This is simplistic thinking in line with the “what if the government budget was a household budget” memes that float around.
> theory is that in good times you put on the brakes so there is something in the tank you can spend during bad times
The government is not a squirrel with acorns. It can spend during both good and bad times, as the past 30+ years have shown. The only backpressure is inflation. Nobody seems to actually care about debt, despite the hand wringing.
> There is no room to lower taxes anymore as we are already running a significant deficit, and there is a recession coming where we are going to need to juice the economy.
Yes there is, they just adjust the tax rates down further. There is no floor other than zero.
I’m not talking about rubbing the country like a household, still there are considerable reasons to do some accounting.
1. Even the most spend willing economists agree there is some limit to debt that is sustainable. It’s just way higher than what most are comfortable with.
2. There is also political/popular will. If this is not there it doesn’t matter what makes economical sense. In the U.S. we are firmly against that.
> theory is that in good times you put on the brakes so there is something in the tank you can spend during bad times
The government is not a squirrel with acorns. It can spend during both good and bad times, as the past 30+ years have shown. The only backpressure is inflation. Nobody seems to actually care about debt, despite the hand wringing.
> There is no room to lower taxes anymore as we are already running a significant deficit, and there is a recession coming where we are going to need to juice the economy.
Yes there is, they just adjust the tax rates down further. There is no floor other than zero.