If you want to lower the deficit...

[Spexxvet]

Interesting, from New York Times columnist David Leonhardt.

So here's a little rule: If you want to be taken seriously when you rail against the deficit, you need to support one of the following four policies. Better yet, support more than one.

Ready for the four? One, cuts to Medicare. Two, cuts to Social Security. Three, military cuts. Four, tax increases. Any budget expert will tell you that we simply cannot fix the deficit without doing at least one of those four.

http://marketplace.publicradio.org/d...r-the-deficit/

[Undertoad]

The health care bill is supposed lower Medicare costs next decade.

The GOP wants to repeal that part though.

[classicman]

One, cuts to Medicare. (Gotta do it right though - whatever that is)
Two, cuts to Social Security. (Dunno how to do this effectively)
Three, military cuts. No question - MUST happen.
Four, tax increases. (If need be, then its gotta be on EVERYONE. We all must share. Removing some loopholes/deductions would be a good start.)

[Undertoad]

Any budget expert will tell you that we simply cannot fix the deficit without doing at least one of those four.

Actually this is wrong. Economic growth would cut the deficit faster than any other factor. This is one reason why, in many economic conditions, decreased tax rates lead to higher tax revenues.

[tw]

Originally Posted by Undertoad

This is one reason why, in many economic conditions, decreased tax rates lead to higher tax revenues.

So why did Clinton fix the economy by doing the opposite?

Every dollar in tax cuts results in about $0.70 in economic improvement. The only thing that creates long term economic growth is balanced budgets. Diminished short term growth and increased long term growth.

After a decade of George Jr tax cuts, what did we get? The worst recession since 1929. To keep his ponzi scheme working, George Jr had to keep implementing tax cuts and other welfare to the rich. Just like the Kennedy tax cuts, we end up paying for it massively four and more years later. Tax cuts are nothing more than another ponzi scheme - a money game.

We must know pay for all those George Jr 'welfare to the rich' programs. That means diminished growth to pay for so many lies in the 2000's - including "Mission Accomplished". The only monetary policy that creates economic growth is responsible fiscal policies. Nothing else. Tax cuts are another myth that money games can fix the economy.

[Undertoad]

W's tax cuts led to pretty nice revenue increases in 2005, 2006 and 2007 but were quickly negated by additional spending. The recession was caused by something else entirely.

Clinton didn't increase taxes much, but he enjoyed an economic boom which canceled the deficit.

[classicman]

Could one also conclude that decisions made during the Reagan era were instrumental in creating that "economic boom" - at least in part?

[Spexxvet]

Originally Posted by classicman

Could one also conclude that decisions made during the Reagan era were instrumental in creating "economic boom" - at least in part?

No

[classicman]

It is entirely disingenuous of you to suggest that.

In fact, by the time Clinton took office the economy was already growing. Additionally, the end of the Cold War helped to allow major cuts in the military which in turn led to a reduction in the size of government. Funny how he took credit for that when in reality it wasn't Clinton's policies that enabled this to come to fruition, it was IN LARGE PART Reagan's.







80%
WMD
George jr.
mission accomplished

[Spexxvet]

Reagan and daddy bush were responsible for the stock market crash of 1987 and the recession of '90-'91, but Clinton, even with higher taxes, was responsible for the growing economy through the '90s.

[Spexxvet]

BTW, Dutch was also responsible for middle class income stagnation.

[classicman]

I will respectfully disagree.

[tw]

Originally Posted by Undertoad

W's tax cuts led to pretty nice revenue increases in 2005, 2006 and 2007 but were quickly negated by additional spending. The recession was caused by something else entirely.

This recession is completely traceable to fiscal mismanagement at the highest levels of government mostly in 2000s. And the timeline for the recovery also corresponds to the type of recession only created by fiscal mismanagement.

If the recovery started in Nov 2009 as economist predict, then the recessionary period has ending just like other recessions created by government mismanagement. That means job losses will continue until about next summer. And then other economic parameter will only recover slowly. Timeline appears to be on target for a recession created by extremist political hocus-pocus economics. Or should we say voo-doo economics.

Those early 2000 tax cuts are part of the problem. Add to the lies another $trillion from Mission Accomplished - to attack someone who was not a threat. Add more money because in early 2000, wacko extremist virtually surrendered Afghanistan to the Taliban. More debts we are paying today because of extremist lies.

Or the $billion spent on a useless Constellation space program. The 2% reduction of American worker salaries during 8 George Jr years. How did the economy get better when American standards of living dropped? Oh. The rich got even richer due to George Jr welfare - the tax cuts that only enriched the rich.

The average American say his income drop 2% - but the tax cuts and resulting massive deficits that now further reduce the average Joe's wealth - that is good? Please. Tax cuts are voo-doo economics. A short term economic boost (maybe four years) followed by pain a decade later.

George Jr's tax cuts did exactly what I predicted here back in the early 2000. Thanks to his voo-doo economics, well, George Jr's decade is the only decade that saw American incomes drop - other than the great depression. During the George Jr miracle tax cuts, the average American salary dropped 2%. A budget surplus was raids to help pay for the tax cuts. And now we have a massive deficient due to George Jr - including his tax cuts.

But somehow the extremist rhetoric still says tax cuts are good. As Warren Buffet so accurately said so many years ago, the only tax cut is one that cuts spending. George Jr increased spending. Especially in Mission Accomplished - an obvious and intentional lie. Another reason, directly traceable to wacko politics and mismanagement, which created this recession. This recession is the type only created by fiscal mismanagement.

The same people even assigned White House lawyers to rewrite science papers. The same people would also rewrite history and economics.

[tw]

Originally Posted by classicman

I will respectfully disagree.

You must when politics are more important than reality. What happens when extremists rewrite history and economics. Same people who blamed everything on Clinton. Who lied about Mission Accomplished. Who even let bin Laden go free.

You do not even give one good reason for your beliefs. You disagree because the politics says how to think. Beliefs that are in lockstep with the politics that created this massive recession, massive debts, .... and even forget that TARP was created by George Jr's administration.

This recession was created by massive fiscal mismanagement that included tax cuts. My god. They even lied about the cost of Mission Accomplished - $2billion. Lying government officials – who even rewrote science papers that contradicted their politics - created this recession.

And now we would reelect these scumbags? They even lie about TARP to attack it. TARP was created by George Jr’s administration.

[xoxoxoBruce]

Originally Posted by tw

They even lie about TARP to attack it. TARP was created by George Jr’s administration.

2/3 of the people taking this quiz got that wrong.