Comments on: The shock awaiting if the ‘super committee’ fails

By: matthewslyman

matthewslyman — Sat, 26 Nov 2011 13:58:09 +0000

Comments on my article about “Reaganomics” (link in my first comment above) now include AustinG’s basic criticism, and a defensive response from the author.

By: OneOfTheSheep

OneOfTheSheep — Mon, 21 Nov 2011 22:47:16 +0000

@AustinG,

“You reach a point where it isn’t worth it for some people to work more. In their own minds they are better off with less work and less stuff than more work and more stuff.”

You nailed it! This is also good for society when someone who has already “got theirs” steps back and allows the next qualified person to step into the vacated position.

By: AustinG

AustinG — Mon, 21 Nov 2011 21:13:25 +0000

Spriz,

I don’t have a link saved about solar plants being blocked by local lizards. A quick internet search lead me to this recent article in the NY Times.
http://www.nytimes.com/2011/02/24/busine ss/energy-environment/24solar.html?pagew anted=all

A project was blocked because it threatened the Mohave ground squirrel. Which I am sure is completely different than other local squirrel populations around the nation. Populations which seem to survive no matter what is developed around them. These projects can even win their lawsuits, but ultimately lose because they run out of money due to the cost of the delay. The article repeatedly makes the claim that these desert wastelands are “pristine” environments. So environments that few people want to visit that contain relatively little life are now “pristine”?

I don’t even know where to start on the taxes thing. The top marginal rate isn’t really a good indication of what taxes are overall or for a specific group. Between 1981 and 1982 the top rate went from 70% to 50%. The effective tax rate on income for the top 1% went from 21.5% to 20.4%. In 2000 the top rate was just under 40%, but the top 1% had an effective rate of 24% which is higher than it was when the top marginal rate was 50% or 70%.
http://www.cbo.gov/publications/collecti ons/tax/2009/effective_rates.pdf

That is before you get into things that effect economic growth. It is easier to grow a smaller economy than a larger one. You reach a point where it isn’t worth it for some people to work more. In their own minds they are better off with less work and less stuff than more work and more stuff. If you want that in numbers 10% of $500 billion is less than 3% of $15 trillion.

By: opuntia

opuntia — Mon, 21 Nov 2011 15:02:16 +0000

We always seem to remember those who harmed our way of life. There will be no exception here, politics will not save the individuals who failed to resolve this crisis. We the People are not responsible for this mess. When we voted them into office, we gave a mandate to be responsible. But once in office we cannot do too much other than impeachment or voting them out of office which all take time. That mandate will be our best weapon in getting them to respond to us, The People.

By: Newbeginning

Newbeginning — Sun, 20 Nov 2011 15:57:47 +0000

The American people should use the power of voting to change the current Congress and future Congressional individuals. Since the current Congress cannot and have not, been able to work together and resolve the budget crisis that we are in, the people should replace all the current members. In the upcoming election, do not vote for any existing member. In replacing all members, let the new Congress can agree on anything. If they cannot replace them next election. The same should be done with the Senate. Our constitution says “We the People….” and everyone should accept the responsibility of voting to make changes.

By: limapie

limapie — Sun, 20 Nov 2011 03:00:15 +0000

I think something this time around something WILL happen.
I think our two party system will evolve into a three party. Currently, in my state, we just elected a new senator and voted out a “lifer.” The old senator was
considered by many nationwide to be a “reformer.”
Our state went with the ultra-conservative Tea party
guy and since then our state has been really liking him.

Now, the Tea Party is not messing around. They have their heads on straight (most of the time.)
AND as has been evident this last legislative term, the
Tea party is gaining every day to make adjustments in
the old school.

All is not hopeless if this committee fails. The nation
just has to elect more Tea party into a majority of BOTH
the House and Senate….and then America will rebound
financially.

So….plan on voting conservative and throw the other bums out of office —Harry Reid for one.

By: Bartolo

Bartolo — Sat, 19 Nov 2011 15:16:18 +0000

Ihathaway, I agree, except that allowing all the Bush tax cuts to expire at the end of 2012 would be bad for the economy, as well as that result being a lasting excuse for the GOP to blame the continuing troubles on a “big Obama tax hike”.

Why not phase them out over a number of years beginning in 2013?

Also, it would be useful if the government or media would publish just how much taxes would increase for each income group under various scenarios of tax cut phase-out. I for one have long forgotten how much my taxes went down following those two big cuts.

By: lhathaway

lhathaway — Sat, 19 Nov 2011 14:10:19 +0000

It looks to me like, from the timing, that the root cause of the current deficit is the Bush tax cuts. I received one too, but it wasn’t that much and I would gladly pay it going forward to help the country get out of debt. Of course the wars and the prescription drugs (how can anyone not be astonished at what these drugs are costing, hidden by insurance and Medicare payments) are another big factor in the ruining of the federal budget, not to mention the bailout of the state and local governments which collapsed along with the housing market that is directly tied to their tax revenues. But at the root of it all are the Bush tax cuts which should expire across the board, no exceptions. Start with that and go from there.

By: losman14960

losman14960 — Fri, 18 Nov 2011 19:28:09 +0000

Some how most you are missing the whole point. raising taxes is never the answer. Cutting spending and waste is the only answer. If the government only had the amount of money it needed and actually spent it for the purpose that it was raised, there would never be any kind of deficit. Raising taxes is never the answer! Like any in household, when you don’t have it to spend only two things can happen, you borrow (hence debt) or you do without (no debt.) what an amazing concept! If the government borrows the only way to pay the debt is to tax the citizens or it continues to incur more debt in interests. There are so many programs and the federal government should not be into. Schools! Bailing out private and public enterprises. Look at Fanny Mae and Freddie Mae, the bozos are giving themselves well deserved million dollar bonuses because they were able to get free money (waste) from the federal government. All the banks that received money loans at 1% interest rates and turned around and loan the money back to the government at 3%. Without making a single loan to any individual they were able to give themselves ridiculous bonuses. let me stop, you get the picture, i hope. Oh, yea, all the money the the banks loan back the federal government, no one is talking about, actually helped to increase the deficit almost three times. I’m all for reelecting this president. I think he has done an admirable job of wasting our money. There are many in powerful folks in government that have been there more than half their lives and have not fix the government. Guess what? They are the problem. Should we really trust the government with our money? I definitely say NO, but i hear a lot of you saying otherwise.

By: Dafydd

Dafydd — Fri, 18 Nov 2011 11:37:09 +0000

Mr Easterbrook, reality is just beginning to dawn but you remain a long way from daylight.

The US will not go bankrupt in the long term. But in the medium term. Why has it taken this long for Italy to find itself in hot water? The reason is Greece.

When will the US start to feel warm? After Italy, or maybe France, or the UK. This is not long term.

You are right to note that the Reagan years are when this began. The absolute refusal to raise taxes ever since has made fiscal discipline impossible, irrespective of spending.

At what point is it too late? When Obama was elected and failed to raise taxes in his first year.

There is no way back now, US debt is over 100% GDP. Default is the only way out. Sincerely I advise you to get on with it and start to rebuild.