Tag Archives: Budget Cuts

June 21, 2011 · 5:37 pm

PIMCO Founder To Deficit-Obsessed Congress: Get Back To Reality

It’s probably too late to talk any sense into the GOP Congress and the Democratic enablers, but this just might make a difference…

I’ve been saying all along, they are doing exactly the opposite of what needs to be done to drive an economic recovery.  You have to spend to create jobs, which will increase purchasing power to drive demand for consumer goods and increase tax revenues.

You worry about deficits once the economy has recovered. And the deficit will be a much smaller problem as increased revenues from taxes-income and sales- will ease the burden on state, local and federal governments.

Then you repeal the Bush tax cuts, end the wars in Afghanistan and Iraq, remove the cap on Social Security withholding taxes and it’s all fixed.

Why don’t they just listen to me?  And Paul Krugman. And now, Bill Gross…

From TalkingPointsMemo:

 

One of the most influential investors in the world of finance has a message for lawmakers — particularly conservative lawmakers — on Capitol Hill: rejoin the real world.

In a prospectus for clients, Bill Gross, a co-founder of investment management giant PIMCO, says members’ of Congress incessant focus on deficit — and in particular, the manner in which they obsess about deficits — is foolhardy, and a recipe for disaster. What the country needs, Gross said, is real stimulus now, and a measured return toward fiscal balance in the years ahead.

More:   PIMCO Founder To Deficit-Obsessed Congress: Get Back To Reality | TPMDC.

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June 14, 2011 · 11:03 pm

Key Dem Senator: Obama ‘snookered’ by GOP into Talking Deficit Over Jobs

I could not agree more….

This says everything I’ve been thinking….

It’s always a pleasant surprise to see some DC Democrats talking a little sense…

God knows, the GOP never will….

From RawStory.com:

Urging the administration to enact new measures to lower the unemployment rate, Sen. Tom Harkin (D-IA) said President Barack Obama got “snookered” by Republicans into prioritizing deficits over jobs.

“I am concerned about the Obama administration’s approach on this,” Harkin, the chairman of the Health, Education, Labor and Pensions Committee, told The Hill in an interview published Friday. “It always has been about jobs. I think the administration kind of got snookered talking about the deficit and the debt after the last election.”

Amidst growing economic anxieties, Harkin joined Senate Commerce Committee Chairman Jay Rockefeller (D-WV) in calling for additional stimulus spending in the form of a major infrastructure package.

“The last election was about jobs and the economy, and now we’re in a position where we really do need some economic pump-priming by the federal government,” Harkin told the paper.

Job creation in May was the lowest since last September as the unemployment rate rose to 9.1 percent. The Obama administration has — under intense pressure from Republicans — shifted its focus from job creation to deficit reduction this year, against the vocal objections of progressive economics and polls that say the public is far more concerned about jobs than the debt.

via Key Dem Senator: Obama ‘snookered’ by GOP into talking deficit over jobs | The Raw Story.

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June 14, 2011 · 1:02 pm

House Republicans Cut Food Assistance For Low-Income Families While Protecting Azaleas

I mean, I love azaleas, but really…..

From HuffingtonPost.com:

If you’re an azalea at the National Arboretum, you’re in luck — a Republican on the House Appropriations Committee is looking out for you. If you’re a woman, infant or child, however, you’re on your own.

Slipped into the FY 2012 agriculture appropriations bill that the House is expected to take up today is an unusual provision on page 13 requiring the National Arboretum to maintain a very specific portion of its azalea collection.

“The Committee directs the National Arboretum to maintain its National Boxwood Collection and the Glenn Dale Hillside portion of the Azalea Collection,” reads the bill. “The Committee encourages the National Arboretum to work collaboratively with supporters of the National Arboretum to raise additional funds to ensure the long-term viability of these and other important collections.”

While azaleas are being carefully tended to, the bill would cut $832 million from a program that provides food assistance to low-income mothers and children. The Center for Budget and Policy Priorities estimates that the reduction could result in as many as 475,000 people being turned away from the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) if food prices continue to rise.

