Tag Archives: Budget Deficit

Deconstructing Deficit Hawks

I do love it when a Nobel Prize-winning Economist says the same things I do….

Or rather, when my thoughts I align with his….

Since I only took 2 semesters of Econ at Washington and Lee, I can hardly claim to be an expert….

Except in common sense….

Please take the time to read Paul Krugman’s article in the New York Times.

Here is a brief excerpt and a link to the full article:

So what do we learn from the rather pathetic search for austerity success stories? We learn that the doctrine that has dominated elite economic discourse for the past three years is wrong on all fronts. Not only have we been ruled by fear of nonexistent threats, we’ve been promised rewards that haven’t arrived and never will. It’s time to put the deficit obsession aside and get back to dealing with the real problem — namely, unacceptably high unemployment.

via Looking for Mr. Goodpain – NYTimes.com.

Leave a comment

Filed under Politics, Uncategorized

If Congress Left For 536 Days (Like Belgium), It Could Almost Eliminate The Deficit

This is probably the best we could hope for…

The Republicans are going to block anything positive….

But, at least the GOP couldn’t do any more damage….

From ThinkProgress.org:

 

While Republicans and Democrats continue to fight over how to reduce America’s debt and deficits — moving from near-government shutdowns to failed super committees and opposition to both spending cuts and tax increases — the government of Belgium may have inadvertently provided Congress with an example of how to fix the problem: do absolutely nothing.

After 536 days without a government, Belgian opposition parties struck a deal today to form a new coalition led by Socialist Elio Di Rupo. On this side of the pond, 563 days without any congressional action on fiscal or budgetary measures would go most of the way toward achieving the deficit reduction Congress is longing for. As Center for American Progress Director of Tax and Budget Policy Michael Linden has pointed out, if Congress were do to nothing between now and January 2013 (just 397 days from now), the federal budget deficit would fall to just 1.6 percent of gross domestic product and continue dropping after that:

Similarly, debt as a share of GDP would fall to just 61 percent by 2021:

Such reductions would take place primarily due to the expiration of the budget-busting Bush tax cuts, which cost roughly $2.5 trillion over 10 years. The spending cuts triggered by the inability of the supercommittee to reach a deal would also take place, and multiple policies that Congress generally kicks down the road, like the alternative minimum tax, would also take effect.

Of course, there are policies Congress could enact to actually help unemployed Americans and the struggling economy, like passing laws that would create jobs and stimulate growth while addressing much-needed improvements in infrastructure and other areas. But if the goal is only to reduce debt and deficits, perhaps it’s better if members take their cue from the Belgians and just go home for a year or two.

via CHART: If Congress Left For 536 Days (Like Belgium), It Could Almost Eliminate The Deficit | ThinkProgress.

Leave a comment

Filed under Politics, The Economy

Elizabeth Warren and the Social Contract

The more I see of Elizabeth Warren, the more I love her….

She is one smart – brilliant- woman and I hope to God she gets elected to the Massachusetts Senate seat so she has a platform to run for President in 2016.

I also love that she talks about the Social Contract.  I was thinking I was the only one left who believed there was such a thing….

We desperately need more politicians like Elizabeth Warren…

Leave a comment

Filed under Congress, Elections, Politics, The Economy, Uncategorized

FALLING OUT OF THE MIDDLE CLASS: A Statistical Look At The People Who Have Lost The Most

It’s becoming an accepted probability, for the first time in our history that, in financial terms, children will probably not do as well as their parents.

Thanks to Republican policy since Reagan-with notable assists from the Dems on many occasions, thanks to the decline of Unions, thanks to the loss of well paying manufacturing jobs, thanks to declining educational standards, thanks to our contaminated food supply, thanks to the redistribution of wealth to the top 1%, thanks to a lot of poor decisions by a lot of people….

 

This puts some numbers around who is most likely, demographically speaking, to have been pushed out of the Middle Class– so far.

From YahooNews.com.  Hat Tip to my friend Kirk for sending me the article:

 

The American Dream of upward social mobility has stalled for some people, according to a big new study from Pew.

The study checked in on a bunch of middle class teenagers from 1979 to see how they were doing 25 years later. Notably this survey was performed before the Great Recession, so most of these numbers would be worse today.

Pew found that 28% of the sample group had fallen out of the middle class. This number was significantly higher for certain demographic groups including divorced women and black men.

Divorced women are 35.8% more likely to have fallen out of the middle class.

