free spending ways. The current debate over Health Care Reform currently being debate only will add to the budget deficit as neither party are using sound economic principle on how they would pay for reforming the nations health care system. Democrats now in charge of all levers of power in Washington consistently pursue and pass legislation that has the opposite effect of creating economic growth.

The Democrats look pack to the bygone days when President Clinton had balanced the federal budget back in the 90’s. Both Democrats and Republican claim that they were the stewards’ of fiscal discipline, but both parties miss the mark.

The true benefit should belong to the American people! President Clinton in his first two years of office ran as a typical tax and spend liberal by raising taxes and increasing spending. His disastrous health care reform plan failed miserably and was one of the reasons the Republicans were able to gain majority rule in both Houses of Congress. The next six years each party stymied the other one, by which the Republican could not pass any tax cuts and the Democrats could increase spending.

Growth was centered in the private sector as computer technology transformed the American economy not seen since the advent of mass industrialization at the beginning of the twentieth century. Computer technology entered into all phases of American life and transformed how business operates. Small business and entrepreneurs’ thrived thus creating economic growth and allowing billions to flow into the treasury coupled with no large public expenditures allow the deficit to be reduced.

If Washington wants to increase economic growth then start helping small businesses and entrepreneurs instead of crippling them which is the current economic policy coming from Washington and this administration.