“Everyday people across the country leave their homes in search of work, only to return at the end of the day with more worries and less hope,” said Rep. Sam Farr (D-Calif.), the agriculture subcommittee’s ranking member. “At a time that people continue to struggle to make ends meet, Republicans want to cut funding to food programs that are helping put food on the tables of those most in need.”

“Governing is about choices. It is clear where the House majority’s priorities lie — and it is not with those of the American people,” said Rep. Rosa DeLauro (D-Conn.), a strong WIC advocate, in a statement. “These cuts are unconscionable and will not only hurt families trying to survive, but also hurt our economy.”

“We understand that we have an obligation to get our fiscal house in order,” added Farr. “And Democrats are ready to work with our friends across the isle to make that happen, but not by discriminately targeting those most in need.”

Azalea upkeep isn’t the only unusual measure in the bill:

via House Republicans Cut Food Assistance For Low-Income Families While Protecting Azaleas.

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June 11, 2011 · 5:00 pm

How to Sabotage a Recovery – The Great Recession – Salon.com

I think History will identify this as the key mistake of the Obama Presidency:  Letting the GOP set the debate on cost cutting during a time we needed the government to invest to grow jobs and the economy.  It’s the same mistake FDR initially made…not to mention Herbert Hoover.  But FDR recovered and I’m still hopeful Obama will, too.

I’ve also finally decided the Republicans are nothing short of evil and are certainly unpatriotic.  They are almost reaching the point of treason in their quest to destroy the Middle Class.

Their goal really is to sabotage the Economic Recovery in order to gain Political Power- then to use that power only to serve the Rich and the Corporate Elite.  The GOP certainly isn’t focused on what is good for the Country as a whole…

And I don’t know what President Obama is thinking to let them get away with this…

I think he should start by listening less to Treasury Secretary Timothy Geithner and more to Nobel-Prize-Winning Economist Paul Krugman….

Or maybe do something novel, for Washington, like listen to the people.

Polls show the people want jobs, safe Social Security and Medicare and most don’t really give a damn about the deficits right now…

Only the GOP and the Tea Party are talking deficits…

From Salon.com:

Regarding the economy, Obama has let his opponents set the terms of debate, resulting in widespread public confusion. Consider, for example, the following two paragraphs from a recent Newsweek/Daily Beast article called “America the Angry”:

“By almost 4-to-1, Americans say our economy is not delivering the jobs we need, 81 percent to 12 percent.

“And Obama isn’t helping. Fifty percent of respondents think the president has no real plan to balance the budget; 40 percent say he does.”

Balance the budget during the worst economic downturn since the Great Depression? Should Obama repeat Franklin D. Roosevelt’s bad mistake of 1937, when “budget hawks” prevailed, very nearly stifling the New Deal?

That’s certainly what the GOP wants. Whether leading Republicans actually believe that returning to the economic practices of the 1920s would be good for the nation is hard to say. Some may be pretending.

The House’s freshman contingent appears sincerely misguided. New York Times columnist Nicholas Kristof asks sarcastically if what Tea Partyers want is a low-tax, limited government haven of conservative religious values like … Pakistan.

Not really. What most have in mind is something more like the Deep South of the 1950s — an imagined paradise with comfortable “aristocrats,” a timid middle class, and beaten-down peasants at each other’s throats.

Many of them probably saw “The Andy Griffith Show” as a documentary.

via How to sabotage a recovery – Great Recession | Economic Recession, Economic Crisis – Salon.com.

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June 2, 2011 · 7:23 am

How Fraudulent Is the GOP Budget Plan? It Wouldn’t Even Make a Dent In the Deficit! | | AlterNet

Interesting article from Alternet.

Alternet has so much interesting information, but I just wish it were better, more tightly written.

Maybe it’s my old school journalism background, but while I love the content, the writing style on this site drives me crazy….

Anyway, this is some great information on just how bad the Ryan Republican Budget really is….

The Republican budget plan is the purest expression of the Right’s longstanding desire to dismantle the social safety net. It’s not about the budget deficit—that’s simply a premise — it’s the “Shock Doctrine” in action.

