Originally posted by: Bitek
I think all you've proved with the bump is that you are a perennial complainer.
This is the sorts of times we need to have deficit spending. The economy is contracting due to lowering consumer and business spending. Gov't can counteract that by injecting its own spending into the economy and prop it up/mitigate a worsening recession (least so the theory goes.)
The deficits are terrible, but they were terrible before Obama got in, and much of it was a result of actions/consequences prior to Jan 20. At least this spending is
useful to stave off a deeper recession/depression (maybe, hopefully) and hopefully fix some things long neglected. Pres Dummy used deficit spending egregiously and excessively during economic growth and relative peacetime (other than the war he started.) Not too mention to boost popularity not making any tough decisions on things.
The reality: We should expect bad deficits this year, next year, and likely a 3rd at this pace of recovery. The largest parts of the budget are military and SS and medicare. Cutting military now will have a neg impact on the economy just as the same way a GM/Chry liquidation would have had on the auto parts manufacturers. It needs a pass for a few years. SS/Medicare? The boomers are retiring age and broke, now many loosing jobs and the little savings they had in the market. If we pull pack spending there now, there will be severe consequences to the econ and society in general on people who have already got into a bad bind.
Let not forget there are declining revenues due to bad econ. Its quite possible to cut spending to find same deficits if the econ is shit for it. We have to get growth going as job #1.
Future: There will be tax increases. They were too low to begin with, and we got to pay down debt in case of another emergency. We've lived beyond our means for too long. We have to cut SS benefits as well. Raise ages, etc. This will be a race to get econ going before the full brunt of the boomers go on the dole. Rock meet hardplace. (Thank god we didn't throw the SS trust fund into wall st like Bush wanted to do...) Defense also has to come down as well. Other cuts. Just not now or 2010.
All this is political poison. Nobody wants to raise taxes or throw grandma out into the street. Has to be done tho. This is what Obama should be judged by. He's in an impossible situation. Do what's right and be savaged (GOP 2012: Obama loves taxes, hates Granny and the Military.) or take the cowards way out and do nothing (Bush) and be beat up for the debt. He's going to be lucky to get a 2nd term no matter what, save miracle recovery.
I won't flame him now for doing what he thinks is right (tho its so easy to do.) I'm waiting to see how it plays out, and really no one knows how to fix this fucking thing anyway. I'll judge him on being faithful to what he thinks is right, making the hard choices, and hope like hell it works.
There is a legitimate debate to whether stimulus infrastructure spending is more effective vs tax cuts (GOP way.) That won't be the debate. Either side would have ended up w/ record deficits, but the hacks and dopes will argue how its all Obama's fault and take cheap shots and distortions and do their unwitting best to see the right things are not done as they are so controversial, crash the country, and hope to inherit the wreckage.
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