TEN TRILLION DOLLARS AND COUNTING

Ten Trillion Dollars and Counting



Ten Trillion Dollars and Counting

What is the “starve the beast” approach discussed in the film? The film suggests that this approach does not really accomplish what it is meant to accomplish?

Starve the beast is a fiscal-political strategy which advocate the cut in taxes. The philosophy behind this policy is that the any government would not live beyond its means and that is why when there is a tax cut, then automatically government would reduce their spending. Although, when you analyze the US economy over the year then you will notice that US government always live beyond their means. As one of the senior official of the US parliament said that we as Americans borrow money from Arabs ,chinesse and Japanese and give it ot the best of our people, just to maintain their luxurious lifestyle? It is really noty worth off says by Matt Miller, a senior fellow at the Center for American Progress, a liberal-leaning research group. “That was really unprecedented.” According to Bruce Bartlett , a historian, economist and former political advisor to U.S. President Ronald Reagan , this strategy, consisting in carrying out tax cuts before reducing state spending, appeared in the year 1970 . Expressed and theorized by the likes of economist Alan Greenspan , it is becoming popular within the Republican camp in the late 1970s, Ronald Reagan made ??it one of the defenders in 1981 , when set up, under his presidency, the policy of tax relief known as the Economic Recovery Tax Act of 1981. The policy of tax cuts implemented in 2001 and 2003 by U.S. President George W. Bush , known as the "Bush tax cuts" is also an example(Mazmanian, Sabatier, 1983).

But without any doubt, the strategy of “Starve the Beast” strategy did not work for the US. According to some economist that “Starve the Beast” was a political motivated move rather than an economically motivated move. Some economist also point out the fact that the republicans only like the part of tax cut in the “Starve the Beast” strategy and did not like the other part of reducing government spending of this strategy.

Why was George H.W. Bush unable or unwilling to keep his promise: “read my lips, no new taxes?”

The father of George H.W Bush initiate this famous phrase” Read my Lips” which says 'no new taxes'. Therefore, when George H.W ...