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About Those Deficits …

THEY’RE STILL OUT OF CONTROL It doesn’t take a genius to realize that the federal government is on an unsustainable fiscal course … hell, a student in one of South Carolina’s worst-in-the-nation government schools could probably figure that out. Or maybe not … But whether people comprehend (or accept) this…

burning money

THEY’RE STILL OUT OF CONTROL

It doesn’t take a genius to realize that the federal government is on an unsustainable fiscal course … hell, a student in one of South Carolina’s worst-in-the-nation government schools could probably figure that out.

Or maybe not …

But whether people comprehend (or accept) this reality – it is reality nonetheless. Bottom line? The $620 billion “fiscal cliff tax hike” does absolutely nothing to solve America’s short- and long-term deficit problems. In fact this tax hike will likely exacerbate these problems given its anti-stimulative effect on the economy. Not only did taxes go up for the upper income earners (a.k.a. the job creators), they also went up for every worker collecting a pay check (a.k.a. the consumers).

That’s getting caught in a pincers, people.

Wait … didn’t Barack Obama and Congressional “Republicans” exempt the middle class from tax hikes? Um, no. Not even a little bit.

Which brings us to our point … after imposing massive tax hikes on all income earners the name of reducing the deficit, there’s a new report out this week which shows just how little an impact these tax hikes are going to have on deficit reduction. According to the latest data from the Congressional Budget Office (CBO), the federal government is expected to create $9.2 trillion in new debt by 2022.

Yeah … OUCH.

“The CBO report underscores the challenge facing Obama in his second term,” observes Philip Klein of The Washington Examiner. “He’s reluctant to cut spending or agree to fundamental reforms to entitlements, but he won’t be able to significantly bring down deficits merely by raising taxes on wealthier Americans.”

That’s an incredibly concise way of saying it. Factual, not inflammatory. Painfully blunt, yet non-acerbic. But however you say it the fact remains: No serious effort is underway in Washington, D.C. to control our runaway deficits – and the latest round of tax hikes will only serve as a drag on economic growth (and by extension, revenue growth).

We’re making the situation worse, in other words …

We don’t believe in cutting taxes for the purpose of raising revenue (that’s anathema to everything we stand for), but there is an optimal level of taxation in any economy and our government was already way, way above it. Now we’ve managed to make matters worse – something we didn’t think was possible.

***

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11 comments

mph January 8, 2013 at 1:42 pm

How did we ever survive the 1990s?

We could have payed off all our debt in 14 years and then we were introduced to “fuzzy math.”

Reply
? January 8, 2013 at 1:44 pm

You’re being too negative Sic.

The Keynesians have a solution.

They are going to craft a trillion dollar coin(that actually won’t even be worth $10,000 in terms of real value) and use it to pay the deficit down a little. Just like an episode of the Simpson’s.

O ye, of little faith.

Btw, if you think the coin idea is silly, Krugman has pitched “moral coupons” as an alternative.

LMAO!

Do you mind if I pay for my hamburger today and give you a moral coupon for it later?

lol….I don’t know how much longer even the most retarded person can take these so called “economists” seriously anymore…it will be an interesting experiment though.

Reply
? January 8, 2013 at 1:45 pm

edit: “HAVE my hamburger today”

Reply
Smirks January 8, 2013 at 2:51 pm

I like the idea of a trillion dollar platinum coin. Now all we need is a crack team of highly intelligent crooks to pull off the heist of the century – and it’ll all fit in the palm of their hand. Ocean’s Fourteen, coming out summer 2013?

Reply
tomstickler January 8, 2013 at 2:58 pm

I knew J. Wellington Wimpy, and you’re no J. Wellington Wimpy, so no cheeseburger for you!

BTW, the $trillion coin gambit is merely an end-run around a recalcitrant Republican House of Representatives, and is no different than selling bonds to finance the debt in economic terms.

Politically, it evades the debt ceiling nonsense that Republicans are using as a hostage for their demands for more cuts in Social Security, Medicare and Medicaid.

Reply
major major January 8, 2013 at 3:49 pm

I’m picturing Dr. Evil holding the magic coin, pinkie upraised.

“One TRILLION dollars!!”

Reply
James the Foot Soldier January 8, 2013 at 1:44 pm

Making the situation worse?

I’m as libertarian as they come but the “sky is falling” nonsense isn’t:
A: working
B: happening

This congress/president/electorate doesn’t have the kahunas to address spending so the republicans best find a new straw man to flail against.

Reply
mph January 8, 2013 at 2:39 pm

Weird, we have this paper stuff we use everyday. Anybody think it’s worthless, please mail it Rutledge Avenue in Charleston.

Or maybe can start minting silver coins or go to a barter system.

Another trip in the fits news Delorean. Remember, where you’re going, there are no roads.

Reply
mph January 8, 2013 at 2:40 pm

Speaking of retarded, how’s that OKC Bombing investigation going, Agent Moulder?

Fucking loon.

Reply
? January 8, 2013 at 3:34 pm

Awe come on now douchebag, you have to know it was spelled “Mulder”.

Only a moron like yourself could make fun of silver money when the nation used it up until 65′.

Maybe for you instead of a platinum coin we could polish a turd and call it money and watch you have a party.

Reply
ceilidh10 January 8, 2013 at 3:02 pm

The problem is not the deficit. Do not attack the deficit. They are doing that in England now and there is no growth to show for it. You need to turn on the money tap and inject liquidity into the system and keep interest rates low. That stimulates the economy. That is what we are doing now. And we are slowly recovering. Obama and Bernanke are correct.

The GOP is wrong about the economy.

Reply

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