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Musicmystery -> RE: But the House isn't even going there. (7/24/2011 6:50:37 AM)
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quote:
And that fantasy world is thinking the govt. Will take care of u.....and the govt. Prints the money so no prob.......free Obama money for all! When u take all the evil rich's money, or they leave and open up shop in a more economic friendly country........who going to pay for all this ??
Here's a nice snapshot of the naivety of misconceptions of the Teas.
Points for recognizing the fiscal situation is unsustainable and has to change. Negative points for misunderstanding the workings of that situation. Shame points for making up positions of others and using those straw men as the basis of rants. Indeed, fantasy, even fantasy rage, isn't going to help, because it prevents addressing the real issues. Even this short excerpt reveals these fundamental problems.
*Money isn't simply printed, but is created primarily from fractional banking following the Fed purchase of Treasuries. The trouble now is that money isn't circulating the way it normally would. Banks are holding onto cash following the inability to accurately assess assets following the bundled derivatives debacle and lax lending and bookkeeping practices. Businesses are holding onto cash due to uncertainty while a polarized Congress attacks each other rather than settling on a definite path so that businesses can plan for whatever Congress ultimately decides. Increases in productivity are driving GDP growth, but real new investment is on hold.
*The stimulus money you deride as "Obama money" would have happened under a Republican president anyway--it's a Bush proposal, in fact, and the left is disappointed that Obama is "Bush Lite." Knowing it would be unpopular, the then minorities in Congress could vote nay under cover of knowing it would pass anyway. But these are side issues--the last five Republican administrations have run up the deficit remarkably, and they did it by combining unfunded tax cuts with increased spending, with the Bush neo-cons adding to this continuing structural deficit with long term military engagements in the Middle East, both of them elective and initiated under false premises. Obama deserves his share of blame, but if you think no Obama means the problem is solved, you're squarely in fantasy land. The Fox is guarding the House.
*The fantasy about raiding the rich is largely started by those opposing it, not by anyone promoting it. Going back to the pre-Bush cut levels is a pretty benign step, and one that frankly should happen for all income levels, while keeping the capital gains cuts (which, to be honest, does in fact benefit the rich). Cutting the mortgage deduction is long overdue--it primarily subsidies more costly housing for wealthier buyers, versus making housing affordable to those otherwise unable to purchase a home. And taxes are still a fraction of what they were 30 years ago, especially for the wealthy. No one's saying let's go back. What IS nonsense is the continuing mantra that giving money to the rich creates jobs. It doesn't--we're living that now.
*My entire life people have been complaining that the economic environment is unfavorable, that business will simply leave...and yet, here they are. Why? Because obviously, business will always argue for the best deal it can get, utilities, taxes, wages, and so forth. Except in specifically targeted areas (on the local level) for very specific purposes, however (for example, attractive movie production to a city, things like that--ironically, one popular belief, sports stadiums, are usually money losers, as are casinos when net jobs from crowding out are considered), studies show this approach is a myth. Businesses with very cheap labor needs have always and will continue to manufacture wherever they can, up to where shipping costs override the benefits. Yet they stay. And foreign businesses open here. Why? One, this is a large market, and it pays to produce here. Second, we have an excellent infrastructure, from transport to communications, that doesn't exist in many "cheaper" parts of the world. This contributes to the third factor, productivity. In many industries, even with higher labor wages, vastly greater productivity makes U.S. (and other high wage countries) an ultimately less expensive choice. And finally, we have a highly skilled labor force. It's why we lead the world in computer/software production. We could do better here--we actually have to import more skilled labor from abroad--but still, they are coming here to work, because this is the center.
The rest of your post is the usual "we're apolitical, down with Obama" contradiction. The Teas are as politically right as they come, even if they don't think so. And as such, they march in the shadow of their Republican leaders, parroting those talking points. Cuts. No taxes. Government is the enemy.
Well, more than you realize--look to your own leaders. Spending cuts alone are not going to do this. Even with ALL discretionary spending cut, and ALL defense spending cut--and yes, I know we can't cut it all--that would just barely cover the deficit, just the deficit, doing nothing to address the debt. That's how big a problem 30 years of relying on borrowing while cutting taxes has created. We didn't magically grow our way out, not in any specific recession, but not in 30 years of economic activity. We will have to raise tax revenue along with spending cuts to balance the budget. We simply will have to, or live with ever increasing debt, and that's the one part the Teas get right--we can't continue to live with growing debt.
But their "solution" will merely continue to grow that debt.
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