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teeray

Republicans preparing to hold country hostage for sake of electoral politics

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I understand that...but our economic growth is anemic. 

 

I know.  Part of that is because when in a recession you should be driving up deficits and debt as a government.

 

The best way to help in a recession is to drastically cut taxes and drastically increase spending.  That is what Reagan did.  Paul Ryan and just about anyone else agree that spending is crucial to stave off the effects of a recession.  Paul Ryan said as much in 2001.

 

But we put ourselves in a position between 2000 and 2008 that we could not do that.  Our wealthy is already way under taxed and make over 40% of total US income, they own over 70% of our total wealth, corporate profits are at an all time high, yet wages are stagnant and unemployment is high.

 

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So what would cutting their taxes achieve?  Probably little to nothing.  And the fact they are making this much money and profits are this high,  yet unemployment is remaining high and wages stagnant, that is a clear signal that raising taxes on the wealthy would not hurt the economy the way it might in other times in our history.  They already aren't doing anything with that money but inflating asset bubbles that will continue to pop again and again like it did in 1993 and 2008.

 

And because of the massive debts and spending under the previous administration we limited our ability to spend the amount we probably needed to spend in order to grow the economy at a faster rate.

 

Who is to blame for this?  Partly because of this:

 

On the offset question, the Medicare prescription drug bill, however, indisputably added to the federal deficit. It was not offset by new revenue or other spending cuts.

In contrast, the official government estimate of the 2010 health care law’s impact said it would actually reduce the deficit, in part because of the new taxes it enacts to help offset the cost of expanding health coverage.

The source for that is the nonpartisan Congressional Budget Office.

The CBO’s estimate is hardly undisputed -- Ryan, other Republican leaders and various budget analysts have argued that the CBO’s report was skewed by questionable assumptions given to it by the Obama administration. They contend the law would actually add to the deficit.

Nevertheless, we -- and Congress -- have used CBO estimates as the gold standard on such matters. So Obama has a pretty firm leg to stand on in saying his health bill was paid for while the Medicare bill was not.

 

http://www.politifact.com/wisconsin/statements/2011/apr/27/barack-obama/president-barack-obama-says-rep-paul-ryan-voted-wa/

 

 

That is in addition to the two unfunded wars and the Bush tax cuts between 2001-2008

 

So I agree it has been anemic.  But bad policy of the past has put us in a position where it is difficult to impossible to react with the types of policies that would spur growth at a faster rate.

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To make it easy on you G5:

 

Everything I have ever said here on how to dig out of a recession and get revenue and growth going again has been correct. Everything you have ever said on the subject is most likely wrong.

 

And it's not because I know anything you don't about economics; it's just that I listen to rational people with no axe to grind. You don't. It's that simple.

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At some point, a line in the sand has to be drawn and the ridiculous spending spree that our government believes in has to stop.

 

This is as good a time as any.

 

No, it's not. There are good times to do this but this is not one of them - if we had done the correct thing with the stimulus and not been hamstrung by the Republicans insane desire to kill the economy in a failed attempt to defeat Obama, this time would probably be a lot closer to happening now.

 

Maybe in a few years if we are lucky. A few more if we are not.

 

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From what I can tell, no one is actually entertaining cuts in spending... only cuts to increases.  The way these guys will work to get out is by fiat currency.  Kiss your savings goodbye.  Say you're sorry to your kids if you have any modicum of conscience.  

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They just work harder

Jeff Otah is wealthier than everyone on this board because of his work ethic

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Washington's version of cutting spending:

 

We are still going to spend more than last year, just not as much as we would like....that's called cutting.

 

 

Working stiff's idea of cutting spending:

 

We are not going to spend as much as last year.

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