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Category Archives: Debt

The new Republican party

The only thing I gathered from the Republican debate last night was that Republicans are for a couple things;

1. Tax cuts

2. Less regulation

3. Cut, Cap, and Balance

4. Privatizing the big three

The only argument they seem to have is that Obama should be a one term president because he’s a failed leader, and a socialist! Let me remind the Republicans that Obama passed almost universal healthcare; that will decrease the deficit, he said that he ordered his executive branches to look into decreasing their regulation that are outdated, and he signed a historical effort to reduce the debt. Now, the debt bill I wasn’t in support of, but my point is that Republicans will never support Obama on any issue, because as Bachmann said clearly last night their only goal is to see Obama a one term president.

 
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Posted by on August 12, 2011 in Debt, Taxes

 

What the “Super Congress must do; for Progressives

1. Create an economy that creates atleast 300,00+ jobs per month.

2. Create and economy with a minimum 4% increase in GDP growth rate.

3. Allow all Bush tax cuts to end.

4. Means test Medicare, and Social Security.

5. Add a 4.5% surtax on individuals making above 250,000 to help pay for entitlement programs.

6. Increase the negotiating power of the federal government on healthcare.

7. End too big to fail, and trust bust too big to fail corporations.

8. Add a tax on risky financial tools; such as derivatives and credit default swaps.

9. Enact a public option.

10. End the corporate loopholes that allow some businesses to pay nothing in taxes.

10. Put in place a cap-and-trade programs that forces the private sector to innovate.

11. Enact the Congressional Reform Act of 2011.

12. Force corporations to bring back foreign profits, and use those profits to fund the rebuilding of America.

13. Reform the financial institutions that brought as to where we are today.

14. End NAFTA, and bring the jobs home to America.

15. Repeal of the Citizens United case.

16. Enact malpractice reform.

17. End the wars in Iraq and Afghanistan.

 
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Posted by on August 11, 2011 in Budgets, Debt, Fairness, Health Care, Investments, Taxes

 

S&P on the Balanced Budget Amendment

“In general, we think that fiscal rules like these just diminish the flexibility of the government to respond. Also, when Congress has a long track record of trying to bind itself with various rules…But when push comes to shove, they don’t bind very much. So even if you had a Balanced Budget Amendment, you’d have some questions about it’s credibility, and it would just reduce your flexibility in a crisis.” -John Chambers.  Take that Republicans!

John Chambers – S&P

 
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Posted by on August 10, 2011 in Debt

 

How America can regain it’s triple-A credit rating

The credit rating agency S&P that downgraded the American credit rating for the first time in history has laid a framework for how America can be AAA again. First, they understand that spending cuts don’t really address the unfunded liabilities of our government. If we are going to decrease our deficit we have to fund or decrease our long-term unfunded liabilities. These liabilities include entitlement spending in Medicare, Medicaid, and Social Security. But, one must remember that Social Security doesn’t contribute to the deficit, and only in 2037 will any beneficiary see a decrease on benefits; 25% decrease. But, the gap between what Social Security bring in, and what it pays out to its members will NOT add one dime to the deficit, or debt. That is fact. S%P has said that he need entitlement reform, and that we need to raise taxes. The most important thing that the credit agency said that will do the most to solve our debt problems strengthen the economy. The cuts only approach is bad for our country because the proposal passed by Congress this August will only hinder economic growth; by a projected net decrease of 1.8 million jobs. Loosing those jobs will increase the deficit, and decrease growth to -1%. Those Republicans are showing they are pro-grwoth; even though the legislation they’ve passed and have tried to pass this year will make the economy worse. Yes, the credit rating agency S&P made a mistake downgrading America. The treasury bond is still the safest investment next to gold, but they were right to call out politicians who are saying we can’t address taxes or entitlements. With with this downgrade the Republicans should be put to rest. Hundreds of respectable Republicans and economists from around this country have said that taxes must be a part of this plan. Republicans have to stop playing this game. Why should the poor be asked to sacrifice even more than they already have throughout this recession. Tax along can solve our fiscal problems. We need to stop the war on the poor and middle class. and start a war with the true reason why we’re in this situation; the wars, the rich, the banking system, fraudulent trade deals, and profit-making corporations. We must bring trust busting back.

As a progressive here’s how we can save our entitlement programs. On Medicare the government can negotiate drug prices under the Medicare Part D law. THe rich can pay more into the system by a 4% surtax. Rich seniors by law will still be required to pay into the system, but they will receive less, and more benefits will go to poorer seniors; they people who need this healthcare. Allow all citizens to pay into a Medicare system which will take the burden off the system. THis program would b like a public option; if you want what Republicans call a “government, socialist, horrible, governmental take-over, rationing” health insurance plan you will have that choose. This government insurance option could be taken by individuals, but they could also continue receiving their insurance on the private market. On Social Security you could tax 90% of income. Tighten up disabilities pay. Anyone who is disabled should have full access to the SSI system, but if you’re frading the system and taking free money that practiced must be stopped. Every program should be means tested; if you’re rich, and can survived without these programs you don’t need to depend on the government. Improving the economy will have the biggest effect on reducing Medicaid costs, because if the economy gets better and more jobs are created many fewer citizens will need this program. These proposols are just a start, but a general framework of a plan must make sure that these prorgrams allow the poor a better chance. Also, in both of these government programs the government needs to bundle funds; meaning that the government will pay for someone getting healthier rather than for services. The days of fee for service in the medical field need to end! Any entitlement reforms in the eyes of the Progressives should;

1. Not privatized any part of the programs.

2. Increase benefits to the individuals who need them most.

3. Increase the amount that the rich pay into the system.

4. Make healthcare cost for everyone go down.

5. Make the system fairer for everyone.

6. Extend for at least 50-75 years the solvency on these programs. 

7. Increase the taxable income on Social Security.

8. Close the Social Security trust fund to congressional spending. End congressmen and women taking money out of these trust funds.

