At this point, there can't be anyone left who truly believes that the debt ceiling debate taking place in Washington is really about what's good for America.
The truth is it's about the 2012 election – and the party that wins the debt ceiling debate will be the party that comes out on top next year.
It's politics – pure and simple.
Republicans and Democrats have their own respective agendas heading into the 2012 election. And with 16 months to go, there's just enough time for actions taken now to work their way through the system and swing the economy in one direction or the other.
Now, I'm not a believer in conspiracy theories, but I am a firm believer in Public Choice Theory. That means I believe we can make clear statements about what economic conditions each party would like to see 16 months from now – considering their own selfish political points of view.
The Democrats would like to see rapid growth, with unemployment coming down sharply. They don't care so much about whether inflation is ticking up a bit, or whether an over-large budget deficit may cause trouble in the future. If they get elected in November 2012 they figure they will sort out any problems after the fact – particularly if they can recapture the House.
Conversely, the Republicans would like growth to be sluggish, with unemployment stubbornly high. They also would like to make the painful decisions that bring long-term growth now, so that they can benefit from the growth and not suffer the political cost of the pain if they capture the Presidency and ideally both Houses of Congress in November 2012.
Both parties, of course, have strong beliefs about what policies work better, about what policies are better for the interest groups that support them, and about what policies are best suited to their ideology. But at this stage of the electoral cycle, they're pragmatists.
Here's how the election cycle breaks down:
- The time for politicians to put their favorite ideas into effect is in the first year or two of the election cycle, after they've won a big majority. That's why President Obama and the Democratic Congress spent so much political capital on the "stimulus" and the healthcare bill in 2009-10, and tried to get a "cap-and-trade" carbon emissions program passed.
- In the run-up to the election from next January onwards, the main effort will go into rewarding powerful interest groups that provide money and votes, and to electorally popular gimmicks.
- After the election, there's a short period in which the winning party can do any unpopular, "root canal" stuff that appears necessary.
- However, with the election still more than a year away, the natural impulse of both parties is to ensure that the economic picture faced by the electorate the following year will be as they wish. That's why President Nixon abandoned the Bretton Woods exchange rate system in August 1971, it's why President Kennedy advocated his supply-side tax cut in 1963 (it was passed early the following year) and it's why President George W. Bush pushed through capital gains and dividend tax cuts in 2003.
What Republicans Want to Get Out of the Debt Ceiling Debate
The Republicans currently have less power than the Democrats, but their objectives in the current negotiations are fairly clear. They want as big a spending cut as possible and as much progress towards reducing the deficit as possible.
That's not just because they like spending cuts and deficit reduction. They also believe that spending cuts will result in public employee layoffs and may cause a short-term impediment to the economic recovery – even though they will improve long-term growth.
Short-term pain for long-term gain suits the Republicans fine, as any economic slowdown and increase in unemployment will happen before November 2012.
Conversely, the Republicans don't want marginal rate tax increases, which would affect long-term growth prospects, and for which they would be blamed by the electorate.
However, they don't mind tax code rationalization through the elimination of tax subsidies. Such reform would have mostly short-term effects, resulting in the closure of subsidized activities with accompanying job losses.
Capping the home mortgage deduction for high earners, which would probably cause a further lurch downward in the housing market, is also fine. The Republicans also probably don't mind capping the charitable tax deduction for high earners. The vast majority of charities are natural Democrat constituencies, except for churches, whose donors are predominantly middle-income people rather than the wealthy.
The Republicans also have a clear self-interest on monetary policy, though they are less able to affect that directly other than by harassing Federal Reserve Chairman Ben S. Bernanke at Congressional hearings.
A "QE3" program of bond purchases would make the federal deficit easier to finance in the short term and boost the stock market while increasing inflation in the longer term. It would thus be bad news for Republicans, and for older people living on savings, a natural Republican constituency. Conversely, higher interest rates would help savers and slow the economy, both natural Republican wishes going into an election year.
Again, there are no conspiracies involved here – just the politicians' self-interest.
So when scoring the debt ceiling debate and other economic policy moves this year, you can put a tick in the GOP column from all the policies on the above list. Needless to say, some of the wins will be accidental from Democrats failing to figure out where their true interests lie – and likewise GOP ineptitude may hand the Democrats a few freebies.
Tomorrow (Friday) I will look at the motivations behind Democratic policy-making, and we'll see what's really behind that party's side of the debt ceiling debate.
