A Debt Ceiling Vote Paid for on a Backs of Working Families

I’m not happy with the compromise struck between the President, the Senate and the House on the drastic spending cuts in exchange for raising the debt ceiling.  Make no mistake, the spending cuts will hurt the poorest and middle class the most, leaving tax loopholes alone for those most able to afford losing them.  It’s 1937 all over again folks, when President Roosevelt cut government spending in the midst of a recovering and fragile Great Depression economy that sent things back into a two year recession.

The difference between now and then; Republicans own this one.  If Medicare gets cut, Social Security doesn’t keep pace with the cost of living and college education costs more, it’s all due to the hard work of the GOP. 

And shame on the Democrats in Congress and the President. 

Compromise doesn’t mean capitulation. 

And if Republicans wouldn’t compromise now, why should they in two years when we go through this all over again.

If this is a poker game, the President may have laid a careful trap for Republicans.  The spending cuts they succeeded in getting will not help the economy, they will not create jobs, they will not reduce the deficit.  It’s going to get worse. And when if does, the President can rightly point the finger and blame them for the state of the economy. 

But its a sad day in America when one party is willing to destroy the economy for the sake of political gain. Especially when it was the policy of that Party from 2001 to 2007 that rack up more than two-thirds of the debt we now face and brought this nation and the world to the brink of economic disaster.

I’m not the only one that feels this way.  NY Times columnist and Princeton University economics professor Paul Krugman writes this in today’s NY Times:

“For the deal itself, given the available information, is a disaster, and not just for President Obama and his party. It will damage an already depressed economy; it will probably make America’s long-run deficit problem worse, not better; and most important, by demonstrating that raw extortion works and carries no political cost, it will take America a long way down the road to banana-republic status.

Start with the economics. We currently have a deeply depressed economy. We will almost certainly continue to have a depressed economy all through next year. And we will probably have a depressed economy through 2013 as well, if not beyond.

The worst thing you can do in these circumstances is slash government spending, since that will depress the economy even further. Pay no attention to those who invoke the confidence fairy, claiming that tough action on the budget will reassure businesses and consumers, leading them to spend more. It doesn’t work that way, a fact confirmed by many studies of the historical record.

Indeed, slashing spending while the economy is depressed won’t even help the budget situation much, and might well make it worse. On one side, interest rates on federal borrowing are currently very low, so spending cuts now will do little to reduce future interest costs. On the other side, making the economy weaker now will also hurt its long-run prospects, which will in turn reduce future revenue. So those demanding spending cuts now are like medieval doctors who treated the sick by bleeding them, and thereby made them even sicker.

 

  13 comments for “A Debt Ceiling Vote Paid for on a Backs of Working Families

  1. August 1, 2011 at 9:58 pm

    The American people have but two choices.

    Choice #1:
    Live with the ‘Obama Debt Ceiling Coup Act’.
    1. An initial $1 trillion cut.
    2. The Obama named “Supercongress” 6 Democrats & 6 Republicans will recommend an additional $1.5 trillion in cuts by November 23rd, 2011.
    3. The $1.5 trillion in cuts will be a straight up or down vote, no amendments or filibustering.
    4. If congress votes “NO” on the additional $1.5 trillion in cuts, so what, the cuts happen anyway and are evenly distributed between defense and entitlement programs. (I also heard a percentage cut across the board).

    It’s a coup because Obama gained dictatorial powers while making Congress largely irrelevant.
    http://www.larouchepac.com/files/20110801-obama-coup_0.pdf

    Stop Obama’s Hitler Coup 3:49 http://www.larouchepac.com

    World in Review * August 1st 2011 (12 minute video)

    Choice #2:
    Visit your congress-member’s district office and demand he/she cosponsor HR 1489 (Glass-Steagall). Contact info at http://www.politics1.com

    There are now 32 cosponsors http://thomas.loc.gov >> “Bill Number” >> HR 1489.

    Glass-Steagall Is Only the Beginning 5:43
    http://www.larouchepac.com/node/18833

  2. henry lipton
    August 1, 2011 at 11:01 pm

    How come you guys havent reported on the Kelly Thomas murder?

    • August 2, 2011 at 7:10 am

      Henry,

      The Kelly Thomas story is being covered quite well by other publications. We linked to coverage yesterday in our Morning News round up. This is a travesty of justice and as it develops further from a political perspective I suspect we will cover it some more.

  3. August 2, 2011 at 7:28 am

    Henry – the case in Fullerton has nothing to do with the post on the debt deal. No thread hijacking please

  4. cook
    August 2, 2011 at 12:23 pm

    Where are the cuts?

    Oh ya, that is right, the majority of congress has been cut out of the process and we now have the committee of 13 who will run the new fascist government.

    I don’t think that congress can pass a bill with the president signing it to suspend the US Constitution and void whole sections, at least not without the ratification of ¾ of the states ok’ing the change from a democratic republic.

    • Steve
      August 3, 2011 at 10:19 am

      Almost all legislation starts in a House or Senate committee. There’s absolutely nothing unconstitutional about this debt committee. Whatever they develop still HAS to be voted on by the full Congress…that is literally part of the debt ceiling compromise, that the Committee’s recommendations be voted on by Congress.

      • cook
        August 4, 2011 at 5:57 pm

        Tha market has spoken, 500 point drop today, maybe 1500 tomorrow, and suspension of the market on Monday coming. Better stock up on food and water, just in case. (and of course a way to protect your supplies)

  5. henry lipton
    August 2, 2011 at 1:12 pm

    Sorry,
    i meant to post this on the news roundup thing. I hit the wrong tab. But Ive been wondering when you guys were gonna cover it. I would think it would be a pretty meaty issue for your blog. Again, apologies for the post on the wrong thread.

  6. Steve
    August 2, 2011 at 5:48 pm

    The Rethugs are already talking about their “Supercongress” appointees being strictly opposed to tax increases. All I can say is I better not see the spineless Democrats appoint a bunch of centrists.

  7. Steve
    August 5, 2011 at 1:17 pm

    Dow up 60 points on Friday.

    Could you have been more wrong?

  8. MikeM128
    August 11, 2011 at 5:09 pm

    Let the Democrats decide what to do. They have done an excellent job at showing how to lead. Look how well California is doing………..

    OOPS!

    We need to cut 10 Trillion out of the deficit over 10 years just to get to even. Neither party will do the right thing.

    Currently we borrow 40% of every dollar spent, what will they say about the old people and the children once we have Revenue = Debt payment.

    Interesting that it is always the old people and the children. Why not slash some jobs in DC. Amazing the the only place in America without high unemployment is Washington DC.

    Unfortunately corruption will rule the day like always. Maybe it’s time to let the Libertarians take a shot at this.

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