Showing posts with label debt. Show all posts
Showing posts with label debt. Show all posts

Saturday, August 6, 2011

Economic Rumble USA

Neutral economic facts in America are hard to come by these days. On one hand, you have our liberal commentators, who say 40 million Americans are living on food stamps (~12% of the population) , and that the middle class is disappearing. This side tends to blame the 400 billionaries who "own" Congress, and says things like, "if you don’t have a job, it is in part because Cheney cut taxes on the super-rich and made it impossible for the Federal government to ameliorate the economic straits of the middle class with various programs. This problem just got worse, with the budget deal this year." So, the rich are to blame for all our problems, and "we increasingly look like a Third World robber baron country with a few rich at the top and luckless peasants toiling below."

The other side says "the rich create jobs and that taxing them would hurt the economy." Some conservatives even go so far as to say that it's the unemployed's fault they have no jobs, because "GDP is now higher than it has been in the entirety of U.S. history," so the 10+% unemployed we have now must just have been working useless jobs before. "The fact that the United States has pre-crisis levels of output with fewer workers raises doubts as to whether those additional workers were producing very much in the first place." They recommend the jobless retrain or otherwise adapt to our new society, because the old jobs are not coming back.

How can these two sides coexist? They seem to be completely at odds and both vilifying the other side. If your job was outsourced or downsized, and then you were told it's your fault, how would you respond? Similarly, if you could make more money with less workers, why would you hire more people?

Yet even with all this animosity, Americans show no sign of protest or revolution. Alternet has some theories that we're just too fearful, over-medicated, financially stressed, brainwashed, distracted or plain dumb to organize a fight.

The new budget only increases these problems, by preserving all tax breaks for the ultra-wealthy while cutting from everywhere else. Education, Medicare, Social Security, even the military are all up on the chopping block. Exact cuts still remain to be determined.

Instead, if we just undid the Bush-era tax cuts, we wouldn't have to cut so much other stuff:
But, can we raise taxes without fueling the class wars? Raising taxes actually doesn't scare millionaires away, and it might make more sense to tax the rich than the poor. Not only are the rich, well, RICH; they are the only ones benefiting from the current economic climate. If we try to tax the middle class that is already suffering or cut more benefits from the poor, we might finally find their breaking point.

Tuesday, July 26, 2011

America: Stubborn to a Fault?

Why hasn't the Budget committee been able to save us from default yet? CNN reports that political polarization is handicapping the U.S. government. "People have to cooperate for the system to work," but there are too many special interest groups now, all competing with one another. The current rules "encourage small interest groups - including ideologically charged ones - to capture major political parties as well as Congress itself." Anyone who doesn't pander directly to their supporters risks losing funding and votes.

Look at Representative Darrell Issa, Republican of California, who "gave an interview to the Wall Street Journal in which he suggested that he might further the conservative agenda through an occasional compromise. That provoked a tirade from Rush Limbaugh, which then produced a torrent of angry e-mails and phone calls to Issa's office. Issa quickly and publicly apologized to Limbaugh and promised only opposition to Obama."

Well, Americans don't like compromise, is this really any surprise? We are some of the most stubborn and single-minded citizens in the world. Just look at the original colonists, who created a new country rather than compromise with their leaders. And today look at our high divorce rates; we don't seem to compromise well on a social level either.

Sunday, July 24, 2011

SUPER CONGRESS

It's becoming more nightmarish to follow the U.S. Budget Negotiations. The August 2nd "doomsday" deadline is rapidly approaching. (Doomsday is when the Treasury loses borrowing ability and we risk a budget default.) And since bratty Congress hasn't been able to agree enough to pass anything, the "debt ceiling negotiators" have a new solution:

MAKE A SUPER CONGRESS !
What's so great about Super Congress? Well, they will be able to pass laws super-fast without having to be too accountable to the public. "This 'Super Congress'...isn't mentioned anywhere in the Constitution, but would be granted extraordinary new powers." Any new laws they approve will be fast-tracked through both chambers of "Little Congress" (our current House + Senate), where regular "little" lawmakers could not amend their laws, only give each an up or down vote. And those "little" votes are less powerful than today's votes. The proposed Super Congress only ever needs 51% to pass any law, and they don't need presidential approval (i.e. vetos have no effect on them).

So, does this sound like a good idea to you? It's not like the the regular Congress we have now is particularly heroic. I mean, Republicans want to extend the debt ceiling just long enough to have it fail pre-election season, while Democrats want to extend it just a little bit longer, till post-election. That's why they can't agree to pass something before financial doomsday. So now we're being held hostage to create a Super Congress to save us from disaster?

It feels more like a Super-Villain Congress. And I'm not the first person to think lawmakers with unlimited power would be dangerous. You've heard the saying that "absolute power corrupts absolutely?" Well, this whole message board seems to agree that "any new branch of government, especially one with 'extraordinary new powers' scares the hell out me. No thanks!"

Sunday, July 10, 2011

Cut Wealthcare

As the US tries to balance their budget, we have some words of advice from crazy liberal Senator Bernie Sanders: "The Republicans are suggesting that we balance the budget on the backs of the sick, the children, the elderly, the poor, [this] is morally unacceptable, and economically a very bad policy. Especially at a time when the richest people are becoming richer."

He also states that social security is paid for by it's payroll tax, and does not actually contribute to the national deficit. Is this true? I don't know because I'm not a budget expert. But I DO know that most liberal Americans don't want social benefits cut, they want THESE things cut:


In the words of one Keith Olbermann fan, "CUT WEALTHCARE, NOT HEALTHCARE."