News and Related Story Links:
- Money Morning:
Looming Loss of Federal Incentives Darkens Future of Solar Power Stocks - Money Morning:
America for Sale: Liquidate Assets to Avert Debt Ceiling Crisis, Republicans Say - Money Morning:
GOP Spending Cuts Fuel Readers' Federal Debt Debate - Money Morning:
Obama Deficit Plan Sets Stage for Capitol Hill Budget Debate - Money Morning:
Even on the Brink of a Government Shutdown, Congress Still Doesn't Get it
A sad commentary on politics in America. Neither party cares about what happens to the general middle class. The republicans only care about the graft and corruption how much money they can get from special interests like oil, and drug companies. I always wondered the difference between lobbyists and bribers. Why are they legal? Why are there no term limits for congress, they have them for the President. The campaign for the Presidency starts the day the President is elected. Great minds and thinkers don't run for President because with our adversarial two party system nothing gets done well but grid lock. Buy silver and gold for as we keep printing new hundred dollar bills the only good is that now we are going to have color on them which the downside is that it probably costs more to print them.
You left out one important point. The tea party is demanding spending cuts and will give a primary challenge to any republican that caves on that issue alone. They could even split the party if republicans don't hold firm.
This is a great article, and absolutely correct! I have to believe that EVERY middle class American who understands what is going on has to be furious with Washington in general. I realize that politics is a dirty business, but I have to believe that when one political party is willing to make moves to keep unemployment high for political gain, that party will receive a negative payback at election time. Understand, this is not about using the bad economy as a platform to win an election; which the Democrats obviously did in '08, this is about a party that is willingly strategically doing everthing they can to hold back the economy for political gain. In my opinion, this is criminal, and if Obama plays this correctly, the Republicans will pay an awful price for their miscalculation!
If any of the clowns in washington were making decisions about their own households or personal business, they would all be making better decisions, and the truth about what it takes to survive would be clearer. I would bet 95% of congress would agree on exactly what to do in the best interest of their constituents. Politics are necessary only to keep one side from running away with things, but it's become like a sporting event where it's all about the bragging rights instead of the fundamentals. I'm sick of it all since nobody really is held accountable.
"Official Treasury Reports: Coffers Full Enough to Cover Social Security, Medicare, Medicaid, Veterans, Federal Salaries and Interest—Without Borrowing a Dime"
Tuesday, July 12, 2011
By Terence P. Jeffrey
(CNSNews.com) – President Barack Obama told CBS News today that there may not be enough money in the U.S. Treasury to cover Social Security checks after Aug. 3 if Congress does not agree to lift the legal limit on the federal debt and allow his administration to borrow more money.
"I cannot guarantee that those checks go out on August 3rd if we haven't resolved this issue. Because there may simply not be the money in the coffers to do it," Obama told CBS News anchor Scott Pelley in an interview.
However, according to the Daily Treasury Statements published by the U.S. Treasury Department, the ongoing flow of federal tax revenue since the Treasury declared that it had hit the debt limit on May 16 has been more than sufficient to cover the combined costs of federal spending on interest payments, Medicare, Medicaid, Social Security, the Veterans Affairs department and federal workers wages and insurance benefits (including wages and insurance benefits for military personnel).
Read the article here:
I think you should stick to telling me how the choices the politicians are making will impact me as an investor otherwise you are simply stating an opinion about the motives of the elected officials positions. This kind of journalism is unhelpful and I will find another source for my financial information.
dems were n charge and did what they thought would work 2 get the economy going. it did not. it will not.
The Politics of inaction. The corruption is almost complete in our political world. Money predicates every thing. The more money the easier to sway votes. Meanwhile millions of Americans are the pawns in this travesty. This is why education of the majority of the poplulation to the real solutions that are available but through deciet and deception of our current political process prohibits any or all of these solutions from ever becoming publically known.
This national debt is hurtlling the US towards 3rd world status…as a solution we should bring all troups home and abandon IRAQ,AFGHANISTAN, AND QUIT BOMBING LIBYA. We should cut the federal budget 30%over the next 5 yrs…by cutting every category OF federal spending by 5% per year for the next 6 yrs….EVERYTHING…NO EXCEPTIONS…AND I MEAN CUTTING MEDICAID,MEDICARE FEDERAL PENSIONS,FARM SUBSIDIES,OIL SUBSIDIES,SOCIAL SECURITY…ALL OF IT…..BUT NO POLITITION HAS THE SPINE TO DO IT!
