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Re: Constitutional issue

By: Cactus Flower in ALEA | Recommend this post (0)
Sat, 16 Jul 11 10:39 PM | 35 view(s)
Boardmark this board | The Trust Matrix 		Msg. 05461 of 54959
(This msg. is a reply to 05460 by tkc)
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Hi tkc,

I think most folks are somewhere around the place you, I and Hari are.

Following the advice of those who thought the original stimulus, however large it seemed, needed to be about 50% larger, I fear we are now trapped in a high unemployment, low growth economy. In my view, austerity will lead to lower growth and higher unemployment, whereas stimulus will lead to higher debt but also higher growth and lower unemployment. I choose the latter as I think it is a less bad option, especially in an economy which has been characterised by low inflation and hence low interest rates.

At the same time, I think we can partly offset the need to borrow by increasing the tax on the wealthiest quintile.

The US appears to have a vastly inferior infrastructure to other advanced economies. It is disappointing to see that so little has been done in the last two or three years to improve this situation. I think the US is increasingly ungovernable.




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The above is a reply to the following message:
Re: Constitutional issue
By: tkc in ALEA
Sat, 16 Jul 11 10:25 PM 		Msg. 05460 of 54959

Hi CF, a year ago or so we discussed the debt problem, the soft economy, you advocated additional stimulus - which I concurred w/ only if it was targeted to create jobs such as rehabing infrastructure or reduce oil dependency - while I leaned toward spending reductions, particularly in public employee benefits.
I never envisioned this fiasco on not raising the national debt. It's nuts. The old GOP has been mutinied. We understood the old GOP mantra of less government, less regulation and lower taxes. But this extremism if successful could cause irreparable harm for years, if not decades.
However some of what I'd advocated has occurred, albeit via the back door. Much, much of the stimulus money that had been used to retain jobs in State, Local and school districts while it worked only postponed the inevitable. When it ran out all those jobs and more were lost anyway. Public employee unions throughout the Nation were forced to accept lowered benefits and minimal if any raises, while significant job reductions were made. One or more GOP controlled States eliminated bargaining rights for public employee unions (extreme and hopefully unlawful). NYS recently passed a property tax cap placing local gov'ts and school districts into further austerity. In the short term there will be much more pain. The long term impact only history will judge. As I favored this, I hope it ends well.
As a centrist I hope for compromise, cut spending where it can be (i.e. military, negotiated pricing on federally purchased drug, the inevitable waste, fraud & abuse, and outdated bureaucracies that have outlived their net benefit) and increase revenues through elimination of tax looppoles, unnecessary corporate tax benefits and increasing income taxes on those earning more than 400% above the mean established in their residential area in the out years. I think Simpson-Bowes had it about right.
In summary, I agree it's scary that the extreme can mutiny their party and control one branch of Gov't which in effect holds the remaining 80% of citizens hostage to their whim. Hari is right, an educated voting populace would swing the pendulum. Unfortunately, especially given the recent Supreme Court ruling, we won't have that. Good luck to us.

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