How do Republicans figure that [low tax] + [high national debt] = [a strong economy]?

Question

How do Republicans figure that [low tax] + [high national debt] = [a strong economy]?

Answer 1

People will have more money to spend, more cash to consum material things.

Answer 2

It's not just Republicans - be fair !! EVERY American govt. promotes and lives off debt. The current national debt of the US is $9 trillion - and is rising by $6.43 million everyday. Republican or Democrat, no US President has ever cared or bothered to pay back this huge debt since Nixon disconnected the dollar from gold in 1971. And why ? Since the dollar became the World Reserve Currency in 1944(Bretton Woods Agreement), all world countries must hold large stocks of dollars to pay for essential commodities like oil and food. This has provided the advantage of cheap, cheap oil for the Americans - while other countries pay their bloody debt. In fact, this was the reason for the American boom and prosperity after WWll and led to the wonderfully easy, comfortable and cheap "American Way".  

But now things are changing radically. More and more countries have unlinked their currencies from the dollar(Russia, China, Kuwait, Venezuela, Brazil, Canada etc.) because they are fed up with the poor dollar performance and some of these countries are even ignoring the Bretton-Woods Agreement, and are trading oil in anything thing but the weak dollar. This is and will hurt dollar bad if it continues.....

The US govt, The Fed and The US Treasury haven't got a clue how to handle a crisis like the Subprime mortgage probem, oil prices  or the weak dollar. All they seem to do are prop up the US financial sector(the very sector that caused the Subprime disaster !!) with massive donations as well as gleefully printing more and more greenbacks.

The Americans now moan about the price of gas rising to $4.00 a gallon. In Europe, we have been paying well over twice that price for gas for many years. Soon the US will know what its like to have a European lifestyle. Level playing field - I'm all for that.

The fault really lies in the expectations, credit, greed and debt of the US people. But don't misunderstand me, the UK and many European countries have this same problem - they just seem to handle this problem better than the US. Trouble is that the "American Way" is regarded as "hallowed, untouchable ground" by US govts. Nothing must disturb this status quo. But, unfortunately The American Way - this holy turf - is so linked to oil and the dollar that it is inevitable that living standards must erode and change. In short, people will be forced - thru' price rises caused by higher oil prices - to live a different way.

This will mean a downsizing of the "American Way". It's either that or more credit debt. And  any US  govt. that gets into power - whatever party - must not touch or alter  "The American Way" which would be seen as political suicide. And there lies the rub. No US govt. can control the price of oil - which is a global problem.

The West - and particularly the US - are in for a rough ride ....

Answer 3

The republican party bills itself as the party of "small government".  I.e. low taxes *and* low spending.  In recent decades, pretty much since the Reagan years, they've found out that low taxes is easy to sell, but the spending cuts required for them are not, so they've compromised. :)

Ironically, this leaves the democrats, who are at least willing to tax enough to fund their spending, as the party of overall fiscal responsibility.  I don't envy the voter who wants to vote for a low-tax, low-spending option.

Answer 4

HELLO, low taxes.... ???? what r u talking about debt???

What u got a problem with us republicans