Tag Archives: debt

The free market at work

We all value higher education in this country, and rightly so. But tuition and cost of living have been raising year after year, while student assistance, especially cheaper public sector aid, has been on the decline. With a weak economy, … Continue reading

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Every Economist Calls For More Stimulus Spending

Bush Jr. CEA Chief Economist Andrew Samwick highlights a Robert Shiller column calling for infrastructure spending, and adds: Shiller goes on to argue for the balanced-budget aspect of infrastructure improvements in the President’s American Jobs Act proposal.  I would take that, as … Continue reading

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Misleading Right-Wing Arguments On The Long-Term Debt Problem

The Heritage Foundation kinda-sorta praises Rick Perry for calling Social Security a Ponzi scheme over and over again at the last presidential debate (Perry was lying, of course), pointing to this chart: This is quite misleading. First off, Social Security … Continue reading

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Hoping For A Better Day To Hear

In a post that highlights the same lack of demand that we stressed a few days ago, Joe Weisenthal digs into a new paper by Stephen G. Cecchetti, M. S. Mohanty and Fabrizio Zampolli that’s being used to stoke fears of a … Continue reading

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Deficit Reduction In The Current Context

We shouldn’t be doing it. We can borrow money for about free, and we have an unemployment crisis, vs. a long-term debt problem. But if we are dumb enough to focus on deficit reduction… we should return high-income rates to … Continue reading

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I Got This [Paul Ryan] Thorn In My Side

We noted earlier today that Congressional Republicans oppose an extension of the payroll tax cut. I don’t know whose job it was to explain to them that taxes affect revenue, which affects the deficit, but hats off to that guy. (Of … Continue reading

Posted in Politics, Taxes | Tagged , , , , | 6 Comments

Regulatory Uncertainty In China

In China, this sort of thing can happen at a moment’s notice: Around 2000 people have been arrested, and nearly 5000 businesses shut down, as Chinese authorities try to force their food industry to improve its safety standards. … The … Continue reading

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Republicans Don’t Give A [Hoot]

Some people are crowing about poll results showing that few people want to extend the Bush tax cuts, or that most people (including most Republicans) want to increase marginal income tax rates on the very highest income earners. It’s important, first … Continue reading

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Blind Men & An Elephant The Economy

So S&P downgraded US Treasuries the other day. As a result, money poured into US Treasuries, driving their yields from absurdly low levels to almost unthinkably low levels (under 2.5% on 10-years, at 0.25% on two-years. Oh no, we must … Continue reading

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There’s A Bright Future For All You Professional Liars

Convergence on the left and right! David Frum points out: “Markets are saying: We fear recession and deflation. Washington consensus: now is the time to fight debt and inflation.” And: “As of right now, the US govt can borrow money … Continue reading

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Polls And Reality On The Causes Of The Debt

Here’s how we got here, on the debt: And here’s where Pew says Americans think it comes from: Surprised to see how few people realize that the Bush tax cuts are the leading cause of the current debt level.

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Collateral Damage In The Debt Ceiling Hostage Standoff

So S&P said something kinda mean about our ability to pay our bills over the weekend. The key quote from the report: Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, … Continue reading

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The Long-Term Debt Issue Is Health Care Costs

As we’ve discussed before around here, the long-term debt issue is health care costs. Via Matt Yglesias, this chart from Yuval Levin: Below the jump, some more context on this issue, drawing on the previous post.

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Deficits Are A Consequence Of Spending And Revenue

This chart from Jonathan Hopkin shows little correlation between spending levels and deficits: Now, I wouldn’t draw any grand conclusions from the experience of 2007-2010 because it was rather unusual. Still, interesting, especially given that the US is a low-spending, low-tax … Continue reading

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Kind Of A Drag

From the professionals at Macroeconomic Advisers, the impact of the the debt ceiling deal on the economy: If the deal is enacted as planned — $917 billion of initial cuts followed by $1.5 trillion of additional cuts to be recommended … Continue reading

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The Republican Party Created The Deficit And The Debt

Just to have some stuff all in one place, here’s some information about how we created our long-term debt problem. This one has the score at Bush $5.07 trillion to Obama $1.44 trillion: This one puts Bush at $7 trillion … Continue reading

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Who Matters

So as we’ve been lamenting around here, the end result of the debt ceiling hostage negotiation is “DC To Unemployed: Drop Dead.” That’s too bad, because we haven’t seen a sustained unemployment crisis like this since the Great Depression. The government … Continue reading

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The Other Intra-Party Dispute: Republicans Divided On Whether Republicans Are More Like Soviet Dictators, Al Qaeda Terrorists, Or Charlie Sheen

Reagan adviser Bruce Bartlett compares the Republican Party to the Soviet leadership: I think if Obama had the sort of experience that Cold War presidents had in dealing with the Soviet Union or that corporate executives and union leaders had in negotiating … Continue reading

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