Too Machiavellian. Your understanding of economics is much stronger than your understanding of American politics. Raw self-interest IS always a primary factor. But if you think that's ALL that motivates human behavior, you are mistaken, and your analysis will be deficient – as it is in this case.
We all know that our elected representatives DO NOT really represent OUR best interests. Instead they represent the interests of the PARTY and the special interest groups that support them. And the Republican party has always been the party of the "RICH". Unfortunately, the Democrat party has also become the party of the rich also. Why? Because it takes so much money to run for office now that any Congressman or Senator is so beholden to their "MONEY" backers that they cannot represent the "COMMON" people of their district or their country. In other words, the American people are "SCREWED". And the "Tea Party" is not the answer either. But will it take marches and riots in the street to wake Congress up to the fact that they have a job to do and it doesn't mean backing the "party" line, it means doing what is GOOD and RIGHT for the common American citizen. Despite what they think, the "rich, fatcat" that is their "neighbor" is not the common American citizen. And, yes, he is a traitor to the country and the citizens of the United States when he puts himself and his interests above the interests of the citizens of this country. Two centuries ago we fought a war to free ourselves from such ideas.
To make the statement, "It's politics – pure and simple" is true. However, the politicians need to get off the political rhetoric and start solving the problem or else we are doomed to a bankrupted USA.
You also simplify the argument when you say that Democrats want rapid growth while Republicans want long-term growth. Either way would be better than what we have now. Politics is the problem. We are at a stalemate because neither party wants to give in. The end result is that nothing of any value gets done. This mixed bag of good, bad and ugly legislation coming out of Washington is causing more problems than it is solving. We need sanity and smaller less intrusive government. However, because of the way things are structured we are getting larger and insanely intrusive government.
I fear that if we keep up with this insanity we will all need to start learning Chinese.
Politicians are vermin.
How about we just boil this down to good 'ol financial responsibility. They're spending our money. Whoever takes the least amount or our money and spends the least amount of our money are the heroes! I think getting rid of unfair taxes and regulation is why we our Founding Fathers created the greatest nation in human history!
Having practiced law for years and handled my own investments during all that time with an eye to practical politics and macroeconomic currents I deeply appreciate Hutchinson's analysis and frank recommendations. I hope more and more readers do as well and follow his suggestions in regard to influencing our representatives in Washington, or at least attempting to.
This situation is extremely bleak, but not hopeless! I think the article's analysis is pretty accurate when you consider how BOTH PARTIES have no concern for the U.S. Economy or our future.
We simply MUST stop looking at this as "Our Debt". This was CREATED by the banksteres, and we MUST hold them responsible for THEIR DEBT. There is only ONE option to saving the economy, and it requires three (3) steps.
1. Seize and Audit the Federal Reserve, under the laws of RICO for racketeering and illegal holdings. That means the BANKERS pay and lose. There are many laws they have violated.
2. Stop all of the foreign wars that are bleeding this nation to death, and return our troops home, immediately.
3. Return the Bill of Rights and Constitutional law to the people NOW. There should be vast investigations of all acts of treason and violations of citizens rights and destruction of our Republic.
Now we DO have a chance here, but we will probably blow it by being stupid, in which case we will deserve what we have coming.
The Best candidates for President in 2012 might be a team of Congressman Ron Paul and Governor Jesse Ventura. The Republicans and Democrats are in bed with the banks, and have ruined this nation. If we don't get ourselves free now, it won't be necessary later to explain to everyone WHY all this happened. We will all know where we failed when the disaster hits.
Sounds like the Republicans are finally doing the right thing.Doubtful that entitled Americans are going to accept the long term cure,which would be painful in the short term.If the Republicans are finally walking the walk,I may go back to voting for them.
This whole debate is so negative and political. Its all about blaming the other party. This whole thing sounds like a big set up by Obama so he can blame the other party, but I do not see or hear how he is going to the othe party to work this situation out to restore confidence.
Why can't the people we elected in Washington DC have the ability to retract there heads from thier anus and get down to some serious and collective decisions to benefit the American people instead of thier political agenda ?
Want to cut the deficit ? Balance the budget ? Pay for the entiltlements ?
STOP PAYING FORIEGN AID to any body !
