just skimmed the long post above starting "we are not broke", we being the USA.
The USA has a debt which is unsustainable with present tax and spend policies. Politicians in both camps are telling fibs to the American people - the truth is inconvenient. Broadly the are two sorts of possibilities:
1) The USA increases tax, particularly spending taxes including tax on gas, to levels which almost everyone in the USA finds inconceivable, to levels that will hurt a lot. At the same time the USA makes massive cuts, far bigger than most in the Tea Party dream of. The crucial concept is that it has to be BOTH higher taxes and spending cuts. And yes it will kill growth. This is the economists' solution. Of course it is politically impossible.
2) The USA tickles at tax and spending changes to play to the sensibilities of voters. This will force quantitative easing leading to inflation and devaluation of the US$. It will work and may be something that the politicians can fudge so that people don't notice it all that much. However a side effect is that the dollar and the economy will be far more vulnerable to international events, and the USA will be forced into more co-operation with other nations.
I assume that the politicians will not be able to make 1 work, so 2 will be the future.
incorrect.
Do some math.
If Bush had NOT passed his TWO tax reductions for the Rich... There would be NO DEBT CRISIS today... even WITH the two wars.
That would have kept tax rates on the top 2% of earners at the same record LOW they enjoyed during Clinton's presidency. And it would Not have raised taxes on the middle class and poor.
If Bush had not decided to enter into the two concurrent and useless wars, as well as left tax rates where they were in the 90's, then the US deficit would have been HALF paid off by the end of his presidency.
( even with the dotcom bubble collapse )
If he had engaged in some actual infrastructure spending during the mild recession we had in 2001, which would have built the economy back up on the basis of real work, as opposed to trying to fake a recovery thru deregulated mortgage debt,... Then the US deficit would have been nearly entirely paid off by 2008.
All he had to do was continue Clintons economic and tax policies.
Instead, the GOP cut taxes on job creators... and 8 years of analysis proves unequivocally that it did not create ANY jobs... and that, in fact, real wages fell year on year for all but the top 2% who benefited from GOP tax cuts and GOP war deficit spending ( corporate welfare on borrowed money)
So much for the vaunted GOP 'fiscal responsibility'.
The sad truth is that a relatively minor tax increase on the rich would solve the long term debt issue, if it were in conjunction with massive government spending on infrastructure. Even if that spending is borrowed funds.
Interest rates have never been lower, and everyone want to lend us money at a deal.
If you need a new car... you would be foolish not to buy it when interest rates are at a record low... because it means the car costs you less.
When tax rates on corporations and the wealthy were higher, things were generally better.
Even Ronald Reagan, whose first two years were marked by the highest interest rates in history, and a devastated economy, managed to pull the nation out of recession... BY RAISING TAXES on the rich and corporations.
It worked so well the first time, he did it twice.
This is a crisis caused by fiscal stupidity.
By 25 years of folks in power who imagine the imbecility of Ayn Rand qualifies as an actual economic model.
It doesn't. Even Alan Greenspan, a Rand acolyte of the first water, had to admit, on camera, that his entire world view was wrong. You can not trust the wealthy to self police, or self correct.
Government is necessary, and the US government, in particular, is pretty damn good.
The notion that government is bad is the core kernel of idiocy that was sold to the american people by the GOP.
The truth is... Government needs more money to provide the services and infrastructure that ENABLE free enterprise to compete on a global level.
For the rich and corporations to be sitting on record size piles of cash is proof that they do not NEED more tax breaks. They already enjoy record profits... and they aren't spending it, because the GOP policies have destroyed the income of the middle class.
We cant afford to buy...
Stop giving money to the CEOs of Haliburton and Goldman Sachs...
Start paying it out to blue collar workers to rebuild this nations basic services.
Stop all GOP attacks on Labor unions and other aspects that force corporations to pay workers a living wage.
Mit romney says corporations are people... and that may be true... legally.
But are these corporate people CITIZENS?
Can they be drafted? Serve on Juries?
And why the heck should these corporate people get special treatment on their taxes?
They sure as hell do not care about the US... there is money to be made in China, so they are firing US workers to focus on making money there.
Its great to go to China and be able to find a familiar cup of starbucks coffee...
If you are one of the few who can afford to fly to China, and can afford a cup of Starbucks coffee.