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Soon-to-be president Barack Obama, facing the worst national economic conditions in over 60 years, said two days ago that chances were high that the U.S. would face “trillion-dollar deficits for years to come.”
I'm not going to plumb the depths of Republican dominated economic policies in recent years that have left us with such dim prospects for the near future. Deregulation, lack of oversight and the cronyism and ideology that catalyzed that lack, dependence on free market economic industry leaders to do the right thing, reckless and deep tax cutting while conducting expensive wars of choice, and the great heist know as TARP 3 months before an eight year long campaign to double the national debt ends.....have all directly led to Obama's predictions of "trillion dollar deficits for years to come."
In short, we didn't simply wake up one day and discover that we're in trouble. The coming economic malaise was years in the making.
Pointing, correctly, to his mandate from American voters, Obama briefly touches on how we arrived at our current crisis situation....
“When the American people spoke last November, they were demanding change — change in policies that helped deliver the worst economic crisis that we’ve seen since the Great Depression..."
Now, even blood red economic conservatives are saying stuff like this...
“Because monetary policy is not effective, reviving the economy requires a major fiscal stimulus from tax cuts and increased government spending,” said Martin Feldstein, a Harvard University economics professor and former chief economic adviser to President Ronald Reagan profiled in today’s Journal. “It pains me to say that because I am a fiscal conservative who dislikes budget deficits and increases in government spending.” Link
"It pains me to say that".....is rich, isn't it? Especially considering the fact that EVERY GOP president in the last 30 years ran up big deficits. Was it painful all those times, too?
But I disagree on the tax cutting part. And, I am greatly disappointed that Obama's plan, apparently, is ratioed 40% tax cuts, 60% spending. If tax cutting provides stimulus, where is the evidence from the last eight years of...umm...historic tax cutting?
As I see it, the downward spiral we're now in was brought about by a need for liquidity. Too much borrowing and incentivizing to borrow, both personally and collectively, the psuedo-pyramid gambling program played out on Wall Street using impossible-to-appraise assets (sh*t loans), and the irresponsible period in the early 00's when Greenspan kept interest rates too low and for too long....have all combined to create a perfect-storm collapse. The storm hit, assets had to be sold, causing the markets to spiral downward, further degrading asset values and leading to our largest current problem.....UNEMPLOYMENT.
Almost 700,000 new job losses in December. We need job creation....and tax cutting won't create jobs. If tax cutting created jobs, then with the record tax cuts of the last 8 years, we should have expected an avalanche of new jobs to follow. Didn't happen.
Critics will criticize this but....so what?....We need a stimulus package of a trillion dollars, 80% of which goes directly to job creation. The balance can go to states for unemployment, food stamps, etc. While we're waiting out the hangover caused by an orgy of greed and reckless leadership at the top.....the American people need jobs.
I'm not optimistic.
U.S. Chamber of Commerce president, Thomas Donahue...
"We've got to be very, very careful that we don't make a larger government,"
"The deficit estimate makes it clearer than ever that we cannot borrow and spend our way back to prosperity when we're already running an annual deficit of more than $1 trillion," said Rep. John Boehner, R-Ohio, the House Republican leader.
President of the Committee for a Responsible Federal Budget, Maya MacGuineas....
"Policymakers simply must put together a plan to assure the nation's creditors, as well as taxpayers, that there is a plan to repay this tremendous amount of borrowing once the economy has stabilized." Link
But Republicans and some fiscally conservative Democrats have expressed concern that the need for a substantial economic stimulus plan could sweep away for years any serious effort to bring government spending into line with its revenues. Link
George and Dick virtually doubled our national debt in 8 years through deficit spending. Only crickets from patriotic conservatives.
Now, huge deficits created by conservatives simply can't and won't be tolerated by these same sanctimonious pricks. The immediate and obvious goal of sanctimonious conservative pricks is to stall and limit Obama's plan, wait for the depression, then blame it all on Democrats.
Gonna' be a lot of fun.