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Bush Tax Cuts + Wars = A Deficit Problem

  • Posted on April 17, 2011 at 4:03 pm

Two peas in one proverbial pod!

Okay, it’s a simple math problem.  The Republicans would have us all believe that the deficit issue is because of the American people.  That’s right folks, you are the problem.  You are really the problem, if you are a union member and you work for the government.  You are not the problem, if you are a member of Congress or the head of some government entity because your position is so very necessary for the proper functioning of government.  You caught me laughing again!  You are so very “special” if you work for the military.  You don’t have to worry about losing your job because they’ll never cut enough to matter.  However, if you are a lowly Private in the military, it’ll be mostly talk about honor and bravery, less about money and benefits!

Rep. Dennis Kucinich says, “The geniuses on Wall Street decided that a certain amount of unemployment is necessary for the proper functioning of the economy.”  You must ask yourself a question.  Does your job fall under the category Dennis is talking about?  If it does, beware!  You could be next.  So, I’m thinking what does this mean?  It might explain why a friend of my son went in for a job interview thinking he was really competing for a job, when he really wasn’t.  It turns out, they weren’t really hiring at all at that time.  The business was just seeing what’s out there to hire.  Of course that isn’t how the posting was listed.  My son works for the company and was surprised to find out that they weren’t really hiring.  So, why would the economy benefit from a certain amount of unemployment?  Could it be that it makes people hungrier and willing to work for less?  You know less money, less benefits and more hours for less.  Who benefits under this scenario?  Certainly not the American worker!  Here is Dennis talking about the deficit and President Obama.

Dennis is right.  If we get more jobs going out there, there will be a bigger tax base.  Why have the politicians decided to focus on “contracting” government instead of focusing on job creation.  James Carville had that catch phrase, “It’s the economy stupid!”  Someone needs to be whispering these words into President Obama’s ears every day because for some reason, he hasn’t figured this out either.  Instead of going to the Republican playbook of tax cuts for the wealthy and reducing spending to cut the deficit, President Obama should be focusing on JOBS!

The other night I caught a bit of a program on the History channel about our collapsing infrastructure.  Here is just a taste of that program.  It’s a nightmare.  However, it’s not the Freddie Kruger kind where you watch it at the movies and know it’s not real.  This is a real nightmare that could have a profound effect on our lives.

We all remember the bridge in Minnesota.  Most of us know that the roads, bridges, sewer systems and many other structures in our states are failing.  So when our infrastructure truly is at risk, what are the politicians doing?  They are like Henny Penny screaming, “The sky is falling!”  Of course, the sky they are talking about relates to the deficit and the hole we have dug ourselves into.  They weren’t singing that tune back in December when they ushered in two more years of the Bush tax cuts and decreasing the amount we pay into social security by 2%.  This is corruption at its core.  There is a systematic effort here to destroy wages and benefits for the American workers while continuing to prop up business, banks and the super wealthy.  If the politicians and their cohorts can do enough damage to the American workers wages and benefits, we might have enough unemployed that will be willing work for peanuts.  Now, you might be wondering why this is important.  I’m thinking that the cost of fuel is far too high to ship things.  It only makes sense to produce things locally to save energy costs.  However, the wages have to be low enough so that business can make the type of profits they really want.  Those profits have to be big enough to be able to give out the big bonuses to the big bosses.

Now let’s get back to that equation, “Bush Tax Cuts + Wars = A Deficit Problem.”  War is very profitable.  One of the things that the politicians are really pushing for is PRIVATIZATION.  They want to privatize everything from health care to education.  They have already taken over our military.  This is happening throughout our government.  Tonight my sister asked me if I knew that while we have 50,000 troops in Iraq, did I know there are another 77,000 working with private companies.  Of course these aren’t military.  They are probably ex-military working for “for profit” companies that have been hired by the Department of Defense.  Of course, the American tax payer is still footing the bill.  Don’t be thinking we will be getting out of any of these wars too soon.  They are far too profitable for private businesses that are invested in them.

