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

Thursday, September 30, 2010

Are Congressional Republicans myopic? Or just really bad at math?

Last week, the national Republican Party unveiled their Pledge to America. If you watched the brilliant Jon Stewart piece on this, you know that the much-ballyhoo'd Pledge is the Same Old Sh-- from the Grand Old Party (AKA, the Party of No Ideas): tax cuts for the rich (AKA, trickle down economics); elimination of "Obamacare" (AKA, pay-your-own-way health savings accounts); traditional values (AKA, we hope everyone has forgotten those gay sex scandals); control spending (AKA, we hope everyone has forgotten our deficit-spending binge under Bush II); reduce government (AKA, we hope everyone has forgotten those earmarks and bail-outs we voted for); support the troupes; stand by our friends; tort reform; yada, yada, yada.

There was much comparison in the media of the Pledge to America and the Contract with America, Newt Gingrich's document from the early 1990s when the Republicans took control of Congress. As Stewart so aptly pointed out, the Pledge to America is "not even a sequel [to the Contract with America], it's a shot-by-shot remake." He proceed to show clips of long-term Congressional Republicans like House Minority Leader John Boehner (above, courtesy of NPR) spouting the same ideas in 1994 - 2004 as they outlined last week in the Pledge.

The grand finale was Boehner 2010 side-by-side with Boehner of the past saying exactly the same words with the same emphasis and pacing. (How's that for living up to your stereotype of the Party of No Ideas?)

Fast forward one week...

Pundits are now analyzing and commenting on the content of the Pledge to America, and more data are being released about the dismal state of the economy. ("Drat, we thought we could get by with soundbites!" Boehner is overheard saying in Southern Ohio tanning spa.)

- The Economic Policy Institute released a report that says the Republicans' job creation plan (AKA, give more money to the rich) would result in the loss of 1.1 million jobs. (I guess they are the only ones who have not heard that giving money to the rich is the least effective way to stimulate the economy and jobs and that trickle down economics doesn't work.)

- The 2010 Census data revealed that the gap between rich and poor is widening (duh), and that poverty has increased in most states. (So, why have Republicans vote against extension of unemployment repeatedly? Why are they holding extension of the middle class tax cuts hostage? Why did they try to block Obama's jobs bill? Why do they want to eliminate the public safety nets of healthcare reform and Social Security? Why? Because all of these things are unfriendly to the corportists. They represent the multinational corporations of America-- not the people.)

- Robert Reich said on NPR that the middle class can't go any deeper into debt and can't work longer hours. They're doing everything they can to survive.

And besides all of this, their plan just doesn't add up. They want to repeal healthcare reform and make all of the Bush II's tax cuts (especially those for the ultra rich) permanent PLUS cut government and cut the deficit.

George Bush I called trickle down economics "voodoo economics" when he ran against Ronald Reagan for president. What the Republicans are proposing with the Pledge to America is "voodoo math". Healthcare reform and sunsetting Bush II's tax cuts on the richest Americans save us BILLIONS of dollars. If Congressional Republicans are allowed to accomplish these two goals, the US economy will be hurt even more. Also, decreasing the size of government means eliminating government jobs. On the NPR's Diane Rehm Show, one commentator said that even if the Republicans take government spending back to Reagan era levels + cut more, we would still be no where near a balanced budget.

The bottom line is: the Pledge to American is a hoax. Don't buy the lie.

Wednesday, September 29, 2010

Giffords stands with the middle class and fiscal responsibility

The Arizona Daily Star reported today that CD8 Congresswoman Gabrielle Giffords chose to stand with the middle class and fiscally responsible-- rather than caving in and going along with those who want to continue the budget-busting Bush tax cuts for the richest Americans.

Forty-seven House Democrats sent a letter to President Obama saying that they would support extension ofall of the Bush era tax cuts.

Obama has been promoting keeping the Bush tax cuts for people who make less than $250,000 but allowing the cuts to expire for the richest Americans.

Although the Republicans have been pushing the IDEA of fiscal responsibility (in order to win over the Tea Bagger vote), they also have been pushing hard to make all of the Bush tax cuts permanent, which add BILLIONS to the deficit.

This fall Republicans have been willing to let all of the tax cuts expire-- even cuts for the middle class-- if they can't get continued give-aways for their rich cronies. When will they give up on trickle down economics?

I am seriously disappointed that these DINOs wrote a letter of support for this fiscally irresponsible Republican plan, but I am proud of Giffords for not caving. Go, Gabby.

Tuesday, September 28, 2010

We want those 8 million jobs back

Don't forget, Ed Schultz's One Nation Working Together March is this Saturday, October 2, in Washington, DC.

The Nation recently posted a great background piece-- For Jobs, Justice, and Education. In a nutshell, the article talks about the plight of working families in America, tone-deaf Republican and Blue Dog Democrats who are fighting for the rich (instead of working for workers), and the rationale behind the march.

Here is a small excerpt.

"...we should be investing in rebuilding America, thereby helping to close the jobs gap, which will then help close the budget gap.

"Instead, as we careen toward a possible double-dip recession and a second round of devastating home foreclosures, the extreme right-wing media machine is desperately trying to discredit the idea that America's government can and should move aggressively to create more jobs...

