Economy

Rant

Terrorists Holding The Debt Ceiling Hostage

Posted 12 months ago|16 comments|592 views
Republicans Caused The Debt
Written by
Altruist
Eugene, OR
The Republican Terrorists are holding America hostage. They threaten to destroy the countries fiscal foundation, destroying the nation economically, sending us, and perhaps the rest of the world into a depression, unless we undo all of the social programs that are allowing all but the rich to survive. They want to undo the stimulus, health care, and all of the other good work that has helped the country get out of the Republican recession, allowed Wall street to prosper, created millions of jobs and provided 14 straight months of economic growth. http://shredoftruth.com/component/conten...

When we consider whether the Debt Ceiling should be raised, we should first of all consider what caused the National Debt and the current Deficit. Republicans think that most of the deficit is from stimulus programs, and programs to help the poor, the sick , and the unemployed.

The truth is that Republicans, starting with Reagan, caused 80%-90% of the National Debt by increasing military spending while at the same time giving tax breaks to the rich. When GW Bush entered office, Clinton had balanced the budget and had budget surpluses of $200 billion projected indefinitely. We had actually started paying off the National Debt.

Then Bush reversed all of that by starting two wars and giving huge tax breaks to the rich while not paying for any of it. They just put it on the credit card.

Most of the spending that Obama is stuck with was also the fault of the Republicans. First of all Obama had no choice but to spend a lot to get us out of the depression we were heading into. He was in the middle of two wars. He decided to get us out of Iraq, which will save us money, and he decided to win and then withdraw in Afghanistan. Then he was blackmailed into extending the Bush tax cuts for the rich in exchange for unemployment programs.

Look at the chart which shows what Really cased the deficit. "The Center on Budget and Policy Priorities has updated a widely cited chart to show that Bush-era tax cuts to the rich and two ill-advised wars - not the economic downturn - are primarily responsible for the massive debt now driving Republicans to cut health, education, social services and every other remotely useful program. As usual, the visuals speak louder than any numbers." http://tpmdc.talkingpointsmemo.com/2011/...

The Republican Propaganda machine is making everyone freak out about the debt now all of a sudden, but when they were creating all of that debt, Dick Cheney said that 'Reagan proved deficits don't matter," "We won the (2002) midterms. This is our due."
By "due," Cheney meant that because Republicans won the midterm elections on a platform of more tax cuts and deficit increases, they could pass still more tax cuts and run up still more deficits. Voters knew that a Clinton surplus of $200 billion had been transformed into a $200 billion deficit under Bush (it is now $450 billion), and voted for Republicans anyway.
That's what Cheney meant by "Reagan proved deficits don't matter." For Cheney, Reagan proved there was no political cost to big deficits. http://www.washingtonpost.com/ac2/wp-dyn...
They intentionally passed on this huge debt problem to future generations and now they are blaming Democrats for what they did.

When citing the dangers of carrying a huge debt, Republicans say that the government should be handled like a business, and that is why they think that millionaires with business experience should run the country.
The fact is however that many businesses do run a deficit. Right now America has an income of $14.5 trillion GDP each year. It also has a $14.3 trillion debt. That is about a one to one debt ratio. For comparison IBM borrows twice as much as they earn, Dupont 3 to 1, United Technologies — 3-1. Boeing — 4-1, Caterpillar — 14-1, and JP Morgan Chase borrows 50 times as much as they earn. http://www.commondreams.org/view/2011/05...
What they are doing is investing in the future of their companies. We as a nation also need to invest in our future. We need better educated kids so we can be the innovators of the future. We need to invest in clean energy technology so we won't be left in the dust by other nations that are investing more. We need to invest in rebuilding our crumbling 50 year old infrastructure, to provide jobs and allow businesses to expand and prosper.
What caused most of the National Debt, and the current deficit, is that Republicans are just unwilling to pay for the things they have already purchased. It is now abundantly clear that we cannot balance the budget without raising taxes. 81% of the public would like to see a surtax on millionaires to help balance the budget, but most of the Republicans have signed a pledge to Grover Norquist, not to raise taxes for any reason. They think that a promise to an unelected rich guy is more important than their pledge to uphold the Constitution and protect the United States. http://www.thefinarts.com/category/gover...
Now the Republican terrorists are holding the Debt Ceiling, and the future wellbeing of America hostage for political ideology. They are willing to risk destroying America for economic and political policies that were proven disastrous just a few years ago.
EMAIL|FLAG THIS POST
COMMENTS
Out Of The Box
Out Of The Box
 Moderator
12 months ago: You're using numbers from two different sets of statistics. In order to be honest, you should use the following:
National debt: $14.3 trillion
Federal income: $2.2 trillion annually
Debt to income ratio : 6.6 to 1

