Subject: Re: Brk annual meeting questions,
knighttof3 opined: no Democrat understands how to NOT tax and spend.

In the interest of rational discussion of this important matter of the deficit, I'll point out that the Democrats balanced the budget in the fairly recent past. Clinton and Gore reduced and then eliminated the deficit with smart and comprehensive cuts of government spending with a reasonable level of taxation. It can be done.

Mistakes will be made: Clinton's financial deregulation contributed to the Great Recession, and I think the welfare reform they implemented is partially responsible for the current boom in homelessness. Clinton's sexual picadillos helped tank Gore's campaign, so the policies that balanced the budget ended with his loss.

However, they made balancing the budget look easy. The economy was boomed as they accomplished the feat.

Ever since Bush the Younger took office after Clinton, Borrow and Spend has ruled the day, and it has been more or less sustainable until recently, when it took off due to ill-timed duo of the the Trump tax cuts and the pandemic. Biden kept his foot on the gas too long, rightly wanting to continue to fuel the recovery from the pandemic crash, but the last round of checks were too big, which combined with pandemic supply-line problems to send inflation soaring to destabilizing levels, meanwhile the Dems were unable to pass any significant tax reform, so the deficits continued to soar.

Despite those problems, we were on target for a smooth landing, with inflation down to 2.5-3.0% and the economy growing robustly when Biden handed off the economy. That's a pretty Goldilocks type situation on two of the most important measures. Then Trump took a monkey wrench to it with wild unfocussed cutting of government spending, employees and functions that hit every aspect of the government and it's myriad interconnections with the private economy. The impact of this has barely begun to be felt. Often times with fairly negligible savings compared to the overall size of government spending, at times wrecking programs which would contribute to future increases in tax revenue. Cutting off your nose to spite your face?

Then, Trump shocked the markets and the economy with large and unpredictable tariffs, and all the sudden we're in a pickle with growth drying up at the same time the deficit and debt soar to untenable levels. Interest rates are climbing due to the economic uncertainty and expected tariff-related inflation. And Trump is trying to extend his former tax cuts, which will guarantee enormous deficits for the near future, since I don't believe the Republicans can pass major cuts to Medicare/Medicaid/Soc. Security/Military which make up the vast majority of spending.

Things don't look good, but I think it's possible to bounce back. It's not necessarily the end of the US Era.