GET OUT OF IRAQ, AFGANISTAN,KOREA,JAPAN,LYBIA, and bring back our armed service personnel from any and all countries. (LET THEM TAKE CARE OF THEMSELVES )
We need to take care of OURSELVES and OUR FAMILIES 1st. and foremost
Barack Obama came to office in the middle of a financial crisis caused largely by Fannie May and Freddie Mac and a multitude of government "affordable housing" mandates. He spent the first year and a half forcing "Affordable Health Care" on us behind closed doors in a straight party vote notwithstanding the fact that the existing government public programs, Medicare and Medicaid, were known to be heading for bankruptcy. Only a communist ideaologue interested in destroying the capitalist base of this country could do what he has done in his short tenure.
Any time the dems come even remotely close to what repubs want, they (repub) back away from their stance..call it the party of "NO" and that means "NO, even if its exactly what they wanted.
Repub wanted 85% cuts..dems came to 83% cuts..Result ? "NO"
Repubs wanted 15% revinue..dems came to 17% revinue..Result ? "NO"
Best way to beat the republicans is to just "attemt" to give them what they want and they will beat them selfs at their own game. America is starting to wake up to what the repubs are all about. I dont know any republican (personally) that is happy w/ the party. I was a republican.
How many jobs were created under Bush in 8 yrs? "O" Since then? Wayyy more..dont forget..as cuts are made it adds to state employees, teachers, firemen, police,EMS, which adds to the 9.2 recently.
Why are the repubs making it harder to vote lately? MMmmm..can I say..writting is on the wall?
It is unconsionable to say that getteting re-elected or the "next election" takes precedence over fiscal responsibility. The antics on display in Washington are a clear indication that the United States is now an empire in decline. This is the End Game. We are living it and taking part in it for the rest of time.
We must look like complete morons to the rest of the world, since all eyes are now upon the good old USA to see what happens in the next 17 days to fix the crisis caused by the irresponsibility of our political parties. To even think that conversations are happening across the globe about the crisis we are in is immoralizing, since this country is supposed to be the strongest nation in the world…but is it? Maybe we handed that title over to China awhile ago??
First, I would like to thank Mr. Hutchinson for clearly identifying the biggest problem that we face in the US today is the two party systems. The government is driven by politics in where elected officials on both sides are unable to make the tough decisions to do what is best for America. The sad part is that the majority or the comments from readers are split on the same party lines. How do we get through our own prejudices as a people and a country to make things better? Get rid of the two party system…
I broke my neck after having paid into Social Security for 20yrs. Now I hear you saying that taking away my $900 a month Disability payment and Medicare/Medicaid insurance which totals $9600 for SSDI and $18,000 medical expenses yearly for a total of $27,600 a year will save the U.S. All the while paying 1 million a year per soldier in Iraq or millions for every missile launched in Libya, totaling BILLIONS every year. Yet you are all saying taking away my families and my livelihood is the cure for this country. Come on now bringing one soldier home for a year could pay my expenses for 37 years. Can't you all see how ludicrous this is.
Not just for me but all the elderly retired living on a measley $1200 social security check which if lucky won't have to go to pay the 20% NOT COVERED BY MEDICARE, particularly for those who saved all their lives to have the banks take all their savings in one way or another all the while they receive Trilions in TARP funds.
I detect a more than slight bias toward the left in your piece. This debate may very well be about the 2012 presidential election but it's really much more than that. It's more about power and control than anything else. Obama believes his Marxist ideology is winning the day because he perceives himself more of an international leader of the socialist European school than he does president of the U.S. All you have to do is look at his policies and his attitudes; they are not consistent with either protecting or preserving the American people or our way of life which is based on the rule of law as it is written in our U.S. Constitution, our Declaration of Independence or our Bill of Rights. Obama is a One World groupie and as such must satisfy his handlers, i.e. George Soros, etc. As for the GOP, they are neither wise nor are they interested in making the hard choices that must be made in order for our nation to get back on track; the "old guard" isn't interested in anything but preserving the status quo. The American people know all of this and are going to stand on our founding principles regardless of what either of these leaderless groups do or don't do. What is the alternative to freedom? Tyranny is not an option.
Why the total twist of truth? Medicare and Social Security have worked and will continue to work if we can keep the politicians hands out and have them put back what they have already removed. There seems to be plenty of evidence showing that there is plenty left to pay out indefinetly at this time and then we have jokers saying it's about to go bankrupt. Whatever the elite meme of the day is and the sheep will follow right into the mouth of the WOLVES!!!
