This is just wrong. Everyone (even illegal immigrants) does pay taxes. Sales tax, property tax, vehicle registration fees, FICA, Social Security, local and state taxes, gasoline tax, and others. The Federal Income Tax is progressive, as are most state income taxes, but that is not the norm by any means. As our system is structured now, the poor and middle class pay a larger share of their income in taxes than the rich do.
As I agree very much with the belief of thrift, but we're not in the circumstances for this at this juncture. When there's no other liquidity in the system, the government must be the one to inject capital into the economy. The government raising taxes, increasing interest rates, cutting spending and kicking the economy when its down is what caused the great depression. We weren't jump started out of it till World War II in which the deficit become 120% of GDP. I think the democrats are wrong to want to increase taxes and have the cost overhang of the healthcare plan pending, but the republicans are very wrong by believing and crowing about balancing the budget and cutting spending. I'm all for immediate spending on roads, subsidizing new businesses and such and opposed to new government bureacracies that will inhibit commerce.
The Boehner plan cuts $700B in spending with no increase in revenues. The Reid plan cuts $2.2T in spending with no increase in revenues. Who exactly is being "thrifty"? The GOP can't even get their own caucus on board with their plan - that's the extremism.
Total, utter basso nonsense. Obama endorsed the Gang of Six plan. He endorsed numerous proposals out there as acceptable. He opened the door to SS and Medicare reforms. He's been open to proposals with and without tax increases. Can you name a single issue - just ONE - that Boehner has shown willingness to compromise on? You are both willfully ignorant and flat out stupid.
I don't think there's ever been a political party that embraced Keynesian economics so quickly, then dumped it to the wayside. Coupled with their zeal to not compromise, insistence on ridding the country of policy solutions (nothing that resembles a tax increase ever! kinda like telling the fire department to never use hoses), and their abject failure to realize certain economic principles, and their marked aversion to regulation---even after the most massive failure of unregulated markets ever---I'd have to say the Republican Party is more or less crazy these days.
well krugman....both sides are at fault and a balanced budget amendment to control spending combined with higher effective tax rates are needed. this was really a worthless article to post because the democratic and republican plans don't go far enough and clearly both sides are wrong.
A BBA is a terrible idea. In a recession, revenues automatically go down and spending on social services goes up. A BBA would just make everything worse by forcing additional spending cuts at the same time. That's just all around silly.
anyhow, did it occur to you that it might force more efficient spending rather than just dumping money on problems? have states imploded with their balanced budget amendments? ...wait...nevermind you are right. yeah it's just silly to balance the budget when we have debt and deficits on the verge of spiraling out of control. you are right. let's just keep going down this path and just expect our government will never be nimble enough to efficiently adjust spending when necessary.
A key example of Republican economic fallacy. Deficits are not a problem so long as future GDP growth outstrips them. Used responsibly, they are a very effective policy tool. Also, deficits have many outside influences that a government cannot prepare for---stuff like Wall Street going ka-blooey. You can see how the states and their balanced budget amendments really helped America---what with their constant layoffs. What happens if the federal government has to overstep this amendment? Who bails America out then? I don't even understand. Mainstream economics has long since accepted that deficits can sometimes be beneficial. Obviously, the situation is a bit out of control right now, but to rectify that by cutting off all deficits is akin to a company that has to pay high interest rates suddenly deciding that they will never ever take a business loan again. No matter what. It's the same deal with the "no new taxes". It's just f**king r****ded to be cutting off entire sections of policy choices based on arbitrary whims. Never trust the Republicans when it comes to economics. They're the party that brought America "supply-side" voodoo, and whose foremost expert on economics...is someone who published six books on Austrian economics. The f**k. I just love pointing that out, because to anyone schooled in economics, it's like watching creationists hijack a debate about biology.
They would have if it wasn't for federal aid. It just illustrates the stupidity of legislating financial inflexibility.
This article is pointless and the real problems are not being addressed nor talked about. Can we please call out the pentagon and end these debt sucking wars? Also, when will our congressmen/president have the balls to step up and address this issue? The top 1% are hoarding cash and raping the country and getting away with it even in these conversations-but, all these guys are personally benefiting so they'd rather just make it a democrat/republican issue. http://fightforbetterus.blogspot.com/2011/07/how-kochs-shady-oil-speculation-may-be.html This whole thing is trash and until we elect accountable representatives, we're ****ed.
A BBA is up there with “Let’s go back to the Gold Standard” as the dumbest idea ever. Especially since there are going to be emergencies when it will be necessary to use deficit spending, like oh, I don’t know, WORLD WAR II AND THE GREAT DEPRESSION. Either an amendment will needlessly hamper us during times of great emergency, or it’ll have enough loopholes to deal with those possible emergencies that it becomes useless, and Congress will just use further accounting fixes to make the budget seem in balance ( like Bush did and Obama didn’t).
This is what Boehner says about the teatards- Try and wrap your head around that. The Republican Speaker of the House is straight out admitting that a significant part of his caucus want to throw the U.S. economy into chaos. That is treason.
Wrap your head around this article and realize our politicians-all of them-are selling us out in the name of special interest. Come on Krugman, step up your game: http://fightforbetterus.blogspot.com/2011/07/why-is-most-wasteful-government-agency.html
You are correct, and I believe that he gets paid to do it. Others posted their belief that he gets paid previously, and I think it's true. Also note that he has fairly recently posted something about being at computer/electronics conventions that are supposedly for people in the industry. One reason he would be there is because he makes money doing the kind of crap he does on this site, and is looking for ways to improve that business. Also note that any thread denouncing a Republican he always will try and derail. He'll post something "bad" that a Democrat has done in those threads in an effort to change the subject.