"Nothing they say should persuade our leaders to throw America's working families under the bus. We are in the middle of the biggest economic crisis in half a century. Through its negligence and recklessness, Wall Street has already forced a brutal austerity program on Main Street. The role of America's government is to mitigate its effects and reverse the damage, not to make things worse by heaping suffering on top of suffering. This is not the time to abandon schools, shut down clinics, ignore crumbling infrastructure and forego job creation. This is not the time to take more away from families and communities that are already losing so much. We don't need a public austerity program on top of the private sector–imposed austerity that we are already enduring.

"But some members of Congress apparently think they should focus on closing the federal budget gap, even if it means letting millions more American families tumble. They are mistaken. America's workers find themselves in a deep hole. You don't cut your way out of a hole. You grow your way out of a hole. We can afford to invest more in America's long-term success. We are the wealthiest nation in the world. We should not be giving billions of dollars to companies like Halliburton abroad, while closing hospitals at home.

"...the American people finally will be able to choose between two movements: one that wants to demagogue problems and divide us, and another that wants to promote solutions and unite America."

Saturday, January 2, 2010

I.O.U.S.A.: a case for fiscally responsible government

Pontificating about the national debt and fiscal responsibility is popular campaign rhetoric, but politicians haven't done anything significant to reduce the national debt since President Bill Clinton was in office.

In fact, under President George W. Bush, Clinton's $127 billion surplus was transformed into a record $455 billion deficit-- through repeated tax cuts for the wealthy, military imperialism, and adherence to the failed theory of trickle down economics. Now the debt is in the trillions of dollars--and increasing every minute.
As we approach a new year with cautious hope, many Americans are glad to see 2009 end. With skyrocketing unemployment and home foreclosures, failing local businesses, and bankrupt state and local governments, it has been a rough year and a half since the economic crash of 2008.

Watching I.O.U.S.A. One Nation. Under Stress. In Debt on New Year's Day was a chilling experience. The movie offers a learned but understandable look at the current national debt, how we are dealing with it (or not), and what the country has done in the past to pay off debt. For a thorough recap and independent review of the movie, check out this link.

In a nutshell, the premise of the movie is that the US actually has four deficits:

1- The federal budget deficit-- The national debt is $12 trillion and counting;

2- The savings deficit-- we are a country of consumers, not savers;

3- The trade deficit-- we buy more from other countries than they buy from us; and

4- The leadership deficit-- our politicians are more interested in getting re-elected, than making tough choices. The leadership deficit is glaringly apparent in Arizona, where the Republican governor and Republican-controlled legislature nip away at the multi-billion-dollar budget while avoiding tough choices and refusing to listen to ideas put forth by the legislative Democrats.

I would two more deficits to this list:

5- The education deficit-- It was shocking how many people in the movie could not define the word "deficit". This is a symptom of our failed educational system, which is only going to get worse in bankrupt states like Arizona. Public education in the US is in a downward spiral, and no one is acting upon this. After all an uneducated populace will not question those in power. If you can't even define "deficit," you're not likely to ask for accountability from the leaders who are running it up. We are shortchanging future generations by allowing this to continue.

6- The media deficit-- With the demise of local newspapers and the rise of television entertainment news, the media in the US is in a shambles. Our best hope for real news-- not controlled by corporate press releases-- is citizen journalism.

When the continuation of the war in Iraq, escalation of the war in Afghanistan, multiple stimulus packages and corporate give-aways, and potential healthcare reform are added to our current fiscal obligations and the impending financial doom with the government starts paying Social Security benefits to millions of retiring Baby Boomers, the scenario is mind-boggling. For years, US taxpayers have been paying more into Social Security than is being paid out to retirees. Within the next 10 years, as more Baby Boomers retire, Social Security will be obligated to pay out more than it takes in. This in itself is a problem, but the US government has been borrowing against the Social Security surplus for years. No more surplus = no more borrowing = an even higher budget deficit.

Where do we go from here?

- Americans have to be willing to make tough economic choices. Thanks to Ronald Reagan, Newt Gingrich, George W. Bush, and the ideologues at FOX News, many Americans believe we can have everything we want and not pay for it. Our credit card mentality has to change. The bill is coming due, and we have to figure out how to pay it.

- We absolutely have to hold our elected officials accountable. In many elections, there is a "throw-the-bums-out" sentiment. This can be good or bad. Yes, throwing the bums out can clean house, but it is not blanketly a good idea to vote for the challenger "just because". We should reward politicians who have the guts to make the tough choices for the collective good. (Except for President Barack Obama and some in his administration, I can't name too many politicians who are putting the public good in front of personal ambition.)

- It is unconscionable for us to spend, spend, spend and leave crippling debt, a crumbling infrastructure, and a devastated educational system to our children and grandchildren.

- What can you do personally? Get involved in your local community and local government. Register and vote. Educate yourself about candidates and issues. Talk with friends and family. An educated and informed electorate is the key to change. Check out the I.O.U.S.A. trailer as a first step.

- Release yourself from debt. Pay off your credit cards, cut them up, and close the accounts. Don't buy things you can't afford. Save money. Make a plan to become financially independent.

This article originally appeared in my Progressive Examiner column.