The comments are as revealing as Martin's article. I find it amazing (as one of the "bazilllionaire" class) that so many people apparently are on the dole and/or have such a vested interest in raping their neighbor's wallets that they would believe the political nonsense to which Martin is responding.
Look, if someone stole your credit card, maxed it out to a tune of nearly twice your income, and threatened to send the police, called you names, and demanded that you increase your spending on the minimum payment, what would you do? If someone else said he would stop the spending and relieve you of the debt burden, what would you do? If you knew that in the first case, you will never have anything but work until you are old enough for the Salvation Army, and in the second case, you will lose everything now while the guilty prosper, but you could live another day and maybe prosper by the end of the decade, which would you choose?
All of these choices affect my family immediately and permanently. As a "bazzillllionairreeee" earning a living as an LLC, the tax rates and the spending affects how, where, and with whom I can do business. To me this isn't an academic exercise, it is exactly where I am now. Unless the Dem's fail and are effectively destroyed, I am quite literally working 7 days a week just to fill my belly. I have a hope of escape, but that means my ship comes in, and I get out before it's too late. If the Rep's suddenly grow balls – ok, so I will be wiped out, but I have a food stash, and many talents. Heck, some of you fools might need my talents.
These questions literally affect whom I sleep with. And where.
After taxes, a 4% tax rate represents an 8% bite out of after-tax, after-debt service income. In fact it represents almost 30% of the "profit" on the business. (30% of what could be plowed back into the business for hiring or expansion.) And I am supposed to invest into this to bail out the lazy dopes on this website who think my interests are "political"? You guys gotta be kidding.
My main client is working to expand off-shore: And if I get a chance, I will follow him. I have had it with babies and backstabbers and whiners: I want fertile soil and good rains. And the only people I know who fit none of the categories are either too far down the food chain to help the economy, or they already have their hot tickets.
Personally, I hope you get what you deserve – money printing to the sky, and an economic implosion. Why? Because I am perverse. But for the country, though, I hope you and Martin are forced to eat crow (as Granny used to say). The latter case might be a bit expensive, but the innocent will prosper, and heck, they will want my talents.
Just sayin…
like it really makes a difference as to which party gets in,,,,you need to wake up to reality, its predetermined already who gets in, do you guys like financing all these wars….and do you really know why, you should,,,,and it is all about money and oil,,,soon the picture will become clearer
I hope tomorrow's analysis is better than today's. There's a big difference between financial and investment analysts, economists and political "scientists." Stick with what you do best.
I think you miss the most miss the difference between the Dems and Reps, there isn't much. How fast they spend our money is about it. We need to stop penalizing people (tax for working hard) for making money and start to congratulate them (no income tax) and start taxing consumption. Revenues grow to the gov., business grows, employment grows. Sounds much closer to freedom to me.
Topeka has it right. The problem we now experience is decades of bias via pay-offs of one sort or another. Either its through SSI, Medicaid, Medicare, tax codes or campaign contributions. If someone is willing to do the hard things today, we all benefit tomorrow its that simple. Our parties have been leading the country as we all live, FOR TODAY and we'll worry about tomorrow when it comes.
If you don't have skin in this game, its unlikely you have an unbiased outlook. If you don't pay taxes, your interests lie with the DNC to maintain your position. If you do, you are looking for the next tax break. We need systems that have no benefit of influence in the outcome, i.e. a fair tax or flat tax. I like the fair tax for the simple reason its based on buying power of anyone and everyone, citizen or not. Once in place, it benefits no ones agenda. Social Security isn't working, nor is Medicaid who ever mentioned that. If you think government is the answer to your ills, try out their systems for a while. Trust me, unless you have nothing, it aint better…I know, I'm a federal employee and don't utilize the systems that are inherintly ineffiecient.
This country became what it is or almost was based on the ability of the individuals drive, desire, ambition and freedom to become what they know is best for them. There will always be "classes" of folks since we are all different. Celebrate this, don't use it to degrade one another. We need the "working stiff" everybit as much as the "financial guru" and in some ways more. The beauty of America is, if you don't like your lot, you can change it all by yourself. I"m living proof, been a Division Manager of a Fortune 500, self employed, now federal employee. I hope they cap the deficit to end this ceaseless spending and save what's left of our country. I'll take short term pain for long term opportunities, I'm going to be old some day too…!! If everyone really knew what goes on in government, there'd be a tax mutiny that day…… Its time for government to start acting like what it really is, a Service Industry, a business.. Claiming itself as "government" gives them an excuse to behave poorly on many levels.
