DSM Local

Saint Paul, MN

#1 Nov 26, 2012
As President Obama gets closer to making his deal with the Republicans on the budget, the most important thing to keep in mind is that the fiscal cliff is an artificially contrived trap. Were it not for the two Bush wars and the two Bush tax cuts and the House Republican games of brinksmanship with the routine extension of the debt ceiling, there would be no "fiscal cliff."

Rather, there would be a normal, relatively short-term increase in the deficit resulting from a deep recession and the drop in government revenues that it produces. When the economy recovered, the deficit would return to sustainable levels. In the meantime, these deficits are necessary and useful to maintain public spending as a tonic to the economy.

In addition, there are two entirely extraneous questions that do not belong in this debate -- whether Social Security requires any long-term adjustment to assure its solvency, and if so, what kind; and how to restrain the long-term growth in Medicare spending.

In fact, if we get can get back to full employment, there is no Social Security crisis, because Social Security is financed by taxes on payrolls. In the Clinton era, when we had full employment, the crisis kept receding. If we want a little extra insurance, we can lift the cap on income subject to payroll taxes.

Medicare spending is a long-term problem that requires major structural reforms. Reducing benefits or raising the eligibility age in the heat of an artificially contrived fiscal crisis is the wrong way to proceed. Obama's Affordable Care Act will keep Medicare at roughly its present level of spending relative to GDP -- too high, but not an imminent catastrophe.

The strategy of the right-wing has been to blur these several distinct issues into a single grand fiscal crisis, the better to reduce government spending and especially to cut Social Security and Medicare. The right-wing, in this case, is a two-headed beast. The Republican right-wing is mainly interested in defending tax cuts for the rich and reducing social spending generally, while the deficit hawks of the center-right want to achieve budget balance and weaken Social Security and Medicare. And since Social Security and Medicare are phenomenally popular, so much the better for the Republicans if they can trick the Democrats into sharing responsibility for the deed.

A further piece of mischief is the premise that we somehow need a 10-year budget deal that reduces the projected deficit by something like $4 to $5 trillion. We don't. What we need is an economic recovery. If we get a recovery with something close to full employment, the deficit naturally comes down as revenues to and current levels of public spending are entirely sustainable -- especially if we go back to the pre-Bush tax levels on the wealthy.
Fred

Saint Paul, MN

#2 Nov 26, 2012
I thank God that Romney didn't get elected - we'd be back to the failed Bush economic policies.
Bridework

Lincoln, NE

#3 Nov 26, 2012
No mention of the Obama tax cuts? All we need is near 0% unemployment? How much does the Bush tax cut for the wealthy and the 1 war impact our $1.4 trillion 2013 deficit?
Bridework

Lincoln, NE

#4 Nov 26, 2012
Fred wrote:
I thank God that Romney didn't get elected - we'd be back to the failed Bush economic policies.
Which of Bush's economic policies did Obama end?
Fred

Saint Paul, MN

#5 Nov 26, 2012
"How much does the Bush tax cut for the wealthy and the 1 war impact our $1.4 trillion 2013 deficit?"

I'm not sure but I think you are agreeing with me.

“The one and only Smart Liberal”

Since: Aug 12

Former MN Tax Payer

#6 Nov 26, 2012
Fred wrote:
"How much does the Bush tax cut for the wealthy and the 1 war impact our $1.4 trillion 2013 deficit?"
I'm not sure but I think you are agreeing with me.
He asked you a very legitimate question. But you are too stupid to understand that.
Bridework

Lincoln, NE

#7 Nov 26, 2012
Fred wrote:
"How much does the Bush tax cut for the wealthy and the 1 war impact our $1.4 trillion 2013 deficit?"
I'm not sure but I think you are agreeing with me.
What I am saying is that spending is not why we are $1.4 trillion short for 2013.

As I asked why no mention of the Obama FICA "holiday" which is not a loss of revenue, but actually a debt that is being borrowed from SS to be paid into SS. Also what about the child credits, AMT, and other tax breaks that are all part of this? It's almost like you are pretending that Obama and the Democrats did nothing in the last 4 years.
Smart Liberal

Minneapolis, MN

#8 Nov 26, 2012
Smart Liberal wrote:
<quoted text>
He asked you a very legitimate question. But you are too stupid to understand that.
And if anyone would nkow about stupid, it would be you and your multiple moniker attempt to feel superior.
fun

Andover, MN

#9 Nov 26, 2012
Oops, "university" man doesn't "nkow" how to spell! Who'da thunk!
fun

Andover, MN

#10 Nov 26, 2012
Smart Liberal wrote:
<quoted text>
And if anyone would nkow about stupid, it would be you and your multiple moniker attempt to feel superior.
Oops, "university" man doesn't "nkow" how to spell! Who'da thunk!

“The one and only Smart Liberal”

Since: Aug 12

Former MN Tax Payer

#11 Nov 26, 2012
fun wrote:
<quoted text>Oops, "university" man doesn't "nkow" how to spell! Who'da thunk!
That is funny, isn't it?
Smart Liberal

Minneapolis, MN

#12 Nov 26, 2012
I am the funniest guy on Topix. Just ask anyone, they'll tell you. Mostly because they areall me posting under different names. I have this compulsive need to be right and to be better. And I'm a compulsive liar.
Amused Slew

Seattle, WA

#13 Nov 26, 2012
Smart Liberal wrote:
<quoted text>
The term Gentile (from Latin gentilis, by the French "gentil", female: "gentille", meaning of or belonging to a clan or tribe) is used by English translators for the Hebrew, &#1490;&#1493;&#14 97; (goy) and &#1504;&#1499;&#15 12;&#1497; (nokhri) in the Hebrew Bible and the Greek word &#7956;&#952;&#957 ;&#951; (éthn&#275;) in the New Testament.
.
Lassie gibberish ....That is funny, isn't it?
Congrats to you, loser.

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