Paul Revere by Cyrus Dallin, North End, Boston

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Seen on Boston Common Today

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Fact: Not a single Nazi was the victim of vehicular homicide in Boston today.

Friday, July 15, 2011

THE REPUBLICANS' DEBT CEILING

UPDATE ON DEBT CEILING BELOW.

Reposted from The Swash Zone by the estimable (O)CT(O)PUS:


By Octopus

First, let’s dispense with an outrageous lie. The current debt under discussion is REPUBLICAN DEBT authorized by Congress and signed into law by former President George W. Bush. The debt in question covers bills that have come due … from two unfunded wars, from unfunded tax cuts and tax loopholes that have benefited the wealthy and ravaged the middle class, from gross mismanagement of the nation’s economy under Republican supply side bullshit.

Over two years ago, I tried to make a point under this post, Lets Go Viral, dated April 17, 2009. I find this date especially curious. On April 17, 2009, President Obama was a newly elected president scarcely 3 months in office. From the beginning, as you can see from my original post, the Tea Thug Party was already organized and marching to the orders of Rush Limbaugh who said, “I hope he fails” – uttered on January 16, 2009 - four days BEFORE President Obama took the oath of office.

My point: Even from the beginning, the Republicans were hell-bent on sabotaging the Obama presidency. For the two years and three months that have elapsed since my original post, Obama has been battered and abused with non-stop vitriol, defamation, outright racism, and endless filibusters from far right wing Republicans (who have transformed their party into a proto-fascist movement that places political ambition above the national interest).

Two years and three months ago, the national debt stood at eleven trillion dollars, nine trillion of which was amassed under Republican administrations – representing 82% of total debt. As of this month, July 14, 2011, the national debt stands at fourteen trillion dollars, of which nine trillion was amassed under Republican administrations – representing 64% of total debt. Yet, the Republicans continue to repeat the same dishonest trope about tax-and-spend liberals. Despite the $750 Billion TARP bailout started under Bush, and the $730 Billion economic stimulus bill to prevent economic collapse, Republicans remain the all-time champions of deficit spending:

64% OF OUR NATIONAL DEBT
WAS SPENT BY REPUBLICANS
(AS OF BASTILLE DAY 2011)

Lets dispense with outrageous lie number two: Last night on MSNBC news, Judson Phillips, founder of the Tea Party Nation, said rich people deserve to have tax breaks because it is rich people who create jobs.

Total bullshit. Rich people do not create jobs, never have and never will. Producers will hire only when there is demand for their goods and services. No consumer spending means no business confidence means no job growth. It is as simple as that, unless you are Judson Phillips, a self-styled spokesperson for corporate proto-fascists. When you impoverish the poor and the middle class, you have choked the engine that drives business expansion.  Consumers create jobs when they create demand for goods and services, always have and always will.

Last year, Tea Thug Republicans ran on a platform of jobs, jobs, jobs. Since the new legislative session in January, Democrats have sponsored seven jobs bills, as follows (source):

  • A bill to end government contracts that reward corporations for shipping American jobs overseas.
  • The Build America Bonds Act – a bill that leverages public dollars to strengthen private sector investment in schools, hospitals, and transit projects.
  • The American Jobs Matter Act – a bill that would give preference in federal contracts to U.S. manufacturers that create jobs at home.
  • The National Manufacturing Strategy Act, which calls on the President to develop plans and policies to help American manufacturers compete and grow in the global trading environment.
  • The Advanced Vehicle Manufacturing Technology Act – a research and investment bill to help ensure that the cars of the future are built in America.
  • The Currency Reform Fair Trade Act - provides our government with tools to address unfair currency manipulation. According to estimates, the bill would have created over 1 million manufacturing jobs by leveling the international playing field for American workers and companies.
  • A bill to promote jobs and innovation at home by offering incentives to patent holders who pledge to develop and manufacture innovative new products in the United States.

All of the aforementioned bills were voted down by Republicans. How many job creation bills have the Republican introduced since January? NONE, NADA, ZIP.   Their idea of shrinking the deficit is sabotaging the country.  For what?  Their stinking political ambition!

UPDATE ON DEBT CEILING REPOSTED FROM "THE FEILD NEGRO'S" BLOG:

"Eric Cantor said O got angry and stormed out of the debt ceiling talks.(Because we all know that you Negroes-even the half ones-can't keep your tempers in check.)

"The President lost his temper and abruptly ended the meeting by walking out of the room." Ahhhh, poor Eric. The mean black man walked out on you? Well stop
interrupting him when he is trying to talk next time.

Anyway, it so happens that
Cantor's account of what happened isn't even true.
(A republiclown lying. So what else is new?) "... a Democrat offered a different view to the
Los Angeles Times: “Left abruptly is perfectly fair," said the official. "But the meeting was over—in no sense did he walk out on it." Hmmm, I wonder who I am going to believe? I will give you a hint; it ain't the people who got us into this mess in the first place. "

7 comments:

Sue said...

excellent excellent job by Octopus! A repub strategist says ONLY 25% of Americans want the debt ceiling raised! The dumbing down of America thanks to the GOP and the teabaggers. How disgusting is that?!