So, where are President Obama and the Democrats in all of this?  Our fearless leader is spending his time dangling carrot sticks at us at moments when he thinks we might be vulnerable.  He was “unaware” that his mike was on and he was being recorded recently.  He sure gave it to those Republicans in that private conversation, or so we have been led to believe.  As we get closer to the election of 2012, he will probably look more like he’s actually in charge.  So far in my book, he has looked like a wimp.  This is all window dressing for the next election.  My brother says he will win the election.  I don’t know if he will or he won’t.  However, I think it’s interesting that the Republicans and Democrats publicly sound so different, but when they get behind closed doors they both do everything they can to dismantle social programs, subsidize the rich with deep tax cuts and ignore the plight of the poor and they do it all on the backs of the middle class, or what’s left of the middle class.  Is the problem in our country really all about the deficit?  If it truly is about the deficit then what on earth were these two parties doing in December when they set us up with two more years of the Bush tax cut?

Here is another good piece from the Real News Network.  It’s an interview with William Black and you should watch it through the end.

Think back to what Dennis said about this being a transfer of wealth.  This is not about transferring wealth, like robbing the rich to give to the poor as in Robin Hood.  It’s all about taking from the majority and giving to the wealthy.  The government is giving tax breaks and tax cuts to the wealthy and they are also privatizing much in government and giving those no bid contracts to their buddies!  There is a constant drumbeat that we have to get on board whatever those “brains” in Washington think we must do to fix the economy.  Just remember those “brains” are listening to the geniuses on Wall Street!  Remember  William Black said, “Deficit hysteria has nothing to do with anything.”

How High is the Price of Freedom?

  • Posted on April 12, 2011 at 10:19 pm

I was over at Modern Schooland clicked on one of his links to theNYC Educator blog.  Holy smokes but that blog had a video with Ronald Reagan supporting unions….in Poland!  I had to laugh.  This isn’t the Ronald Reagan that killed the air traffic controllers’ union, is it?  All of the Repubs like to talk about dear Ronnie, but they never mention this Ronnie.

And here is more…

http://www.youtube.com/watch?v=yecslGvFVv8&feature=related

“Freedom is never more than one generation away from extinction.”  Those words were spoken by none other than Ronald Reagan.  If governors like Walker, Snyder and the other Repubs love Reagan so much, why don’t they follow his advice and protect unions?

I like this video here on labor in the United States.  This interview is with Elaine Bernard, the head of the trade union program at Harvard Law school.

Moving on over to the SkyDancing blog I came across another video post from Real News. Something is up and it’s not to help the American worker.  This professor says the objective is to move the tax burden to labor.  He talks about parasites and hosts.  Watch this video and think about that war I wrote about on the American people.  When the parasites are done destroying our country, don’t worry, they’ll just move on to another country!

2011 What Goes Up, Must Come Down Eventually

  • Posted on January 4, 2011 at 7:40 pm

President "Republican Lite" Obama Making Nice With Senator Boehner and Representative Canter, Republican Hatchet Men

You may still be on that holiday high, hung over from the good eats and drinks.  However, it’s time to sober everyone up with the reality that is coming.  You may be feeling pretty fine right now because your tax cut was saved.  Oh, well, you gave in on that tax cut deal for the wealthy thing because well, you got yours!  Of course we all know that the status quo is unsustainable for Republicans, unless they’re talking about tax cuts for the wealthy.  So, you might be wondering what I could possibly be worried about.  The answer is, plenty!  As the tax cuts may be giving many people a bit of sugar high right now, those same people will soon be feeling that sugar candy low you get when that sugar rush is gone!

First of all you need to understand that the Republicans feel they can make the most gains by making life as difficult as possible for the Democrats.  The Republicans are putting forth a new rule that will make it harder to raise the debt ceiling, something they didn’t mind doing under the Bush administration as I recall.  http://thehill.com/homenews/house/134799-new-gop-rules-will-make-it-tougher-for-house-to-raise-debt-ceiling

Furthermore, now that the Republicans got that big tax cut they wanted they are ready to take a hammer to everything else because after all, we are broke.  Just listen to Senator Boehner talking about our country being broke and then turning around and pushing for the massive tax cut for the WEALTHY! What a trooper!