How radical is it? According to an analysis by the non-partisan Center for Budget and Policy Priorities (CBPP), the plan would slash all public spending other than Social Security, Medicare and Medicaid by almost three-quarters by 2050. And because the “budget does not envision defense cuts in real terms,” what this means is that “most of the rest of the federal government outside of health care, Social Security, and defense would cease to exist.”

It’s the epitome of anti-tax zealot Grover Norquist’s fantasy of shrinking the government down to a point where he could “drown it in a bathtub.”

And it’s not just a matter of bait-and-switch; the entire proposal is a fraud. Just consider this: while selling their plan to the public as a “serious” and “bold” attempt to reduce the federal deficit, Republicans are overstating how much it would cut the budget gap by ten-fold.

via .

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June 1, 2011 · 11:23 pm

GOP Can’t Handle The Truth: Taxes Are Lower Under Obama Than Reagan

Republicans don’t handle truth or facts well…

One of the things they did learn from Reagan was how to use smoke and mirrors and a little Hollywood magic to conceal the truth…

From ThinkProgress.org:

That House Republicans find this preposterous is symptomatic of the hold Reagan mythology has over them. After all, for seven of Reagan’s eight years in office, the top tax rate was higher than the current 35 percent. In six of those years, it was 50 percent or more. And every year that Regan was in office, the bottom tax bracket was higher than the current ten percent.

For a family of four, the “average income tax rate under Reagan in 1983 was 11.06 percent. Under Clinton in 1992, it was 9.18 percent. And under Obama in 2010, it was 4.68 percent.” During Reagan’s time, income tax revenue ranged from 7.8 to 9.4 percent of GDP. Last year, it was 6.2 percent and is not projected to climb back to 9 percent until 2016. In fact, in 2009, Americans paid their lowest taxes in 60 years.

Republicans are very fond of saying that the U.S. has “a spending problem, not a revenue problem.” But the truth is that revenue has plunged due to the recession and to continued misguided tax cuts, and revenue needs to be raised to eventually bring the budget into balance. And Reagan knew that taxes were an important part of the budget equation. After all, he “raised taxes in seven of his eight years in office,” including four times in just two years.

via GOP Can’t Handle The Truth: Taxes Are Lower Under Obama Than Reagan | ThinkProgress.

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June 1, 2011 · 8:08 pm

Poll: GOP Medicare-Ending Budget Bigger Political Fumble Than First Thought

Like I’ve said, the Democrats are known for shooting themselves in the foot. But luckily the GOP just shot themselves in the head….

From TalkingPointsMemo.com:

It doesn’t take much political savvy to note that Rep. Paul Ryan’s (R-WI) Medicare-destroying budget plan hasn’t panned out all that well for the GOP. But a new poll out from advocates for the Democratic health care law shows that the Ryan budget fail goes even deeper than embarrassed presidential candidates and special election upsets.

Not only does the poll show huge opposition to Ryan’s plan to replace Medicare with a voucher system, the poll shows Democrats winning the credibility war when it comes to Medicare and “protecting the middle class.” And — in a jolt of good news for the White House and Democrats — the numbers show that when voters are given Ryan budget messaging from opponents, support for the Democratic health care law actually goes up slightly in response.

I’ve seen the same types of responses in several other polls today…..

Now, if the Dems just don’t cave in during the negotiations over the debt ceiling, they have a-  probably the- winning issue for the 2012 elections.

And the GOP has got to agree to increase the debt ceiling or Wall Street-who owns most of the government-  will have a nervous breakdown.

They really have no bargaining legs to stand on….

But that’s not stopped the Dems from caving in the past…

via Poll: GOP Medicare-Ending Budget Bigger Political Fumble Than First Thought | TPMDC.

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May 31, 2011 · 11:00 pm

Against Learned Helplessness – NYTimes.com

More wisdom from Paul Krugman…

He’s right…

As usual…

The voice of common sense in the wilderness.

Bear in mind that the unemployed aren’t jobless because they don’t want to work, or because they lack the necessary skills. There’s nothing wrong with our workers — remember, just four years ago the unemployment rate was below 5 percent.

