7 Alternativ A Ras BRP Depi Dan Labus Pansioner

Sanjay Jagatsingh · 7 alternativ a ras BRP depi dan labus pansioner

Mansoor's No. 5 Circular of 2010

US Plans to Let Tax Cuts For The Rich Expire

Bush had cut tax rates for the wealthiest 2% Americans and this did not boost economic activity while it only increased the budget deficit. America will however extend those granted to middle-income families.

Recall that when Reagan lowered top tax rates by about 10% in the 1980s the US didn't experience higher growth rates but only a quadrupling of its debt. Similarly when the bean-counter flattened our tax structure we not only got some of the worst growth rates in decades but very little happened in our country save Voodoo economics and the doubling of foreign debt.

Alternative Views On the Stimulus Package

Government Debt 101

Debt-to-GDP ratio of the central government (that doesn't include parastatal debt) is down by about 8.5% since its 2005 level. That's roughly where it was in 2000. How could that have happened given that the economy grew by about the same speed throughout the last decade (4.33%)?

Simple. Headline GDP numbers are calculated in real rupees -- after taking inflation into account -- while debt-to-GDP numbers involve nominal amounts. The trick is to make sure that the denominator increases faster than the numerator. For example nominal GDP has increased annually by 10.59% on average between 2005 and 2009 while debt has increased by only 6.26%. The corresponding numbers for Federation 2 are respectively 9.03% and 13.24% which would explain why the ratio went up.

Why did government debt increase at a slower rate during the last 4.5 years? We've covered that already. How important has been to lower the ratio? The answer to this question is another question: how has your life changed in the last 4.5 years?