Divorced men are 13% more likely to have fallen out of the middle class.

Unmarried women are 17.6% more likely to have fallen out of the middle class.

Unmarried men are 10% more likely to have fallen out of the middle class.

Black men are 17% more likely to have fallen out of the middle class (vs white men).

Black women are 5% more likely to have fallen out of the middle class (vs white women)

Women without a college degree are 16.3% more likely to have fallen out of the middle class.

Men without a college degree are 7.5% more likely to have fallen out of the middle class.

Hispanic men are 8% more likely to have fallen out of the middle class (vs white men).

Hispanic women are actually 2% less likely to have fallen out of the middle class (vs white women).

via FALLING OUT OF THE MIDDLE CLASS: A Statistical Look At The People Who Have Lost The Most | Daily Ticker – Yahoo! Finance.

Leave a comment

Filed under Education, Elections, Politics

Republicans = Casey Anthony

More great Bill Maher.

Why is it that it seems that only those who agree with him, listen to him?

I wish all the people who freaked out over the Casey Anthony verdict would pay similar attention to the murder of the Middle Class by the Republicans. It’s a tragedy that one little girl died, but I never quite got the mass hysteria that America felt over that one case.

It’s a greater tragedy that the Republicans are getting away with destroying the Middle Class-and those they are killing still vote for them.

As P.T. Barnum said, “There is a sucker born every minute.”

3 Comments

Filed under Politics

Eric and Irene: Have you left no sense of decency?

Great article from Paul Krugman on Eric  Cantor and his evil ways.

In case you missed it, Cantor now wants to require all disaster aid for Hurricane Irene be off set by budget cuts…

As Krugman says, he’s holding Irene’s victims hostage.  The good news is that George Allen, the probable GOP Senate nominee supports him and his position.  I hope they go down together.

I just can’t quite figure out how my birth state can justify electing people like this….

Back in the day, people who showed such callousness and disregard for people in trouble would have been shunned…

It’s no longer the gracious, genteel Virginia I once knew.

 

 

“Have you left no sense of decency?” That’s the question Joseph Welch famously asked Joseph McCarthy, as the red-baiting demagogue tried to ruin yet another innocent citizen. And these days, it’s the question I find myself wanting to ask Eric Cantor, the House majority leader, who has done more than anyone else to make policy blackmail — using innocent Americans as hostages — standard operating procedure for the G.O.P.

A few weeks ago, Mr. Cantor was the hard man in the confrontation over the debt ceiling; he was willing to endanger America’s financial credibility, putting our whole economy at risk, in order to extract budget concessions from President Obama. Now he’s doing it again, this time over disaster relief, making headlines by insisting that any federal aid to the victims of Hurricane Irene be offset by cuts in other spending. In effect, he is threatening to take Irene’s victims hostage.

Mr. Cantor’s critics have been quick to accuse him of hypocrisy, and with good reason. After all, he and his Republican colleagues showed no comparable interest in paying for the Bush administration’s huge unfunded initiatives. In particular, they did nothing to offset the cost of the Iraq war, which now stands at $800 billion and counting.

And it turns out that in 2004, when his home state of Virginia was struck by Tropical Storm Gaston, Mr. Cantor voted against a bill that would have required the same pay-as-you-go rule that he now advocates.

But, as I see it, hypocrisy is a secondary issue here. The primary issue should be the extraordinary nihilism now on display by Mr. Cantor and his colleagues — their willingness to flout all the usual conventions of fair play and, well, decency in order to get what they want.

via Eric and Irene – NYTimes.com.

Leave a comment

Filed under Congress, Politics

Why Republicans Might Demand Hurricane Relief Be Paid For With More Program Cuts

I do hope people are paying attention to these Republicans.  Some of them are even arguing the Federal Government should have NO role in disaster cleanup and that it’s a “state” issue.

I somehow don’t think most Americans- and even Republican Governors- will agree with that stance.

This is unheard of-debating whether we can afford to respond to natural disasters. And frankly, I think, totally contrary to the “American” and “Christian” principles of “helping your neighbor” these guys traditionally espouse.

It will be interesting to see how this plays out…..

From TalkingPointsMemeo.com:

When a massive tornado obliterated the town of Joplin, Missouri earlier this year, House Majority Leader Eric Cantor (R-VA) told reporters that if the disaster ultimately required the government to step in and provide aid, it would have to be offset by cutting spending on other federal programs.