The core of our economic problem is, instead, the debt — mainly mortgage debt — that households ran up during the bubble years of the last decade. Now that the bubble has burst, that debt is acting as a persistent drag on the economy, preventing any real recovery in employment. And once you realize that the overhang of private debt is the problem, you realize that there are a number of things that could be done about it.

For example, we could have W.P.A.-type programs putting the unemployed to work doing useful things like repairing roads — which would also, by raising incomes, make it easier for households to pay down debt. We could have a serious program of mortgage modification, reducing the debts of troubled homeowners. We could try to get inflation back up to the 4 percent rate that prevailed during Ronald Reagan’s second term, which would help to reduce the real burden of debt.

So there are policies we could be pursuing to bring unemployment down. These policies would be unorthodox — but so are the economic problems we face. And those who warn about the risks of action must explain why these risks should worry us more than the certainty of continued mass suffering if we do nothing.

In pointing out that we could be doing much more about unemployment, I recognize, of course, the political obstacles to actually pursuing any of the policies that might work. In the United States, in particular, any effort to tackle unemployment will run into a stone wall of Republican opposition. Yet that’s not a reason to stop talking about the issue. In fact, looking back at my own writings over the past year or so, it’s clear that I too have sinned: political realism is all very well, but I have said far too little about what we really should be doing to deal with our most important problem.

As I see it, policy makers are sinking into a condition of learned helplessness on the jobs issue: the more they fail to do anything about the problem, the more they convince themselves that there’s nothing they could do. And those of us who know better should be doing all we can to break that vicious circle.

via Against Learned Helplessness – NYTimes.com.

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May 30, 2011 · 9:00 pm

Eric Cantor On ‘Face The Nation’: Disaster Relief For Joplin Tornado Victims Must Be Offset

This guy really is a disgrace on so many levels….

Totally heartless…

On Sunday, House Majority Leader Eric Cantor (R-VA) reiterated his position that disaster relief funds for the tornado victims in Joplin, Missouri must be paid for with cuts to other programs. “Congress will find the money,” Cantor said on CBS’ “Face the Nation” “And it will be offset.”

“I know that America is just stunned by the scope of devastation and loss and the horrific tragedy that the people of Joplin and other places across the country really are experiencing this tornado season,” Cantor said. The federal government typically pays for disaster relief, but Cantor has said repeatedly that the government must maintain fiscal discipline. On Sunday, he compared the situation to that of a family putting off buying a new care when a family member became ill.

“When a family is struck with tragedy — like the family of Joplin … let’s say if they had $10,000 set aside to do something else with, to buy a new car … and then they were struck with a sick member of the family or something, and needed to take that money to apply it to that, that’s what they would do, because families don’t have unlimited money. And, really, neither does the federal government.”

Democratic lawmakers from districts hit by the storms have blasted Republicans for talking about the need to pay for an emergency package, HuffPost’s Jennifer Bendery reported:

“Where is his heart?” Rep. William Lacy Clay (D-Mo.) said of Cantor. “Where is his compassion for people who are suffering today?”

“If they want to fight and quibble over the supplemental, I mean, they are heartless. What’s wrong with them?” Clay said. “Nothing for the average American community. That’s what they’re saying: we don’t have anything for the average American community.”

via Eric Cantor On ‘Face The Nation’: Disaster Relief For Joplin Tornado Victims Must Be Offset (VIDEO).

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May 26, 2011 · 3:23 am

After Terrible Tornadoes, GOP Congressman Eric Cantor Won’t Allow Fed Disaster Relief

More on Mr Compassion, Eric Cantor, the Virginia GOP Congressmean, I mean Congressman…

From Wonkette:

This should play well in Missouri next year: House majority leader Eric Cantor (R-Meanie) has blocked federal disaster-relief help for Joplin, where an incredible storm and tornado killed at least 122 people and leveled much of the town. Police and firefighters and ambulance workers are still pulling victims from the rubble, and the Republican House is saying no help for these people from the federal government unless a bunch of programs the Republicans hate (all of them, except for defense industry no-bid contracts) are de-funded. Why not just wear monster masks and go around scaring babies, too?

via After Terrible Tornadoes, Eric Cantor Won’t Allow Fed Disaster Relief.

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