Here it comes!! The Balanced Budget Ammendment is coming, I predict.
Here is an article written by Washington Post columnist, Robert Samuelson, in which he says
| "The virtue of balancing the budget is that it forces people to weigh the benefits of government against the costs. It's a common-sense standard that people intuitively grasp. If the Deficit Commission is serious, it will set a balanced budget in 2020 as a goal, allowing time to phase in benefit cuts and tax increases." |
This viewi is without question the broadly held view, both by the electorate and policy makers. That's why it WILL happen and it WILL ensure decades of economic malaise, high unemployment, higher poverty and misery and ironically, higher deficits!
Reminds me of our discussions here about how Clinton balance the budget to look good while exiting the White House, but by pulling and reeling in the government spending out of the real economy he cratered the economy by creating this surplus.
ReplyDeleteThen Bush came in and gave out tax rebates under the guise of tax payers getting "THEIR" money back when in fact tax receipts do not fund the majority of the government spending which propagates the real economy.
Bush's tax rebates were a bribe for patronage and induction into the Iraq war. It was an illusion, and a smoke screen.
To give out the checks is stimulus but we were bought out by the checks with the effect of being miseducated about how government economics works ( in-paradigm )
Instead everyone thought they were getting their tax money back ( out of paradigm ).
So : true Bush stimulated the economy.
But : false Bush gave back tax payers their tax money. - that was the marketing portion to perpetuate and to indoctrinate Americans into thinking "out of paradigm" and into the deficit fear mongering terrorist hawk fiscal BS rubbish that we are jammed up with today for 1937 part 2.
Mike, I'm not understanding how effort to balance would lead to higher deficits. Please explain.
ReplyDelete"true Bush stimulated the economy.
But : false Bush gave back tax payers their tax money."
Way to break it down, goog!
:-D
MA,
ReplyDeleteTom Hickey posted this here over at billyblog, may go to the issue for you...
Resp,
Merkel is putting to the test
ReplyDeletethe biggest stumbling block to financial reform. Eliminate naked credit default swaps, and the casino shadow banking, hedge fund,
international large bank cartel that has co-opted governments to do thier bidding.
You will see deleveraging in the CDS markets now with the banksters and hedgies getting out and squaring positions. Finally some positive payback from the sins of the asset shufflers!