Friday, August 12, 2011

Why did the debt and the deficit start ballooning right after Nixon, starting with Carter?

It was Nixon who finally destroyed whatever gold standard we had in place, he claimed "We are all Keynesians now". At that point, the Fed could print whatever money it wanted. No need to push a tax bill through congress to fund something, just turn on the spiggot and let the money flow. The concept of tax revenue is a joke at this point, most people think it fuels government spending, it most absolutely did not after Nixon.

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