If you want to use the GDP as a marker, which is all the privately earned money, then you would have to include all the privately held debt:
Total debt : $54 trillion
Total GDP : $14.5 trillion
Debt to income ratio : 3.3 to 1

Also, you read your chart wrong. It isn't saying that Republicans are responsible for "80-90% of debt". It is saying that tax cuts and war funding will be responsible for HALF of the public debt by 2019. Notice on the chart how the line keeps skyrocketing upward, especially after Obama took office.
12 months ago: It seems to me that the Bush era tax cuts and the "Wars on terror" are responsible for 50% of the projected deficit.

No matter how you slice and dice it, that is significant and certainly not being communicated by those proposing a gutting of the social safety net.
Out Of The Box
Out Of The Box
 Moderator
12 months ago: Also, though, don't take one chart and treat it as an end-all be-all. The chart in question was prepared by The Center on Budget and Policy Priorities , an organization that receives its funding from the Democracy Alliance, an elitist group of progressive millionaires, including George and Jonathan Soros.

I would love to see a world in which we can cut defense spending, when the rest of our friends abroad can protect themselves from those who wish to take what they have by force.

I would love to see an end to offensive military spending also, such as our current involvement in Libya. We have no business there, except for Obama's desire to solidify his ties with France. We need to get out the middle east altogether, drill our own oil, and quit dirtying up somebody else's back yard.
12 months ago: Reality check, you get into debt by spending more than you take in. You get out of debt by taking in more than you are spending.

When you have reduced what you are taking in by giving tax guts, you probably aren't going to be able to recover without reversing those cuts.
Out Of The Box
Out Of The Box
 Moderator
12 months ago: It's a matter of whose philosophy you want to espouse. JFK, beloved Democratic president, thought that lowering taxes increases revenue. That is, as long as other government policies don't hamper the natural economic growth that occurs as a result of lowering taxes. The regulations being implemented by the current administration are negating any effect lowering taxes might have. Universal health care, energy taxes, etc.
12 months ago: Uh? Reality Check 2. Why not cut the giveaways?

I'm sure your household has not cut back to help make ends meet.

Why don't you expect the same from the Federal Government?

Oh, I forgot....It's not your money.......
11 months ago: Actually, my household did cut back. We were severely impacted by the collapse of the major financial institutions. Our savings took a major hit, and when the government bailouts went to the institutions that evaporated our savings, our savings DID NOT reappear -- hmm.

What I am tired of doing is subsidizing the rich. My percentage of taxes paid exceeds the rich by a significant amount. I don't have the wealth or access to the financial devices to take advantage of the tax loopholes they do. And I don't have the ability to affect policy.

Enough is enough. The bailout for the toxic mortgages should have directly benefited the people who were forced into bankruptcy and foreclosure. It was a great deal for the investment houses, they get a bailout for a defaulted mortgage, foreclose on the property, then sell it and get even more back.

12 months ago: How about a quick look around the country since your savior was sworn into office?

Uh? We are in a Obama Democrat Depression.

Heard it first here.
sunny2
sunny2
12 months ago: I can't wait until they all fall down.
12 months ago: Hey Albert? Are you not into Darwin?

You think that is a stupid question?

You might want to read your own words in the post.....

"unless we undo all of the social programs that are allowing all but the rich to survive"

Did you Liberals do them in the beginning? Are you now owning the burden they cause to your list of acheivements?

Sounds like your into social engineering and manipulation of the social market to me........

Altruist
Altruist
Eugene, OR
12 months ago: When I said that the 80%-90% of the debt was caused by republicans I was referring to the current debt. The vast majority of the current debt was created by Republican administrations. If you look at this graph you can see that Democratic administrations reduced the amount the debt increased and the Republicans increased the amount the debt increased. This uses data from the State Department of the Treasury. http://bdole.wordpress.com/2011/04/13/na...

The above graph shows that from this point on, if current policies like the Bush tax cuts and the wars, are allowed to continue, the debt will explode.

Kennedy suggested that tax breaks to the poor and middle class might stimulate the economy, but tax cuts to the wealthy does not. They just sit on their money, Now we have 10 years of tax cuts to the rich with little to show for them. That is what Obama tried to do, he gave a lot of tax breaks to the poor and middle class, but then he was forced to also give far more money to the rich and that destroyed any chance of balancing the budget.

