A PRESIDENT OF THE PEOPLE
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Posted By: June Posted on: Feb. 17, 2009 at 10:29 AM  80 Comments
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Feb. 17, 2009 at 03:47:38 PM
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I agree with adam on one point - you can't spend your way outta poverty. The answer that seems to defy him is so simple - raise the fatcat taxes!Actually you can, if you are a federal government that prints its own money, and that currency -- remarkably -- remains the safe-haven relative to the other world currencies. Applying our personal finance situations to monetary and fiscal policy works most of the time, but there are exceptions. There are situations where the nation can do things, economically, that an individual cannot. In a sense, our fiscal limitations are similar to the limitations facing the 50 States. Most of these States have legal obligations to balance their budget. (Is it any surprise that over 22 Republican governors are for the Obama stimulus plan, while almost every self-serving Republican congressman opposes it?) Even if the states didn't have balanced-budget restrictions, who is going to extend a loan to them in this economic contraction? Likewise, individuals without credit either balance their budget or go bust. But the U.S. is in a different position. We do not face an imminent threat of default if we spend more than we make (and we have been doing this since Eisenhower). As long as other countries are willing to buy our debt, we can spend more than we make indefinitely, just as Republicans have preached since Reagan. The only problem is, we have to face the consequences of ever-increasing interest rates on each additional federal dollar borrowed . . . oh, and the occasional recession or depression. Eventually, without ultimately paying down our debt, this house of cards will topple; but not so long most of the rest of the world's large economies are doing even worse than we our. Just because we sparked the crisis, doesn't mean we'll suffer the greatest. We pushed many other innocent countries out of the window in front of us, and they might just cushion our fall. But getting back to the statement of not being able to spend your way out of poverty. In the special case of a deflationary spiral as it relates to our national economy, Keynesian economics says you can. In fact, that is the only way to break cycle and restart growth. We did it during the Great Depression, and we will have to do it again. We will have to bear the longer range consequences of paying down an even greater debt, but if we don't currently spark job growth, provide consumer credit, and pave the roads that our needed for future growth, we will never return to productivity in the first place. In depression economics, it doesn't matter if your debt is $10 trillion or $100 trillion; you can't pay back debt if your economy is stuck in the mud. Like it or not, we will have to spend the money to free our car from the mud, so we can get back to work. All the spending and borrowing we will do today to stimulate the economy and to complete long-overdue infrastructure investment will certainly come back to bite us tomorrow. But you have to pay the piper eventually, and we skipped out on the bill for far too long. Unfortunately we have two choices: a full-blown depression today that our children will likely inherit, or a painful but relatively short recession today and a probable recessionary aftershock that our children will likely experience as a consequence of avoiding a 21st century great depression. I am grateful that Barack Obama seems to understand this, although I wish he wouldn't dilute what is needed by placating the same supply-siders who brought us to this precipice in the first place. I am also grateful that tax-cutting, budget-hacking John McCain isn't the President. He would most certainly make Herbert Hoover look proactive in comparison. |
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Feb. 17, 2009 at 04:13:21 PM
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June this article just proved my point you are THE DUMBEST c*** I EVER HEARD.Who gives a s*** about obamas dreams and desire you lowly f***. Go away would ya. |
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Feb. 17, 2009 at 04:44:17 PM
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[This is a reply to comment by ObamaInCharge on Feb. 17, 2009 at 03:47:38 PM]
ObamaInCharge
Feb. 17, 2009 at 03:47:38 PM I agree with adam on one point - you can't spend your way outta poverty. The answer that seems to defy him is so simple - raise the fatcat taxes! Actually you can, if you are a federal government that prints its own money, and that... View this Comment Don't be an ant at the picnic, OINC - next you'll be telling us we're in good shape, citing the month-old gold and dollar rally and the declining Euro! I wanted to ease adam into reality - next time I'll be more circumspect.Thanks for setting the record straight. though - impressive work! |
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Feb. 17, 2009 at 04:52:25 PM
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[This is a reply to comment by know it All on Feb. 17, 2009 at 04:13:21 PM]
know it All
Feb. 17, 2009 at 04:13:21 PM June this article just proved my point you are THE DUMBEST c*** I EVER HEARD. Who gives a s*** about obamas dreams and desire you lowly f***. Go away would... View this Comment What an ingrate! KIA, please wash your hands - your s*** is leaching through your keyboard and coloring your comments! |
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Feb. 17, 2009 at 06:09:27 PM
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[This is a reply to comment by June on Feb. 17, 2009 at 04:52:25 PM]
June
Feb. 17, 2009 at 04:52:25 PM What an ingrate! KIA, please wash your hands - your s*** is leaching through your keyboard and coloring your... View this Comment Hey June, I think kiA is falling in love with you. I would advise you to stay away from him though. Rumor is -he has cooties. |
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Feb. 17, 2009 at 07:46:42 PM
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[This is a reply to comment by ObamaInCharge on Feb. 17, 2009 at 03:47:38 PM]
ObamaInCharge
Feb. 17, 2009 at 03:47:38 PM I agree with adam on one point - you can't spend your way outta poverty. The answer that seems to defy him is so simple - raise the fatcat taxes! Actually you can, if you are a federal government that prints its own money, and that... View this Comment moron lies when he says: . The answer that seems to defy him is so simple - raise the fatcat taxes! When HAVE I OPPOSED raising the fatcat taxes? I have posted that the MOST wealthy, get that way by an unequal use of our infrastructure and should contribute accordingly... I see that OBAMA is going to raise the fatcat taxes......maybe......someday... Probably when Summers, Gaithner and Gensler tell him that it is OK with them and Friedman |
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Feb. 17, 2009 at 07:51:08 PM
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| Yes, JuneWHORE, Obama is OBVIOUSLY a President of the PEOPLE..... People like Larry Summers, Gary Gensler, Tim o'thief Gaithner and Milton Friedman
How DO YOU justify whoring yourself out to HIM? |
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Feb. 17, 2009 at 08:32:24 PM
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[This is a reply to comment by adam on Feb. 17, 2009 at 07:46:42 PM]
adam
Feb. 17, 2009 at 07:46:42 PM moron lies when he says: . The answer that seems to defy him is so simple - raise the fatcat taxes! When HAVE I OPPOSED raising the fatcat taxes? I have posted that the MOST wealthy, get that way by an unequal use of our infrastructure... View this Comment Um Adam, that wasn't me who said that. |
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Feb. 17, 2009 at 09:10:24 PM
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[This is a reply to comment by adam on Feb. 17, 2009 at 07:51:08 PM]
adam
Feb. 17, 2009 at 07:51:08 PM Yes, JuneWHORE, Obama is OBVIOUSLY a President of the PEOPLE..... People like Larry Summers, Gary Gensler, Tim o'thief Gaithner and Milton Friedman How DO YOU justify whoring yourself out to... View this Comment Hey adam - what's your Merriam-Webster say about cooties? |
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Hell, repeal the Reagan tax cuts!
Yeah, then the other thing could be to go back to the Reagan tax code, at the end of his term. After he'd cut taxes, and then in 1986, when he closed all the loopholes. That change is what started increasing tax income for the Feds, with all the gentleman farmers' tax breaks going bye-bye, and corporations losing all their lobbyist powered deductions. Imagine if American businesses had to actually pay the 35% of the income in corporate tax, and not be able to use lobbyists to keep from paying their share.
Or if we change the tax code, so that it isn't better to ship jobs overseas, and then not pay taxes until the money is brought back.
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