Well, the global stock markets have responded to the "debt deal" with a quick downward slide. The Dow is continuing its plunge - now down 850 points over the past 8 days.
The basic fact in all this is that the US debt was never really the problem. This totally unnecessary crisis was created in whole cloth by Republicans. While the Republicans, led by their extremist right-wing, held the country hostage over the debt ceiling, no action was taken to solve the real economic problem - jobs. And now with "The Deal" taking huge amounts of government money out of the economy, there is little hope that jobs will be created any time soon. And until jobs increase, there will be no growth in the US economy. Enter the double-dip recession.
Obama's encouraging Business to create jobs and Congress to send him a jobs bill is a little like asking the burglars for whom you just opened the door to your home to help you with your gardening. Fat effin' chance. Let's face it - supply-side economics is in the driver's seat and it just doesn't work. Politically, Republicans will win both houses of Congress and the Presidency in 2012 if the economy doesn't improve. There is absolutely no political incentive for them to cooperate. So much for the effectiveness of the the Compromiser-in-Chief.
As usual Paul Krugman provided some excellent insight into The Deal in an August 1 NY Times article. After analyzing how The Deal fails on so many levels and is bound to lead the country into further economic problems, he concludes: "What Republicans have just gotten away with calls our whole system of government into question. After all, how can American democracy work if whichever party is most prepared to be ruthless, to threaten the nation’s economic security, gets to dictate policy? And the answer is, maybe it can’t."
Showing posts with label obstructionism Republicans taxes. Show all posts
Showing posts with label obstructionism Republicans taxes. Show all posts
Wednesday, August 3, 2011
Monday, August 1, 2011
They Just Don't Get It
The bargain struck by Obama and the Republicans averted a financial market disaster but at a price to the nation's well-being.
Once again the compromiser-in-chief was outmaneuvered by the right wing and came away with nothing other than a debt ceiling increase that will keep the country running through the 2012 elections. Good for Obama and the Republicans. Good for the wealthy and corporations.
Not good for the working class, the middle class, seniors, the unemployed, women and children who will be asked to shoulder the burden of the deficit reduction.
Not good for the economy as Obama will have no ability to grow jobs by public works programs. Not good for the economy because the totally discredited supply-side economics which haven't worked in 30 years continue not to work: manufacturing level is now at its lowest level in two years and the Dow is down 46 points as I write this. Basically the manufacturing data trumped the debt agreement.
It didn't have to be this way. Obama could have invoked the 14th amendment and gotten a "clean" debt ceiling increase - just has been done for the past four decades. Or he could have taken the trickle-down theorists to task - why not raise the income taxes on the wealthy and corporations and then provide income tax credits and payroll tax holidays to those who actually create jobs in the USA? If trickle down/ supply side economics works then surely they should have no objection. In the meantime we could use the increased tax revenues to provide more to those in our country who really need it and stop the continuing redistribution of national income to the wealthiest. Half of our income goes to the wealthiest 10 percent. Believe me - they can afford the increased taxes and still not go "mansionless".
Once again the compromiser-in-chief was outmaneuvered by the right wing and came away with nothing other than a debt ceiling increase that will keep the country running through the 2012 elections. Good for Obama and the Republicans. Good for the wealthy and corporations.
Not good for the working class, the middle class, seniors, the unemployed, women and children who will be asked to shoulder the burden of the deficit reduction.
Not good for the economy as Obama will have no ability to grow jobs by public works programs. Not good for the economy because the totally discredited supply-side economics which haven't worked in 30 years continue not to work: manufacturing level is now at its lowest level in two years and the Dow is down 46 points as I write this. Basically the manufacturing data trumped the debt agreement.
It didn't have to be this way. Obama could have invoked the 14th amendment and gotten a "clean" debt ceiling increase - just has been done for the past four decades. Or he could have taken the trickle-down theorists to task - why not raise the income taxes on the wealthy and corporations and then provide income tax credits and payroll tax holidays to those who actually create jobs in the USA? If trickle down/ supply side economics works then surely they should have no objection. In the meantime we could use the increased tax revenues to provide more to those in our country who really need it and stop the continuing redistribution of national income to the wealthiest. Half of our income goes to the wealthiest 10 percent. Believe me - they can afford the increased taxes and still not go "mansionless".
Friday, February 11, 2011
Going the Wrong Way
While the news cycle has been covering the turmoil in Egypt (Mubarak apparently has just left Cairo), there have been some domestic developments and non-developments that warrant mention.
Congress has not done anything to address the unemployment rate and increase jobs. Jobs creation in January was lower than expected. Much of this was likely due to the severe weather. Meanwhile, the House Republicans have done nothing on a jobs bill, contenting themselves with their ever-erroneous whining about the negative impact of government spending.
House Republican budget proposals (Note 1) have, as expected, shifted the burden of deficit reduction to women, children and the poor while simultaneously eliminating jobs creation programs.
(1) Apologies for the above link - it contains the self serving comments of the Republican chair but it effectively shows their priorities. For a good analysis of how these changes affect society's most vulnerable see the WonkRoom post at this link) :
- Changing House Rules to allow for unlimited, unfinanced tax cuts (i.e., pay as you go only applies to spending cuts)
- Cutting $2 billion from jobs training programs
- Cutting $1.1 billion from community health centers
- Cutting $1 billion from high speed rail, effectively eliminating numerous jobs
- Cutting $758 million from the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), which amounts to about a 6 percent cut to a program providing food assistance to low-income women and their infants.