The only chance we have for fiscal sanity is to 1. Stop the Bush tax cuts. 2. Stop the wars and slash Defense spending. 3. Reduce health care costs by implementing single payer health care like Vermont. They will reduce Health costs by 25%. 4. Make the rich and the corporations pay their fair share. They are currently at record low rates. 5. Come up with new revenue sources, like a carbon tax to transition away from fossil fuels, and a transaction tax on the same sort of risky Wall Street and Bank speculation that caused the economic disaster and is threatening to do it again.

One of the major factors in the debt is how fast the economy is growing. If we do what the Republicans want with their austerity programs, it will cost nearly a million jobs and will slow down the economy. That makes the debt grow by about 25%. If on the other hand we invest in job programs and programs designed to stimulate the economy we can get the debt to shrink significantly.

"Currently we have a huge $1.4 trillion deficit, but if the economy grew at a rate of 2.8% that deficit would shrink to $861 billion. If the economy did better and grew at a 3.3 % rate the deficit would be reduced to $521 billion. If it grew at a rate of 3.9% our deficit would be reduced to $113 billion!" http://www.time.com/time/magazine/articl...
Out Of The Box
Out Of The Box
 Moderator
12 months ago: That chart only goes to 2006. Do you have anything more current?

In this quote, Kennedy is definitely not talking about personal income taxes for the lower and middle class:

"Our tax system still siphons out of the private economy too large a share of personal and business purchasing power and reduces the-INCENTIVE FOR RISK, INVESTMENT, AND EFFORT– thereby aborting our recoveries and stifling our national growth rate."

This is exactly what is stifling what would have been a normal recovery by now. The threat of a "value added" tax, the threat of additional payroll taxes to fund Obamacare, the threat of a new energy consumption tax, and so on and on.

Currently we have a huge deficit. That is true. But the economy is not growing by those rates, and it is not likely to, as long as the threat of new taxes are hanging over our heads.

– John F. Kennedy, Jan. 24, 1963, message to Congress on tax reduction and reform, House Doc. 43, 88th Congress, 1st Session.


Out Of The Box
Out Of The Box
 Moderator
12 months ago: Since you love holding Congress responsible for Obama's shortcomings, and blaming the current majority in the House for all our fiscal woes, consider this chart: http://en.wikipedia.org/wiki/National_de...
which outlines the fact that congress has been firmly controlled by Democrats for the greater part of the past 68 years.

Since 1945, Republicans have been in charge of the House for 18 of those years.
Since 1945, Democrats have been in charge of the House for 50 of those years.

Likewise, in the Senate, Republicans have been the majority for 20 Senate terms.
Democrats have been the majority for 48 terms.

Makes you stop and think about whose fault it really is.
12 months ago: Both the Elephants and Donkeys are to blame for being Bull headed. McCain was right when he said that a freeze on all but the most essential government spending was necessary until a thorough analysis could be made in order to pinpoint where the waste is coming from. There is waste in Military spending but there is also waste in social programs as well and that is where most of the debit exists.
12 months ago: Rid ourselves of the income tax and impose a fair tax (which helps the poor the most because they pay no taxes) and stand back.

All our problems with the deficit will be over.
Altruist
Altruist
Eugene, OR
12 months ago: Red the Fair tax is very unfair because the rich would get off paying only a fraction of the paltry amount they now pay.

I understand the appeal of a simplifies tax system however.

I also understand OOTB's concern with business and their concern. Congress should throw the entire tax system out and start from scratch, but it needs to be ACTUALLY FAIR. Currently because of tax loopholes the rich and the corporations are paying less than they ever have befors.

A transaction tax of 0.2% on every transaction made, is such a small percentage that it would not discourage sales or transactions as a sales tax would, but it would generate almost as much revenue as the income tax, because of the immense amount of leveraged money being shifted from one account to the other in the risky derivative, hedge fund, currency speculation businesses. This would require a bit of "skin in the game" and would cool down that speculation a bit. Regular people would hardly feel it and it would all be done automatically with tax forms or anything. http://www.apttax.com/

In addition we should have "Green taxes" or "Sin Taxes" similar to the tobacco and alcohol taxes, which serve the dual purpose of discouraging harmful behavior while generating revenue. Anything that harms the nation or the environment should be taxed to offset the harm done to the society and to discourage that behavior.

If these two tax systems were put in place, then I would be in favor of a much smaller simplified Corporate and Income tax, With few loopholes or deductions, similar to the Fair tax with capital gains and Estate taxes treated the same as other income, with a surtax on millionaires until the budget was balanced.

While there is a bunch of bad behavior the tax system should discourage, there is also good behavior we want to reward. There should be a tax break for business for producing jobs and for research and development, and for individuals for charity. There should be additional taxes discouraging moving jobs overseas.


Post a Comment
Sign in or sign up to post a comment.