About This Blog
Atrios at the EschatonBlog is a master of quick hitters....
The additional maddening thing is that if you fix the jobs problem you largely fix the deficit problem. The reverse is not true. If you "fix" the deficit you kill the jobs.
That is precisely correct. Focusing on reducing the nation's deficit and debt by slashing federal spending, entitlements, etc. will only make our nation's jobs problem....worse. Less money being spent by the government equals less money circulating in the economy......which means fewer jobs. As we have found out here on the blog....consumers with money and credit in hand are the only real job creators. If our job creators don't have jobs and/or money/credit, they can't create jobs with their purchases.
If we follow the Republican plan (also accepted by some Democrats and partially by Obama) and cut, cut cut federal spending and slash popular programs for America's geezers right now.....then, Americans will have less money, fewer jobs and the deficit and debt will only grow larger.
If our elected leaders chose to spend MORE money right now while borrowing rates are basically zero....more jobs would be created and the deficit would take care of itself.
Given those two realities....which plan should our nation's leaders promote?
Republicans not only would slash all non-Empire-building spending, but they would also shut down the federal government and default on the nation's debt. Re-read that last sentence. Yes, that's exactly what Republicans are stating...and stating clearly. If you are paying attention, the Republicans are slowly talking themselves into a "partial" shutdown of government and a "partial" default on the debt. Akin to being "partially" pregnant.
Everything that Republicans would do.....would make our debt, economy and employment problems...worse. If Republican wishes were granted.....our national economy would plummet into a renewed recession with all the extra misery that comes with it. In addition, the deficit and debt that Republicans are oh-so-very worried about....would increase, not decrease. Like Atrios said...if you "fix" the deficit you "kill" jobs.
Slashing federal spending kills jobs. Killing jobs reduces federal revenues. Reduced federal revenues equal higher deficits. What Republicans advocate for....whether they realize it or not....is higher deficits and debt......plus the added bonus of more misery for American families.
This makes sense...how?
Then, what gives? To try to answer that question, I direct your attention to what Wisconsin GOP Senator Ron Johnson told CNN's Ali Veschi over the weekend. Johnson argued that there was no need to raise the debt limit and that the federal government could meet almost all of it's financial obligations without that nearly one trillion we've been borrowing each year.
When Veschi pointed out that, after all is said and done, the feds are still about a trillion short of paying the bills, here's how Johnson thought we should handle that problem....
JOHNSON: Now if you actually utilize the Social Security trust fund to make the Social Security payments, that's another $775 billion. So now you're up to revenue of over $3.2 trillion. Basically you're funding all of government. And that's why we need to take a look at this. We -- I don't want to play brinksmanship. We should make sure that we can fund as much of government as revenues coming in.
Johnson proposes using the current SS revenue stream from payroll tax collections to pay for other federal government spending instead of using SS receipts to pay current SS recipients. Johnson would then "utilize" nearly a trillion, yearly, from the SS Trust Fund to pay SS checks.
That would deplete the SS Trust Fund in a couple three years, forcing a crisis in the most popular federal program. A forced crisis in SS would then lead Republicans (and many Democrats) to "reform" SS.....a program fully funded until at least 2030 without doing anything.
Let me suggest that that is the objective. Gutting SS is of utmost importance to Wall Street-serving elected officials. Wall Street really, really wants to get its hands on the SS revenue stream......you know, skimmers gotta skim.
If SS is gutted, privatized or welfarized.....then there is hope for lower tax rates in the future on the top 1% of income hoarders. If entitlements are kept in tact and not gutted, slashed, privatized or welfarized,.....then there is little hope for the top 1% that there tax rates could be lowered....at least not in any forseeable future.
That is what the huffing and puffing is all about.....harming entitlement programs for the elderly....programs which Americans paid into all of their working lives....to clear the way for even lower tax rates on the wealthiest.
Shameless AND immoral.
- 2013 (113)
- 2012 (265)
- 2011 (254)
- 2010 (274)
- 2009 (302)
- 2008 (331)
- 2007 (305)