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cloudboy -> RE: United States Debt... or the Elephant in the Room (10/11/2013 7:24:30 AM)
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(1) I'm not a huge fan of Reaganomics either.
(2) You have to look at the larger issues in the economy
(2a) The last 30 years have decimated the middle class. Globalization, the decline of unions, and the lack of US investment in education, training, transportation, healthcare, and infrastructure have contributed to sky-rocketing costs of education, healthcare, and housing. While costs have sky-rocketed, the income levels of the middle class have either been stagnant or declining.
(2b) Without a vibrant middle class there is a continuing demand problem in the USA contributing to a vicious cycle: lack of demand begets a lack of sales for businesses who cut back on salaries and jobs which then begets a lack of tax revenue that begets cuts in government investments (2a) that help put the middle class back on its feet.
(2c) Americans frustrated by their lack of upward mobility, job security, and ability to live a decent middle class life become angry, embittered, etc. and you see a rise of political polarization.
(3) It is hard to see how an austerity plan would either raise taxes or help the beleaguered middle class.
(4) Income inequality in the USA is the most disparate of any advanced country in the world.
(5) The elephant in the room is (2b) and (4) -- and until we raise taxes and invest more in the middle class -- we will continue to have economic problems, political polarization, and tax revenue problems.
(6) The super wealthy in the USA don't activate a demand for goods and services and they don't "create jobs" in the USA. The super wealthy merely put their surplus wealth into the global, investment sector --- thereby contributing to bubbles, speculation, and investment chicanery.
(7) Republicans are threatening to increase the borrowing costs of the US government and every US citizen and resident through this shutdown gambit of theirs. It's a calamity because cheap borrowing costs are about the only thing propping up the US economy at the moment because (6), (4), and (2c) remain serious systemic problems in our economy.
(8) Deficit reduction can only be achieved by raising taxes and cutting the military and other "super-budgets" of the USA. You can't balance the revenues by cutting taxes and slashing programs like NPR, the NEA, headstart, and food stamps. Such a policy is also a slap in the face for middle class Americans who are working longer hours with less pay.
(9) Cutting health care costs and expanding health care coverage -- if achieved -- would really help the US workforce and economy. US health care costs are the highest of any nation in the world. These costs cripple businesses, tax medicare funds, and bankrupt US families.
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