Video: Reagan budget director David Stockman on TARP, the Fed, Ron Paul and Ronald Reagan

I disagree with him on several points, his biggest defect IMO being that taxes need to be increased to shrink the deficit. As a matter of historical fact that has been proven repeatedly, for each $1 in higher taxes results in $1.17 of new spending. Increasing taxes on anyone in any way will make the deficit worse, not better because Congress in whatever the opposite of infinite wisdom is, will simply spend it on new programs. In any case, here's ReasonTV with Stockman:

From the YouTube caption:

Last fall, Stockman was the GOP-defector du jour once more, arguing against extending George W. Bush's tax rates in the New York Times, on 60 Minutes, the Colbert Report, Parker-Spitzer, ABC, NPR, and MSNBC. Stockman's argument - that it's irresponsible to cut taxes when cumulative U.S. debt is steadily mounting as a percentage of GDP - is based on the simple principle that balanced budgets come only when revenues actually meet expenditures. If we're not willing to actually shrink government spending, he says, then we should pay full freight now, rather than forcing our children and grandchildren to foot the bill down the line.

But the higher taxes will lead to even higher spending, drain money from the private sector to fund the public sector, crash the economy and again cause the deficit to be even larger. The only way to right the ship is to cut the size of government and by quite a bit this time. The full interview with Stockman, almost 45 minutes worth, is here:

Interesting, but I have a bunch of disagreements with him on many points.

http://theblogprof.blogspot.com/2011/01/video-reagan-budget-director-david.html

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