buritobr
YaBB God
Posts: 3,696
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« on: December 16, 2016, 05:28:28 PM » |
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Very bad economic plan. The right is using the justified fear of budget deficits and increasing public debt in order to implement its "small welfare state" agenda.
The constitutional amendment required to freeze the federal spending for the next 20 years. But if we freeze the spending now and the economy starts to recover, we will reach a budget surplus in less than five years. So, there is no need anymore to freeze the spending. The goal of this amendment is reducing the taxes in the future, not the deficit.
Nowadays, the ratio federal spending/GDP is ~20%. If we freeze the federal spending for the next 20 years, and the GDP grow at a rate of 3% yearly, the ratio federal spending/GDP will be ~12%.
I believe that the next administrations will try to aprove a constitutional amendment cancelling this amendment that freezes the budget.
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