This country lacks a terrible need for responsible citizens, willing to be accountable for themselves, by themselves that's why this country was started to begin with, read your history. Wriiting on blogs such as this by folks like us aint gonna get it done. What people DO matters more than what they SAY. Its time for talking to take a back seat to DOING.. Topeka may come across as self serving and arrogant, but they are doing, taking responsibility for their lot in life and not depending on hand outs. That's what got us where we are. Those wanting to tax wealthy should consider this: The wealthy create jobs and pay taxes, poor folks don't. If you keep taking from those wealthy folk, one day you are going to wake up to as Perrot used to say; "a giant sucking sound" as those wealthy folks find somewhere else to be. Then you have no job growth, no tax revenue, no future. Be careful what you wish for, you just might get it.
As I tell my federal colleagues, I'm so thankful for those greedy businesses, corporations and individuals for without them, there'd be no need for us nor could anyone afford our services…!!!! Capitalism has its faults, but I'll trade those for the freedoms it brings anyday..
I have been checking into what percent of the national debt was incurred under presidents from either main party. Over the last 30 years, the debt ceiling has been raised by $2.83 under Republican presidents for every dollar it was raised under Democratic presidents. I understand that the tea party movement and others are pressuring the Republicans but I still find their sudden aversion to debt disgusting.
Martin is clearly a self preservationist who's primary goal in life is to grow and preserve his wealth and I don't blame him one bit, which is one reason I am a subscriber. His step into the political arena smacks of desperation as he knows life gets harder for all if the US gets downgraded. He knows the Republicans hold the cards right now so of course you blame the one who threatens you the most. They all are or become liars. The difference now is that since Bill Clinton, it is no longer a death toll if you blatantly lie in public as there is no consequence . Move over Bill, Obama has taken it to a new height. We are where we are not because of Congress but of who WE ELECTED to those houses. Americans are no different than any other nationalists. We are by and large ignorant sheep begging to be led, the difference is we can chose with the ballot whom the shepherd shall be, on emotion not fact. Most of us don't even vote, just complain after the fact! How many voices in Congress today have been part of securing our current lot in life over the past 20 years or more, voting for the very programs that have trapped us today? Why are there not term limits for Congress? Why do the President and Congress NOT have the same retirement choices we do? Why are they exempt from the very healthcare bill that we are expected to live with? Why are seniors and veterans threatened with holding of payments while every member of Congress and the Executive branch gets paid? Paul Ryan gave us a plan to survive. The ONLY plan provided by ANYONE. Why isn't that plan the basis for negotiations and compromise? Tyranny your new name is democracy and your house divided is about to fall+
The Founders had it right. They stated that the federal government only has 4 jobs. 1. Establishing and maintaining law and order ( and thus protecting our God given rights enumerated in the bill of rights and the Declaration of Independence), through a police force and the courts,
2. Establishing treaties and dealing with foreign trade, and 3. National defense and the security of our borders. 4. The establishment and maintenance of our currency based on the gold standard. That's it. They are not supposed to be doing ANYTHING else. The only thing the founders missed is congressional term limits, which we should establish now.
If we returned to the system of government established by our Founders, virtually all of our problems would probably resolve themselves.
Great post Dakota Joe.Especially like the fact that you work in govt and see just how inefficient and wasteful it is.Of course,anyone who attended the typical public school would know it.I think the end of public schools and a total voucher education system might be the single,most beneficial thing we could do to turn this country around.
I totally disagree on the purpose of the Democrats is to grow the economy regardless of inflation. If this was their intent we would have a growing economy now with all the money that has been spent.
Did I mention that politicians are vermin?
What nonsense. The Republicans don't want "growth to be sluggish with unemployment stubbornly high" and are the only ones who have put forth a plan. They believe and correctly, that the private sector is what creates jobs and wealth. The government taking money out of the private sector, thinking they know better what to do with it, is proven idiocy.
Republicans want to get out of the debt-ceiling debate because they now realize they made a gross miscalculation. They know that a default would be blamed on them. They know that over 70% of the American people do not share their opinion about deficit reductions without increasing revenue from wealthy taxpayers. The voters have said over and over that is the fair way to break the logjam. It is not good politics to be blamed for a gigantic train wreck that could have been avoided. That is the REAL answer to the question you raised.
