Posts tagged ‘deficit’

Where Did the Debt Come From?

by , posted on Wednesday, October 24th, 2012 at 6:00 pm

from the Center for American Progress

We hear a lot about our debt. And it is a pressing issue. But where did it come from? Michael Linden, the Center for American Progress’s Director of Tax and Budget Policy, looks at what happened in the 10-years since the Congressional Budget Office projected a massive surplus.

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Does Obama Economic Policy “Just Need More Time”?

by , posted on Sunday, September 16th, 2012 at 2:08 pm

from The Real News Network

Gerald Epstein (Political Economy Research Institute, and Department of Economics, University of Massachusetts, Amherst): The basic policies must change or recession and high unemployment will continue

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President Obama’s Big Deal: Cuts for Social Security, but No Taxes for Wall Street

by , posted on Wednesday, July 20th, 2011 at 2:45 pm

Cross-posted from Truthout, where it was originally published on July 18, 2011.

The ability of Washington to turn everything on its head has no limits. We are in the midst of the worst economic downturn since the Great Depression. Even though the recession officially ended two years ago, there are still more than 25 million people who are unemployed, can only find part-time work or who have given up looking for work altogether. This is an outrage and a tragedy. These people’s lives are being ruined due to the mismanagement of the economy.

And we know the cause of this mismanagement. The folks who get paid to manage and regulate the economy were unable to see an $8 trillion housing bubble. They weren’t bothered by the doubling of house prices in many areas, nor the dodgy mortgages that were sold to finance these purchases. Somehow, people like former Federal Reserve Board Chairman Alan Greenspan and his sidekick and successor Ben Bernanke thought everything was fine as the Wall Street financers made billions selling junk mortgage and derivative instruments around the world.

When the bubble burst, one of the consequences was an increased budget deficit. This is kind of like two plus two equals four. The collapsing bubble tanked the economy. Tax revenue plummets and we spend more on programs like unemployment insurance and foods stamps. We did also have some tax cuts and stimulus spending to boost the economy. The result is a larger budget deficit.

All of this is about as clear as it can possibly be. The large deficit came about because the housing bubble, which was fueled by Wall Street excesses, crashed the economy. Yet, we are constantly being told by politicians from President Obama to Tea Party Republicans that we have a problem of out-of-control spending.

The claim of out-of-control spending is simply not true. It is an invention, a fabrication, a falsehood with no basis in reality that politicians are pushing to advance their agenda. And that agenda is not pretty.
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Loyal to a Fault

by , posted on Monday, July 18th, 2011 at 7:35 am

Like a lot of progressives, I’ve been troubled by the President’s response to the debt ceiling crisis which Republicans in Congress have been engineering lately. I’m not a deficit hawk. I believe we need more social investment, not less. So, as far as I’m concerned, both sides of this negotiation are on the wrong side of the debate.

And it’s not just that allowing the debate to narrow in this manner leads us to bad policy choices. It’s also bad politics.

Having the nominal leader of the Democratic Party himself opening the door to the possibility of Medicare cuts, even if it’s just some sort of negotiating ploy, undercuts the efficacy of a key campaign message that Democrats need to be able to run on in 2012: opposition to the desire of Paul Ryan and the Republicans to cut Medicare.

So, when the Progressive Change Campaign Committee began circulating a petition that it hoped would stiffen Obama’s spine in these negotiations, I signed on. And I posted a link to it on my Facebook wall as well, hoping that others of a like mind would sign the pledge, too.

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