S&P is correct on their assessment on how we should reduce the debt, and I hope Republicans soon wake up to the facts and what 80% of the American people say; the rich must pay more.

 
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Posted by on August 10, 2011 in Budgets, Debt, Economy

 

Why the credit downgrade isn’t Obama’s fault

As many of you know Standard and Poor’s downgraded U.S. treasury bonds from a triple A rating down to a double A plus rating. Why did this happen? We did not do enough in the deficit deal to reduce the debt and deficit in the long term. Let me be clear, President Obama was strongly pushing for a deal that included 4 trillion, with a “T”, for debt and deficit reduction, and Republicans instead of embracing the package said no. Have we heard that a few times? They are scared; (Of poor Mr. Norquist?) scared to raise taxes, and that don’t have the poltical courage to really address an issue as politically vulerable as reducing the debt. This is not Obama’s downgrade as many on the right will say. This downgrade was brought to you by none other than the Republican party. They took surplus and turned it into a deficit. There were no cries from the Republicans about the deficit crisis then during the Bush adminstration. I have no problem with the Republicans wanting to reduce the national debt, but I do have a problem when the only reason they want to reduce the deficit is when it’s not their deficit.

As you can see from the graph who really has added to the national debt? Under Democrats over the last 35 years the debt was stable; under Jimmy Carter, and under Bill Clinton the debt was reduced quite significantly. Under the Clinton the debt was reduced because of HIGHER TAXES. He raised taxes on the rich by 1.2%, he also cut spending which allowed for the U.S. to eventually balance their budget. This is the same approach we need now.

Why does the debt have to do with our credit rating? Well, the rating agency S&P said that our deficit plan to reduce the debt didn’t go far enough. And this connects with Obama because he was pushing for the 4 trillion dollar plan that Republicans backed away from. Obama tried to produce a plan, and he called for a plan that would raise taxes on the rich while reducing government spending. Obama can’t be responsible for parts of the debt, but he does have the job to fix and stabilize the debt. Something that very few people want to do. If he can rally support for his 4 trillion dollar plan that is balanced maybe the rating agencies will take another look at the downgrade. Hopefully the Republicans will wake up; the increased debt was caused by their policies they must wake up and see what the American people want. But again listening to the American people is not something that Republican look doing. At lest our debt isn’t junk, yet, as maybe Republicans would like?

 
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Posted by on August 6, 2011 in Debt, Economy

 

Tax and Spend..Republicans?

The budget problems facing our country aren’t caused by Democrats as many would like to believe. Our current situation is simply caused by the recklessness of past Republican Congresses and Republican administrations. Just under the last Republican president, George W. Bush, the national debt grew by seven trillion dollars. President Bush ballooned the debt by allowing the U.S. to be involved in two wars in Iraq and Afghanistan which added about 1.4 trillion to the debt, enacting increased spending for different national spending programs such as defense and education which increased the debt by 1.7 trillion, authorizing a Medicare drug benefit plan that wasn’t funded by new revenues of spending cuts which added 300 billion to the debt, passing the Bush era tax cuts which added over 3 trillion to the debt. The tax issue is a complex issue, but to address the current debt situation you need to get revenues into the picture. Revenues are needed because the economy depends too much of governmental programs for them to be cut in the way the current Republican party would like to de domestic programs cut. Spending programs aren’t the fundamental problem with our huge deficit the decreasing revenue because of the Bush era tax cuts are almost single handily what got us into the terrible fiscal mess we are in today. Many Republicans say that we need to address the debt like a family would address their own money problems. When a family attempts to get their “fiscal house in order” they will maybe get rid of some household items they could make money on maybe decide not to go out to eat, or maybe even cancel magazine subscriptions. I don’t know of any family that would get rid of buying food, or getting rid of paying the interest on their home. At the same time, if a family needs more money they might consider trying to find another job, or some way to increase the money that flows into their home. Families aren’t just going to decrease the amount of money they spent they will try to find ways to make more money; a second job, etc. If Republicans are using the family as their symbol for this debate start dealing with the debt like a family would. Also, the 2008 stimulus by a Republican President George W. Bush which included the Troubled Asset Relief Program (The banks bailout) added about 200 billion to the debt. All these spending and tax expenditure programs added a massive seven trillion dollar increase to theU.S.national debt. Another very little known detail of the Bush Administration was a farm bill that passed adding another 400 billion to the debt. At the same time when Republicans are saying that under Obama we had the largest increase in spending in our nations history, but let me be the first to tell you they are flat our lying. Under Obama the increases to the deficit only included the Recovery Act, (800B) the extension of the Bush era tax cut, (400B) and temporary economic programs such as the HIRE Act. (400B) Under Obama the debt has been increased by only 1.4 trillion. The Republican administration needs to understand where the debt came from, not from Obama, but their own spending spree. They wrecked the economy, they wrecked the middle class, and somebody needs to start calling out the insanity of the Republican Party. Bush increased debt by 7 trillion, Obama only 1.4; who’s the big spender?

 
 
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Posted by on August 1, 2011 in Debt