No, it's not just about "politics" and posturing for the 2012 elections. It's about the choice the taxpayers of today and tomorrow have currently: paying for an enormous, inefficient, business-strangling government "footprint" that is 24 to 25% of our economy, or paying for a smaller, more efficient and less costly government "footprint" that does the tasks necessary without being a significant financial burden on the backs of generations of taxpayers. Presently, we are "doing" our government, stupidly – the costs are simply out of control and the taxpayers are "footing the bill" for a government that keeps getting larger and keeps running up the charges on a tab that we cannot afford.
Lawyers are not business people, Did you ever see a lawyer or Law Ferm go bankrupt, I hane't and I am 73 years old. All they know is if they get a little behind on their bills they tell billing people to up the price, they don't know how to plan for the future or how to deal with financial proplems, their stratigy is if you run out money, charge more and that is exactly what they are doing to our government. Let's get some business people in office that know how to handle money wisely. A person with common sence realizes if the money is not their you have to cut back on spending. When you look at the spending chart their is more money going out then what is coming in. The president that enacted this free trade agrement was looking out for his own pocket and not of the middle class & lower class of people. If we want to correct our problem lets get our 10 million + americans back to work, get our jobs back to this country. Of all the people that are unemployed if they were back to work how much revenue could be brought in for Federal Tax, State Tax, & Local Taxes. Every State, City, Townships are in financial difficulity. Let us the people buckle down and start electing people that we can trust. Lets put people in office that now how to manage & handle money like they would run their own business. People in other countries I think, we are the laughing stock of the rest of the World. I am a business man, I can not operate my business like our present Politicians & Lawyers, the list goes on & on. Thank You I am a conserned US American ON NATION UNDER GOD
I already typed a comment I forgot to sign up
This is the second try, and if you don't post it cancel my subscription. Does the truth hurt?
It is nauseating to read all of these comments from obviously intelligent people that do not have a clue about what is really going on in the world, and especially America. You men have been jerked around all of your life with this two party crap, and still believe it could work, IF ONLY THIS OR THAT POLITICIAN OR PARTY WOULD OBEY THE CONSTITUTION. Let me help you off this merry go round fellas. There ain’t any constitution to follow. America has been under the war powers act before most of you were born, and the constitution is toast. We are being ruled by the international bankers, and have been since 1913. If you would do some real research, you would know the two party system is a straw man government designed to keep you picking your nose, instead of learning enough to rebel. And a full out rebellion is the only way things will get better. It is time for another declaration of Independence, and sacrificing of lives for the preservation of freedom. With what we have learned since the bankers took over a New Constitution could be written that is bullet proof. We know now that unfettered capitalism will destroy any honest government, and a new system of intelligent regulation could and would stimulate private enterprise and put every able bodied person to work. We also know that the corporate U.S. Government is not broke by a long shot. See Walter Burien’s site C.A.F.R. com. Start reading the daily Bell.com.
I juyst spent an hour writing, sent it, nothing shows up (except this kept my name and e-mail and a blank message. You guys should allow us to keep a copy of what we write and let us know that the comment was received (or not).
There are many, many individual investors and Countries throughout the World involved in a certain venture including the United States as a government and many of our politicians. And, many of us try to analyze why this investment has not paid yet. Well, there are different schools of thought about that BUT no one wants to step up and ask our higher paid and high positioned politicians. First, it's impossible to "get through" to anyone in the White House willing to discuss this question and second, it's not easy to find a politician willing to admit they are wise to this investment even though most are involved.
It has been said that the United States Government has several Trillion, with a T, U.S. dollars invested.
Now, here is one BIG problem. Our President, Mr. Obama, needs to sign an agreement and this investment will pay handsomely solving financial problems to many individuals and countries throughout the World. Including the U.S. Money problem. We, the United States of America, could wipe out our debt completely and start over. All this political B.S. energy could be spent on other important subjects like bringing home our service men and women and unemployment and we all know the list goes on and on.
We, most of the investors involved, believe that our President intends to delay signing this agreement till such a time that coincides with his re-election campaign. If our Mr. President really wanted to help his country and the World he could help NOW by signing NOW instead of waiting till closer to election time so he could take credit for signing at that time. Take credit NOW Mr. President. Who knows what condition we, the World, will be in then. It may be too late then.
This statement will be understood by those involved as I tried to get my point across without spelling out the investment details. I hope someone responds. I, for one, am about to declare Bankruptcy. I'm not joking, I could not be more serious.
God Bless America.
God Bless us,
Thank you,
Thumper