That means there is only one way to go and that’s with cuts and I don’t mean tax cuts.  We know they are not going to “raise” taxes as they have pushed through the continuation of the Bush tax cuts, even for the wealthy.  So just what is discretionary spending any way?  Part of the discretionary spending is the defense but we all know that it will not be cut and in fact is going to see a budgetary increase in 2011.  That leaves all of the other types of special programs like education and of course that pesky money that goes back to individual states.  The states are already hurting and they are probably going to hurt even more!  You can read about the discretionary spending in the articles I site and also in the letter sent to the President by the Republicans in 2009. With extending the Bush tax cuts both parties have intentionally painted themselves into a corner.  They are going to have to find a way to get out of the room without messing up the paint.  It’s not going to happen because once again both parties are going to lay all the ugliness at the feet of the American people.  Instead of having the wealthy top two percent step up and do more to help this country, we can all expect that the middle class and the poor will once again absorb these burdens.

In 2009 the head Republicans, Senator John Boehner and Representative Eric Cantor sent President Obama a letter.  In it they outlined the cuts they wanted to make to reduce the deficit.  These Republicans look at any change to the Bush tax cuts as being a tax increase unless of course it betters the wealthy.  We all know that they upped the death tax to favor the very rich!  Even though the Bush tax cuts were set to expire and the country would go back to the previous tax code, it is now looked at as being a substantial increase in taxes if they were allowed to expire.  It’s really fascinating when you start getting into the mindset of how the Republicans really think about these issues.  Much of what they want to do is to push everything back to the states.  Of course this has been going on for years already and many states are in a heap of trouble but if you read things through carefully, it is exactly what these guys want to do.  They want to eliminate many programs.  I think this 2009 letter is a big hint as to what the political fights will be coming down the road in 2011.  Remember the budget is only good until March 4th.  So, what can we expect?  http://republicanleader.house.gov/UploadedFiles/06-04-09_Savings_Proposals_For_President.pdf

This is something everyone should read as it is a real eye opener.  There are many programs in education they want to cut or eliminate completely, even my own “art education” gets the whack!  So much of what they want to do they deem in their infinite wisdom as not a “federal” role.

In regards to the issue of Social Security I think this is interesting.  This is directly from About.com.  http://useconomy.about.com/od/fiscalpolicy/p/Mandatory.htm

The first Baby-Boomer turned 62 in 2008, becoming eligible to retire on Social Security benefits. By 2025, those aged 65+ will comprise 20% of the population. As Boomers leave the work-force and apply for benefits, three things happen:

  1. The percentage of the labor force under 55 stagnates, providing less payroll taxes to fund Social Security.
  2. GDP growth declines remains flat thanks to fewer workers.
  3. By 2040, the Social Security Trust Fund goes bankrupt.

Choices for FY 2012 and Beyond:

As a result, the U.S. Federal Budget in 2012 and beyond will have to choose among the lesser of three evils, none of which are good for the economy:

  1. Devote more of the budget to pay Social Security benefits. However, to maintain current benefits, the federal budget will have to increase to 25% of GDP by 2045.
  2. To fund this increased budget, taxes would have to increase, further slowing the economy.
  3. Decrease the benefit amount paid to retirees. This is the most likely scenario. This would force able-bodied Boomers to continue working. Those who couldn’t work would provide a further drain on the economy.

What I find as the interesting part is the fact that both parties are aware of this and they still decided to reduce the payroll taxes recently.  It makes me wonder if they want to cause a catastrophic failure so they can say, “I told you so.”  I guess the idea is we pay 2% less into Social Security and that will leave us more money to spend on junk to stimulate the economy.  What kills me is what I just read over at About.com.  About claims we will have to choose amongst the lesser of three evils, so why did we make it worse by partially defunding Social Security?  Maybe greater minds than mind can answer that question.  Of course my suspicious mind makes me think that we are being set up for failure so that once again we will accept less. We will accept less in benefits when we retire and we will work longer to get to retirement.  Life is over as most of us have figured for our retirements.  The state of Michigan already is taxing me higher by making me pay more into my retirement without any additional benefit.  I’m sure the Federal government is getting ready to do the same.

There is an agenda out their folks.  It seems like all the things that were created under FDR, which were sacred cows at one time, are now going to be fodder for the Republicans and our Republican “lite” President to dismantle.  Politicians that might have fought this have been systematically taken out.  Two come to my mind that won’t be back after the New Year, Representative Alan Grayson and Senator Russ Feingold.  I mean if Democrats had to go, why couldn’t it have been more of those Blue Dogs?

http://useconomy.about.com/od/fiscalpolicy/p/Budget_Spending.htm