A recession is looming because recessions are always going to happen. Economies go up and the economies come down. When it will happen is the question. Just as in the Bible, a government needs to store up money during the good times to use during the bad times. That makes good fiscal policy, doesn’t it?

Why have the Republicans decided the Bible is wrong? When Ronald Reagan cut taxes and run up deficits, we were in a recession with very high inflation, high interest and high employment. The tax cut and the subsequent lowering of interest rates was sufficient to jump-start the economy. Later the taxes were raised to cut the deficit and the economy boomed.

When Bush II took office, the government was paying off the National Debt so future administrations would have some ammunition for future recessions. Bush came to office after the dot.com stock collapse but with a good economy. He immediately put us back into deficits by cutting taxes and then 9-11 shocked the economy. In 2007, the Great Recession hit so taxes couldn’t be raised and some more were cut increasing the deficits and debt while trying to jump-start a terrible economy.

Now it is 2018, the economy is overheating, companies are awash with money, the Fed is selling bonds they bought to float the government rescue, and the Fed is raising rates from near zero. Instead of reducing the deficit and debt, Congress has emptied the ammunition storage so we have nothing to cut when the recession hits. They could have raised taxes to pay down debt and store up some shots for the upcoming recessions. Companies now have more money and the government has less. Our quiver is empty so hold on when the next one hits!