Ken
2009-04-14 16:52:11
What we really need is a constitutional amendment to limit federal spending Iincl. interest payments) to 20% of the GDP. This was the average in the 80′s and 90′s. In a recession, the government could inject stimulus by cutting taxes while maintaining the ceiling. Later, the deficit interest would be paid out of the 20% allocation. In wartime, if Congress declared war, the ceiling could be lifted as long ad non-defense spending stayed under 16%, the average for those two decades.