“If there is support for a supplemental, it would be accompanied by support for having pay-fors to that supplemental,” he said, using the anodyne language of budget policy.

Three months later, when a modest earthquake struck the town of Mineral, Virginia in his own district, and caused minor, but widespread damage along the eastern seaboard, Cantor upheld the standard. Congress, he said, “will find the monies” to help victims, but that “those monies will be offset with appropriate savings or cost-cutting elsewhere.”

Now, in the wake of Hurricane Irene — a much costlier natural disaster — Cantor may make the same demand, which could touch off a bitter fight on Capitol Hill.

“We aren’t going to speculate on damage before it happens, period,” his staff told me Thursday when I asked about the impending storm. “But, as you know, Eric has consistently said that additional funds for federal disaster relief ought to be offset with spending cuts.”

This is a big problem. The budget is already stretched very thin, and even Cantor has asked his members not to provoke another fight about cutting spending beyond its already agreed-upon levels. And if clean-up costs reach into the billions, paying for it by cutting spending will damage other important services, despite the fact that the usual standard is to not use natural disasters as political bargaining chips.

Three things are going on here by my count. First, Republicans have learned an obvious lesson since they retook the House — that they can control the agenda in Washington, and put popular government programs under attack, if and only if they have some leverage over Democrats to play along. The government shutdown fight in April was their first victory. The debt limit showdown was their piece de resistance.

Second, there are political pitfalls to this approach, particularly when it requires Republicans to publicly stake out specific positions. Cutting government spending might focus group well, but privatizing Medicare does not, as Republicans learned quite painfully earlier this year. This augurs for slashing spending in nebulous ways — capping discretionary spending, and spreading the cuts out across myriad federal programs; or promising to “find monies” in the budget to offset new expenses. Death by a thousand, invisible cuts.

Third, the right flank of the Republican party expects no less. In 2005, after Hurricane Katrina devastated southern Louisiana, Cantor’s predecessor, Rep. Tom DeLay (R-TX) claimed Republicans had pared discretionary spending back enough that federal aid could be financed with new debt. He came under attack from members of his own party and quickly reversed himself. Looks like Cantor learned his lesson.

But it’s a difficult line to walk. Part of what made Republican victories in the shutdown and debt limit fights plausible was a logical veneer that doesn’t exist here. “We spend too much money on government programs,” Republicans basically argued, “so we won’t fund the government unless we impose discipline.” Another line was, in effect: “The national debt has skyrocketed, so we won’t allow the government to incur more of it unless steps are taken to hold down its growth.” When you drilled into these arguments, they crumbled, but at a glance they were quite plausible.

That’s not the case after a natural disaster. And if there’s a loud cry for federal aid once the damage is assessed, Cantor’s position will probably prove unsustainable.

via Why Republicans Might Demand Hurricane Relief Be Paid For With More Program Cuts | TPMDC.

Leave a comment

Filed under Natural Disasters, Politics

France Introduces New Tax on High Incomes- At the Request of the Rich

Another reason to love the French…

This is an example of how you should handle deficits- both as a government and as a citizen.

This U.S. Congress is doing all it can to protect its millionaires from paying their fair share while taking more and more from the Middle Class and the poor.

The French also know a little bit about how nasty class warfare can become when the Rich have too much and flaunt it too openly.  They learned the hard way, it’s best to all pull together in the spirit of equality and solidarity.

I don’t want to hear a damn thing about “freedom fries”….

Viva la France!

 

 

The French government is to impose an extra tax of 3% on annual income above 500,000 euros (£440,000; $721,000).

It is part of a package of measures to try to cut the country’s deficit by 12bn euros over two years.

The tax increase came after some of France’s wealthiest people had called on the government to tackle its deficit by raising taxes on the rich.

Paris has also reduced its economic growth forecast for 2012 to 1.75% from a previous 2.25%.

‘Rigorous’

And it has cut its 2011 growth forecast from 2% to 1.75%, Prime Minister Francois Fillon has said.

He said the new tax would remain in place until France reduces its budget deficit back under the EU’s intended limit of 3% of GDP, which should occur in 2013.

France plans to trim its public deficit to 5.7 % this year, 4.6 % next year and 3% in 2013.

“This is a rigorous policy that will allow France to remain relaxed,” Mr Fillon said. “Our country must stick to its [deficit] commitments. It’s in the interest of all French people.”

