Deficit

We were told, during the Reagan presidential campaign, that the deficit was a major cause of inflation. Since the deficit has increased, and inflation has decreased, it seems to me that we were misinformed. I believe we were further misinformed when we were told that reducing taxes would increase revenue. Why are we continuously under a barrage of anti-tax propaganda? I have been aware of people lamenting taxation for about 50 years, and have not known one person who suffered real hardship because of taxes.

The Metropolitan Museum of Art shed 14% of its staff in the year ending in June amid a record operating deficit. At least 250 employees were fired or took buyouts as the museum reported that its investments declined by more than $600 million, or 24%. Those numbers and others culled from the 2008-09 annual report posted on the Met's website detail how even New York City's best-attended museum struggled as stocks and fundraising declined....

Of course there is outrage at Reagan's budget. Every clear-thinking citizen who heard of the proposed $92.5-billion deficit is outraged and disgusted. Evidently, after eight years of the state of California budget preparation and eight years of the same exercise in the White House, Reagan has learned nothing. He spends the nation's money the same way Nancy replenishes her wardrobe . . . borrowing, keeping, and never paying the debt. Reagan's last budget only makes George Bush all the more welcome.

So much recent talk about solving the deficit leads me to want to again submit my idea, which I still think is good and would make those of us willing to volunteer feel good because it was in our recent lifetime the deficit grew. Simply let seniors volunteer to have whatever amount they choose to give deducted from their Social Security check each month--$10, $25, $100 or more, which most of us wouldn't even miss. Stern's article about Perot's proposal brought to mind my idea again and maybe those multibillionaires would give it all!

I'm tired of hearing people blame our $200-billion deficit on Congress. When President Carter left office, the deficit stood at $40 billion. Yet, only two years later, it was almost $200 billion. To put all the blame on Congress and not President Reagan only shows the ignorance of the public. So as to set the record straight, it was Reagan who gave us this record deficit with his tax-cut programs for the rich coupled with his massive defense spending with borrowed money. Congress should have stopped this before it got to where it is now. However, when Reagan was first elected, he won by such a large margin that Congress was afraid to veto his spending programs for fear of being accused of attacking a popular President.

Top Republican leaders backed House Majority Leader Eric Cantor's departure from bipartisan deficit negotiations, and in an orchestrated way insisted that President Obama must take over the negotiations. "I would expect to hear from him," said House Speaker John Boehner (R-Ohio). "That's the president's job," said Mitch McConnell of Kentucky, the Republican leader in the Senate. "He needs to lead. " Boehner said the talks could resume if tax hikes are off the table. While all sides had expected Obama and Boehner would eventually negotiate the final agreement, Cantor's abrupt departure cuts short the talks at a critical moment, interjecting an air of uncertainty.

WASHINGTON -- The U.S. current account trade deficit decreased more than 12% to $117.4 billion from April through June as exports increased along with money flowing into the country from foreign investments, the Commerce Department said Tuesday. The current account figure -- a comprehensive gauge that includes trade in goods and services, as well as income and government transfers -- came in below analysts' expectations. The deficit for the first quarter of the year was a revised $133.6 billion.