– Cutting $210 million from Maternal and Child Health Block Grants, which amounts to about a 33 percent cut in a program giving low-income pregnant women, mothers and their children access to health care.
– Cutting $27 million from the Poison Control Center, which would essentially eliminate a program supporting local poison control centers and funding a hotline directing residents to their local poison control office.
Meanwhile the Obama Administration has moved to cut home heating subsidies to the poor by $2.5 billion and revise the rules on mortgages. The latter would require higher down payments and start to eliminate the role of Freddie Mac and Ginnie Mae, the traditional entry to home ownership for the middle class. Meanwhile, Obama's 2011 most recent foray into jobs creation has been to ask the Chamber of Commerce to (pretty please) step up to the plate and create jobs.
Are these people all crazy or what?
Here's the Obama - Biden plan for the economy. It's somewhat outdated but would be interesting to see how effective they will be in prioritizing and implementing the remaining elements of this.
Congress has not done anything to address the unemployment rate and increase jobs. Jobs creation in January was lower than expected. Much of this was likely due to the severe weather. Meanwhile, the House Republicans have done nothing on a jobs bill, contenting themselves with their ever-erroneous whining about the negative impact of government spending.
House Republican budget proposals (Note 1) have, as expected, shifted the burden of deficit reduction to women, children and the poor while simultaneously eliminating jobs creation programs.
(1) Apologies for the above link - it contains the self serving comments of the Republican chair but it effectively shows their priorities. For a good analysis of how these changes affect society's most vulnerable see the WonkRoom post at this link) :
- Changing House Rules to allow for unlimited, unfinanced tax cuts (i.e., pay as you go only applies to spending cuts)
- Cutting $2 billion from jobs training programs
- Cutting $1.1 billion from community health centers
- Cutting $1 billion from high speed rail, effectively eliminating numerous jobs
- Cutting $758 million from the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), which amounts to about a 6 percent cut to a program providing food assistance to low-income women and their infants.
– Cutting $210 million from Maternal and Child Health Block Grants, which amounts to about a 33 percent cut in a program giving low-income pregnant women, mothers and their children access to health care.
– Cutting $27 million from the Poison Control Center, which would essentially eliminate a program supporting local poison control centers and funding a hotline directing residents to their local poison control office.
Meanwhile the Obama Administration has moved to cut home heating subsidies to the poor by $2.5 billion and revise the rules on mortgages. The latter would require higher down payments and start to eliminate the role of Freddie Mac and Ginnie Mae, the traditional entry to home ownership for the middle class. Meanwhile, Obama's 2011 most recent foray into jobs creation has been to ask the Chamber of Commerce to (pretty please) step up to the plate and create jobs.
Are these people all crazy or what?
Here's the Obama - Biden plan for the economy. It's somewhat outdated but would be interesting to see how effective they will be in prioritizing and implementing the remaining elements of this.
Sunday, December 5, 2010
Boehner McConnell and Chicken Crap
It was hilarious to listen to John Boehner call Thursday's House vote to extend middle class tax cuts “chicken crap”.
No Mr. Boehner, what is chicken crap is the Republican obstruction of any meaningful legislation whether it is national defense (START), help for the unemployed (expiring unemployment benefits), or stimulus for jobs creation.
What is chicken crap, Mr. Boehner, is Mitch McConnell’s letter signed by 42 Republican Senators that they will block any legislation that is put forward before the tax cuts for the wealthiest two percent of the country is extended.
What is chicken crap, Mr. Boehner, is standing in the way of legislation that will help this country emerge from the recession and placing politics above the good of the people so that the right wing can limit President Obama to a single term.
What is chicken crap and totally counter-intuitive, Mr. Boehner, is demanding deficit reduction while also demanding that the highest impact item on the deficit - the extension of the Bush high end tax cuts - be passed.
The argument for the high end tax cuts is that this will spur the economy - well it hasn’t ever done this since this misguided “trickle down” economics first raised its ugly head in the Reagan era. As Warren Buffett pointed out in an interview with ABC last month: "The rich are always going to say that, you know, 'Just give us more money, and we'll go out and spend more, and then it will all trickle down to the rest of you.' But that has not worked the last 10 years, and I hope the American public is catching on."
No Mr. Boehner, what is chicken crap is the Republican obstruction of any meaningful legislation whether it is national defense (START), help for the unemployed (expiring unemployment benefits), or stimulus for jobs creation.
What is chicken crap, Mr. Boehner, is Mitch McConnell’s letter signed by 42 Republican Senators that they will block any legislation that is put forward before the tax cuts for the wealthiest two percent of the country is extended.
What is chicken crap, Mr. Boehner, is standing in the way of legislation that will help this country emerge from the recession and placing politics above the good of the people so that the right wing can limit President Obama to a single term.
What is chicken crap and totally counter-intuitive, Mr. Boehner, is demanding deficit reduction while also demanding that the highest impact item on the deficit - the extension of the Bush high end tax cuts - be passed.
The argument for the high end tax cuts is that this will spur the economy - well it hasn’t ever done this since this misguided “trickle down” economics first raised its ugly head in the Reagan era. As Warren Buffett pointed out in an interview with ABC last month: "The rich are always going to say that, you know, 'Just give us more money, and we'll go out and spend more, and then it will all trickle down to the rest of you.' But that has not worked the last 10 years, and I hope the American public is catching on."
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