Faced with flat growth, the persistent threat to the country’s precious AAA rating, and all sorts of turmoil on the nervous financial markets, President Sarkozy is wielding the axe.

In total he’s proposing 12bn euros of savings over the next two years.

Higher taxes for big companies, a cap on tax deductions applying to overtime – and a new “special contribution” from the wealthiest in the country.

It’s a U-turn – in so many ways – designed to reassure investors and voters alike that only he can be trusted with the French economy.

Sixteen executives, including Europe’s richest woman, the L’Oreal heiress Liliane Bettencourt, had offered in an open letter to pay a “special contribution” in a spirit of “solidarity”.

It appeared on the website of the French magazine Le Nouvel Observateur.

It was signed by some of France’s most high-profile chief executives, including Christophe de Margerie of oil firm Total, Frederic Oudea of bank Societe Generale, and Air France’s Jean-Cyril Spinetta.

They said: “We, the presidents and leaders of industry, businessmen and women, bankers and wealthy citizens would like the richest people to have to pay a ‘special contribution’.”

They said they had benefited from the French system and that: “When the public finances deficit and the prospects of a worsening state debt threaten the future of France and Europe and when the government is asking everybody for solidarity, it seems necessary for us to contribute.”

They warned, however, that the contribution should not be so severe that it would provoke an exodus of the rich or increased tax avoidance.

via BBC News – France introduces new tax on high incomes.

6 Comments

Filed under Congress, Elections, Politics, The Economy

$230,000 For a Guard Dog: Why the Wealthy Are Afraid Of Violence From Below

Well, at least the Rich have a realization that a little resentment may be building among the rest of the country.

Of course, they don’t seem to be channeling this in a positive direction by giving back to society.  No, they are looking to live in armed camps and hang on to every penny.

I guess maybe they do realize that eventually people may be fed up with them rigging the system in their favor and forcing the little guys and gals to pay for it by giving up luxuries like food, Social Security, Medicare and housing so they can keep their jets and yachts.

Those fools in the Tea Party just may turn nasty once they realize they’ve been used….

From Alternet.com:

 

In addition to security systems, dogs and armed yachts, the security-conscious oligarch can hire a private spy company—Jellyfish, a spinoff of the notorious private security company Blackwater. Or what about their own personal drone? “Smaller, private versions of the infamous Predator” may be coming to well-heeled private citizens near you, according to the UK’s Daily Mail. So far the private drones appear to only be for spying, but former Navy fighter pilot Missy Cummings told the Daily Mail, “It doesn’t take a rocket scientist from MIT to tell you if we can do it for a soldier in the field, we can do it for anybody.”

So why are the rich getting paranoid? After all, here in the U.S. it looks like they don’t even have to worry about their taxes returning to Clinton-era levels, let alone cope with a truly significant change to their lifestyles. Still, as the rich get richer, it seems, they get more and more worried about the rest of us coming for their wealth—and they’re out to protect it by any means necessary.

David Sirota has noted that “we’re fast becoming a ‘let them eat cake’ economy,” where ostentatious displays of wealth and arrogance seem to be an everyday occurrence as the rest of the country suffers. A private jet traffic jam was big news in the New York Times last week, because the children of the uber-rich have to get to a Maine summer camp, and driving just won’t do. Maine’s Tea Party governor, Paul LePage, took some time off from limiting access to the vote and picking fights with organized labor to gloat over the jet traffic:

“Love it, love it, love it,” Mr. LePage said of the private-plane traffic generated by summer camps. “I wish they’d stay a week while they’re here. This is a big business.”

While the private jet crowd is “big business,” the rest of Maine—and the country—is still suffering. And maybe that’s where the fear comes in.

We’ve seen revolution in Tunisia and Egypt, attempts in Libya, Syria, Yemen, unrest in Greece and Spain, student protests in England, and here at home the occupation of the capitol in Madison, Wisconsin. While nothing yet in the U.S. has approached the level of organized attacks on the wealthy by the have-nots, since the financial crash even the hint that perhaps private jet owners could pay a few more dollars in taxes has been decried as class war. A few protests that actually dare approach the doorsteps of the bankers appear to be all it takes to stoke paranoia among the super-rich.

via $230,000 For a Guard Dog: Why the Wealthy Are Afraid Of Violence From Below | | AlterNet.

Leave a comment

Filed under History, Politics, The Economy

%d bloggers like this: