There’s a lot of talk and squawk going on about what’s wrong with the infamous debt ceiling “deal” that has left everyone, um, less than satisfied. I particularly like the analysis by journalist Matt Taibbi, the Rolling Stone reporter who has dug deeper into the causes for the nation’s economic mess than nearly any other U.S. media scribe. Read his latest blog post about the deal, which I found to be sadly on-the-money. What has this writer worried today, however, isn’t the post-deal talking, but the words that led to some seriously mistaken assumptions that were the foundation of the way spending was cut. Put more simply, it’s a gross error, not to say stupid, dishonest and destructive, to claim that America’s paltry social safety net is a big part of the debt problem that simply must be cut.
There are three huge reasons for the increase in public debt during the past decade: the Bush tax cuts, the Great Recession, and the wars in Iraq and Afghanistan. See the chart at the end of this post to see just how much of the debt is caused by those three things. It would be logical, therefore — in other words, it probably won’t happen — to repeal the Bush tax cuts, which at this point are set to expire at the end of 2012; and to get our troops the hell out of the sandy hellholes they’re in now. Frankly, while we’re at it, I’d like to see us start dismantling some of the hundreds of military bases we keep around the world to contain an enemy that collapsed over 20 years ago, but good luck ever seeing that happen before our empire crumbles. Ending the wars in Iraq and Afghanistan would at least mean that the U.S. economy wouldn’t continue bleeding three billion bucks per week, and would but a big dent in the public debt.
This article appears in Aug 2-8, 2011.
Will the truth ever be advertised – here it is. Ron Paul has been saying this for a long time. Doesn’t get much press coverage. The truth hurts. Vote Ron Paul and give him a Congress that understands Business 101.
According to the department of labor statistics, the Bush Tax cut saved the country billions as 21 million people joined the workforce between 2002 and 2007. The government didn’t have to pay for many services on these newly employed Americans. Having 21 million more taxpayers resulted in more taxes being collected by the federal government not less as your chart shows.
For proof of this you don’t have to look very hard, the Brookings tax policy center for instance shows that total tax receipts where 1.782 trillion in 2003 (in 2002 incomes) and in 2008 (for 2007 incomes) the tax receipts where way up to 2.524 trillion. That’s 742 billion MORE taxes collected after the Bush Tax Cuts create jobs and economic growth, the direct polar opposite of what this chart shows.
This John Grooms must be a die hard Lefty, probably changed his name to John Obama Grooms. How stupid does he think we are. With the stupiod bail out of the Autos and Banks and the excessive spending this Obama Admin. has done only skyrocketed the debt. Now since Obama borrowed our futures away, we can only sit back and watch our Social Security fade away. I paid the Social Security out of my money. It should be unconsitional for anyone to use my money without my consent. This is what America has become a bunch of lies. If Obama and the DEms keep telling them over and over, eventually America will be brain washed.
Why do 1/2 of Americans deserve a free ride from income tax? How is 0 your fair share?
Since when did the Rolling Stone magazine become the place to get economic news? How about the Economist magazine? At least something where actual people educated in Economics work?
The Bush Tax cuts cut taxes for everyone! It never ceases to amaze me that the Dems push policies that hurt the economy, which always disproportionatly hurt the poor, who keep voting in more Dems! Don’t belive me, research for yourself, search for Black unemployment now vs 3 years ago. A good economy increases tax revenue, not rates! Idealists that don’t undestand basic economics are idiots!
In 1993 Clinton revised the tax code, which would be what we would have if the Bush era tax cuts were ended. The economy enjoyed the largest expansion in our nations history under the new revised tax rates. It created confidence in the market and created tons of jobs, contrary to what republicans claimed it would do (kill jobs, etc). You don’t have to read a magazine or go to some prestigious school to realize this FACT. However, all you need to ignore it…is to be ignorant. I now introduce the Republican party…..except for Ron Paul of course.
I normally only use the weekly issue ofCreative Loafing to line my canary’s cage, But i did notice this insipid article.It doesn’t suprise me that John Grooms writes for a rag like Creative Loafing, in addition to his bus boy and ditch digger jobs. He’s totally clueless! How about let’s see the data that backs up your fraudulent claims! Yeah, it’s all George Bush’s fault and not the nincompoop that currently hold the office of the president!
You conservitard goons will believe anything spoonfed to you by Fox News won’t you?
I don’t think it matters what media delivers to truth, if it’s Fox, WSJ, Weekly Standard or the Times. The truth is what it is and to deny it simple based on the fact you don’t like Fox is childish and uneducated.
Also the 1993 tax codes were fixed by the Republican Congress, the 90’s Republican Congress also forced their balanced budget on Clinton. The economy enjoyed a very large expansion because these Republicans fixed Clinton’s policies. You don’t have to read a magazine or go to some prestigious school to realize this FACT but it sure would help people who post under names like ‘$250K or less= No representation’.
“The Great Recession”….Yeah John, Obama may have inherited a recession, but he has turned it into a full blown out depression with his suffocating and irresponcible economic policies.
John, could you please indulge us and explain why Obama would himself extend “Bush Tax Cuts” if it was responcible for our economic demise…. Otherwise, you are accusing Barrack Obama of intentionally causing our country financial distress by extending the cuts….which is it?
I think you’re cherry picking information. Here’s “Five myths about the Bush tax cuts” written by someone from YOUR Brookings Tax Policy Center.
http://www.washingtonpost.com/wp-dyn/content/article/2010/07/30/AR2010073002671.html
The tax cuts were a bad idea to extend for the top earners, but that’s what the Republicans held a gun to the nations head to achieve. And what about the rest of the items on the chart? They don’t even mention medicaid part D which Bush pushed through. It’s funny that someone is crying about 1/2 the people paying 0 federal tax because of all of the tax cuts that have been going on to stimulate the economy, but on the other hand they don’t want tax increases. You benefit from the same tax breaks they do. Besides, we can’t increase taxes because the Tea Partyers say “no”. And why is someone else blaming the Dems about cutting their Social Security??? It was the Republicans that want to cut it and give you vouchers for your medicare idiot! Obama was trying to protect that!
this guy is a total moron who thinks we are stupid and have not been watching the paid for media drones propoting their agenda. you really do not have a freaking clue how stupid this article make you look really reallly realllyyyyy …stupid! you are a second rate actor, reading a b line script that eveybody knows….what a moron!! sheesh! you lefty lib’s reallyy do not get it!! AND NEVER WILL MAY GOD ALMIGHTY, THE REAL KING COME DOWN FROM HEAVEN AND SMITE EACH AND EVERY ONE OF YOU EVIL WICKED PEOPLE!
I DON’T UNDERSTAND WHY YOU TOTAL NINCOMPOOPS INSIST ON GIVING MORE TAX MONEY TO THE POLITICIANS IN WASHINGTON . THEY ONLY USE IT FOR THEIR OWN PERSONAL BENEFIT. LOOK HOW THE DEMOCRATS RAIDED THE TREASURY WHEN THEY STOLE MONEY FROM THE STIMULUS TO PRESERVE THEIR POWER.
The average government procedures seem designed to not make sense and to be as complicated as humanly possible. That has been the way of the government for a very long time maybe that is why they fight all the time. It’s much easier to fight over nonsense. Only difference is that with time these ways of theirs make things worst and worst for the average citizen.
while palin and bochman are bickering publicly and on the national scene,palin and bachman are playing a game with the american people trying to get the attention away from the republican ilete idealogs,power dogs,and money hogs while the republican elite idealogs,power dogs,and money hogs are off secretly making their plans to gut the rest of the economy,WAKE UP AMERICA SEND THE REPUBLICAN ELITE IDEALOGS,POWER DOGS,AND MONEY HOGS BACK HOME PERMANENTLY.VOTE THEM OUT OF POWER,,,,GOD BLESS AMERICA,,,JVC ,,,INDEPENDENT CANDIDATE FOR PRESIDENT 2012
Read these comments and you’ll know why I’m thinking of changing the name of the column to Casting Pearls Before Swine.
I’m not sure the “Bush Tax Cuts” ever really existed. The “Bush Spending Increases” sure did. Bringing the troops home and dismantling the empire is a great idea. Ron Paul has been saying this for years.