Re: 2011 U.S. Budget Cut in Perspective
Ok... I made a flippant remark about the Wall Street Bankers getting their bailout (which I was for) and bonuses (which I was NOT for)... but, that was a valid point in regards to this U.S. Budget deficit. They got money and the American people paid for it. While the Banks got bailed...other closely related sectors of our economy did not....Housing, Insurance (they only raised their rates to off-set their losses)etc...
Not to quibble that is not quite the entire story.
Yes, after Lehman was allowed to fail, the quickly spreading international fear and uncertainty suggested a bail out was in everybody's interest. It is arguable that more pain could have been prevented by a cheaper bailout of Lehman, while one could alternately argue the merit of letting more of them fail.
I'm surprised that I need to remind you that the auto industry received a bunch of taxpayer love.
The attempts to "help" the people who purchased home(s) they couldn't afford to ever pay for (on a gamble they would keep going up), has only prevented that market from clearing, bottoming , and recovering. Unfortunately all the "help" will only prevent a small fraction of those who gambled unwisely on housing, from reality. One good friend of mine despite my repeated warnings, ended up losing his several years of real estate gains in a final short sale. "Trust me I know what I'm doing". If i was less of a friend I would rub that in.
In regards to my statement asking what the other Countries might do....It's a valid question. Are they going to continue to trade with us? Are these foreign investors that hold so much of our security, going to start selling their American Stocks, Bonds, and US treasury Bonds and Certificates? Are the Countries that are currently on the verge of bankruptcy going to be bailed out...are WE going to bail them out, absorbing their debt?
If look behind the curtain at the wall street bailout, and lot of taxpayer money went to european banks and financial institutions, so we've been in the same bed for a long time.
This is not unlike the 30's when everybody tries to beggar thy neighbor by making their currency cheaper to gain world trade. Part of this weeks fun news from Europe who had already started increasing interest rates (that "should" make their currency relatively stronger) just pulled an about face and reversed some increases. The Euro zone has a simpler one target inflation mandate for monetary policy (vs our inflation and employment0. However they are learning the perils of a single monetary policy with independent per country budget/debt discipline.
The real concern is will foreigners stop buying american debt and at the moment China would love too, but we're the least ugly girl at the prom so while they try to diversify we are still high on their dance card.
Trade is touchy subject, the congress still hasn't certified trade deals with Columbia, So, Korea, and (?) that were negotiated under the last administration. trade deals, mean more US jobs, but apparently this hasn't been much of a priority.
JR's response includes the Elephant in the room that no one still wants to acknowledge.... these damn Wars and "police actions". How much of our debt is from this cost alone?
I did estimate roughly $1T to post 9/11 adventures, while the total military budget is more and there is much not immediately military spending, like aid to Pakistan that was "strategic" for the region.
I already argued that all of the military spending needs to be in the budget, but even turning more neutral that Switzerland would not balance our budget.
Combined with our loss of income taxes from outsourcing American jobs?
This is another oversimplification. No country maintains their personal standard of living by ignoring productivity enhancements and best use of capital. If we prevent companies like Boeing from expanding into more business friendly states, they will expand into more business friendly countries. We truly need to unleash the growth engine that was American small business. The current climate is doing the opposite.
Ironically there was just a news release about Hon Hai (remember them? the huge CM in China that builds Apple and Sony poop). They report that they are going to buy 1 million robots... to reduce manufacturing cost. hmmmm
....with the cost of the 110+ new Federal Agencies enacted in the last 10 years?
New agencies are just the tip of the iceberg showing above water. The larger damage is from their friction and damping effect on business activity and economic growth.
We need to make the existing agencies work better. I believe the oversight of trading on wall street is still a little too friendly to computer flash traders and hedge funds, not friendly enough to small investors, who are bled dry by a thousand cuts.
With Illegal Aliens and Legal Aliens sending home 100's of Billions of Dollars, which would normally be spent in this Country?
This is another one of those problems we could solve in an afternoon if we really wanted to. there are partisan interests on both sides of this preventing a honest resolution. I am more concerned about mexico turning into a narco state. and we are more than a little complicit (as a customer) for the drugs, and as supplier of the fire power used by the cartels.
With the International trade laws favoring everyone else but Americans?
This is nothing new, and we have prospered (so far) despite this... a good start is approving Columbian and S. Korea FT agreements.
Big American Corporations not paying any Tax...GAO (Government Accounting Office) study from 1996 to 2000 found that 61% of US based Corporations paid NO income Tax.
With Larger Corporations with assets of at least $250 Million or gross receipts of at least $50 Million....71% did not pay any Tax.
Some well parsed stats, (lies, damn lies, and statistics). I see your rant and reply, hell yes big companies need to pay more taxes. i will accept your numbers for this discussion. The reality is nominal US corporate tax rates are still too high, so what we need to do is start eliminating all the many loopholes used by the large and powerful that have outlived their benefit to the economy, so we can reduce nominal tax rates while getting even more revenue. As it sits right now, small business is getting hosed again because they actually pay the high tax rates. Big business is not evil, they are just better capable of working the system. Fix the damn system that makes it so easy for them to game the taxes. All this green job nonsense is creating new different recipients of government (taxpayer) love.
It's all going out, but, nothings coming in. What did anyone expect to happen?
world peace?
What do you consider a reasonable discussion?
This is a good start...