Rational Nation USA said...

Octopus is correct. Producers will create jobs only to produce the product or service consumers want.

The only thing that produces wealth is the production of product that fills the demand created by the consumers of said product.

For wealth to be produced at home requires said demand for product to be produced at home (USA, thus creating American jobs and putting money in the pockets of the consumer to purchase the product they want that created the demand in the first place.

All makes sense.

Government cannot create demand nor jobs.

Capitalists and government have failed to understand (either by design or ignorance - take your pick) by moving jobs offshore has hurt American interests. As the trend continues, and it likely will under both repub. and dem. administrations remember Clinton and NAFTA)our nation becomes poorer.

Government can and should provide incentives for businesses to fill demand by creating jobs at home. The market will do the rest.

As to the debt. It is time to Cut, Cap, and Balance. My view is the debt ceiling will be raised. It is likely not much of meaningful cuts, caps, or balance will result of the lame negotiations now occurring in Washington.

The two party system is working beautifully as intended. They are propping each other up and power shifts just as intended while the general direction continues.

Vitriol aside Octopus a well reasoned post.

Jerry Critter said...

"Government can and should provide incentives for businesses to fill demand by creating jobs at home."

Very true, RN. Unfortunately, now government incentives reward businesses for creating jobs overseas and only increase profits (tax cuts) which, by themselves, do not create jobs.

When there is a recession, I think government has a bigger role to play. And that role is to stimulate demand. Demand drives job creation. Demand needs to come first, then jobs will follow.

Help stimulate demand and reward job creation, and the market place will do the rest.

Rational Nation USA said...

Jerry - How does government stimulate demand? By providing the financial ability to purchase that which they desire and could not otherwise afford to purchase?

A government managed economy in a nutshell.

Continuing the logical progression, given human tendencies, the ultimate result is dependency on the state.

This is where Marx, and his "utopian" ideal of communism went wrong IMO.

Please counter with an argument that invalidates my assertions.

Jerry Critter said...

"...given human tendencies, the ultimate result is dependency on the state."

In a few cases, maybe yes, but in general no. I have more faith in human nature than you do. Most people want to get off of public assistance as soon as they can.

Octopus said...

"Government cannot create demand nor jobs."

Historically, this is not true. Government has always had a role to play in terms of increasing the money supply, lowering base interest rates, and easing credit. These actions are traditionally the role of the Federal Reserve and have been employed successfully during every recession since the Great Depression.

Traditionally, stimulus programs in the form of tax breaks, incentives, and increased public spending that target the middle class have been effective methods of putting money in the pockets of consumers. In economics, stimulus spending is known as the "accelerator effect," i.e. when new money enters the marketplace and continues to change hands from consumer to merchant and back to consumers again. The accelerator effect increases the velocity and volume of economic activity.

For example, if tax breaks for the wealthy have an accelerator quotient of 0.1, it means for every stimulus dollar spent, only ten cents remains in circulation. If public works and infrastructure spending have an accelerator quotient of 1.5, it means every dollar spent will remain in circulation 15 times longer than tax breaks for the wealthy. That is why tax breaks for the wealthy is absolutely bogus. Nothing has ever trickled from the top to the middle class, and the concept of supply side economics is total bullshit and economic heresy.

Why, then, is this recession so intractable and resistant to tradition remedies? Several reasons:

1 – This recession is far deeper than any one expected, and the recent Economy Recovery Act (“the stimulus”) was too little too late;

2 – The structure of the economy is different today than during past recessions. These days, any increase in consumer spending is more likely to benefit our global trading partners because our manufacturing base has gone overseas. In other words, the loss of manufacturing has crippled the accelerator effect because a larger slice of the economic pie goes overseas to our trading partners.

3 – Extreme income inequality. In the 1950s, the ratio between the highest income earners versus the lowest was 100:1. Today the ratio is greater than 500:1 It means the middle class has become substantially poorer in relative terms, has no discretionary funds to spend or save, and is mired in debt. Thus, no middle class consumer spending - the traditional engine that drives economic growth. In other words, the USA has finally turned itself into a Banana Republic where the rich clamor for more tax breaks and more favor while the rest of the country goes straight to Hell.

The stimulus bill averted a catastrophe, but it has not created the expansionary results that create jobs (and in this political environment, it is highly unlikely the politicians, and the thieves who pay them, will do the right thing).

Stimulus spending that focuses on infrastructure, healthcare, domestic projects, and unemployment are the best and only ways to keep money within our borders. Furthermore, the tax code MUST be changed to put more money back in the hands of the poor and middle class. Finally SCREW THE PLUTOCRATS (damn bastards) !!!

Octopus said...

Two quickies to add to the above:

4 - Rebuild our domestic manufacturing base

5 - Invest in alternative energy and build a 'green' energy infrastructure.

In other words, the kinds of investments that will keep our money within our borders.