For the last two years, we've been pummeled with the concept that all this spending and the ever rising deficits will lead to our financial ruin. This was a central tenant to this falls elections. However, to fix the deficit, we're going to have to see two things happen: an increase in taxes and a decrease in spending -- with an emphasis on health care expenditures.
So -- in their first move of the new Congress, did we see a move to raise revenue to help stave off the imminent danger of federal deficit?
No.
We saw a "kick the can down the road' response to the problems we face.
As usual, Washington fell down on the job.
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3 comments:
I am well aware that this site prides itself on being fact based and not political in nature – part of why I like reading it so much. In addition, I learn so much in a field in which I know so little.
Nonetheless my main response – that I have not seen articulated - is primarily political. If I understand our past experiences, Bush’s initial tax cuts did not lead to job creation. Nonetheless this is a fundamental myth propagated by some folks who champion tax cuts for the wealthy i.e., “don’t increase taxes on the people who would use that money to create new jobs”.
There is going to be job creation over the next 2 years. How much – who can say? But based on the data and arguments presented here the economy is improving, albeit not at a rate that makes any of us happy. Things will get slowly better, especially over the next 2 years.
Simply put – the argument will be, Post hoc ergo propter hoc, enshrining tax cuts as the fundamental stimulus for job creation. Wise people will know that it is not true. But wisdom seems to be in short supply among the electorate – although I don’t consider that anything new.
Politically this will be devastating and no argument will be accepted that punctures that piece of perfidy; confirmation bias at its worst. Kick the can indeed. FWIW, and I defer to the experts around here. As always, thanks for this forum from which I learn so much.
gene
I assume you are talking about the tax deal, and I sort of disagree. I view it as a second stimulus program. No, certainly not the strongest stimulus, like infrastructure program would be, but the UE benefits, the payroll tax cut, and the extension of middle class tax cuts will help the economy, and I think in the short term, that's more important than the deficit. Certainly, the agreement shows that the talk of cutting the deficit during the campaign was bs, but I think we already knew that, given that few Republicans actually stated a significant spending cut they make.
First, I love this site and think its analysis is spectacular and based in fact and data which is the reason that I come
So I think that this was merely written hastily, but I would point out that this is in fact not the "new congress" which is put in place in early january but instead is the "old congress"
This may change your thoughts on the idea that this is based in the past election, perhaps not. Yet I would merely say that while you are clearly jaded about Washington at the moment, you have put them in a situation of dammned if they do damned if they dont. On the one hand you repeatedly saying "AUSTERIY DOESNT WORK" which i agree with but then also turn around and say "look how stupid they are they even lost their frontal lobes they cant balance the budget by cutting taxes!" but at the same time NOBODY is calling this a deficit reduction plan, so how bout a little credit to them for at least not shooting us in the foot...again...this time.
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