Showing posts with label deficit. Show all posts
Showing posts with label deficit. Show all posts

Thursday, October 10, 2013

Three Things Patriotic Americans Should Know About The Government Shut-down















Three Things Patriotic Americans Should Know About The Government Shut-down

1. Conservative Money from radical anti-American conservative groups is behind the shut-down. There is no blame to spread around, conservative Republicans are completely responsible for the shut-down and any consequences suffered by any American from park visitors to families of veterans killed in action, The Money Behind the Shutdown Crisis

Representative Aaron Schock is a conservative Republican from Illinois, but not conservative enough for the hard-right activist group Club for Growth, which is seeking someone to run against him in next year’s primary.

His crime? In 2011, he voted to increase the debt ceiling, and, in 2012, he voted for a stopgap spending bill that prevented a government shutdown. In neither case did he demand the defunding of health care reform.

Club for Growth and other extremist groups consider a record like his an unforgivable failure, and they are raising and spending millions to make sure that no Republicans will take similar positions in the next few weeks when the fiscal year ends and the debt limit expires.

If you’re wondering why so many House Republicans seem to believe they can force President Obama to accept a “defunding” of the health care reform law by threatening a government shutdown or a default, it’s because these groups have promised to inflict political pain on any Republican official who doesn’t go along.

Heritage Action and the Senate Conservatives Fund have each released scorecards showing which lawmakers have pledged to “defund Obamacare.”

2. Conservative Republicans have been planning the shut-down for months

Shortly after President Obama started his second term, a loose-knit coalition of conservative activists led by former Attorney General Edwin Meese III gathered in the capital to plot strategy. Their push to repeal Mr. Obama’s health care law was going nowhere, and they desperately needed a new plan.

Out of that session, held one morning in a location the members insist on keeping secret, came a little-noticed “blueprint to defunding Obamacare,” signed by Mr. Meese and leaders of more than three dozen conservative groups.

It articulated a take-no-prisoners legislative strategy that had long percolated in conservative circles: that Republicans could derail the health care overhaul if conservative lawmakers were willing to push fellow Republicans — including their cautious leaders — into cutting off financing for the entire federal government.

“We felt very strongly at the start of this year that the House needed to use the power of the purse,” said one coalition member, Michael A. Needham, who runs Heritage Action for America, the political arm of the Heritage Foundation. “At least at Heritage Action, we felt very strongly from the start that this was a fight that we were going to pick.”

Last week the country witnessed the fallout from that strategy: a standoff that has shuttered much of the federal bureaucracy and unsettled the nation.

To many Americans, the shutdown came out of nowhere. But interviews with a wide array of conservatives show that the confrontation that precipitated the crisis was the outgrowth of a long-running effort to undo the law, the Affordable Care Act, since its passage in 2010 — waged by a galaxy of conservative groups with more money, organized tactics and interconnections than is commonly known.

With polls showing Americans deeply divided over the law, conservatives believe that the public is behind them. Although the law’s opponents say that shutting down the government was not their objective, the activists anticipated that a shutdown could occur — and worked with members of the Tea Party caucus in Congress who were excited about drawing a red line against a law they despise.

A defunding “tool kit” created in early September included talking points for the question, “What happens when you shut down the government and you are blamed for it?” The suggested answer was the one House Republicans give today: “We are simply calling to fund the entire government except for the Affordable Care Act/Obamacare.”

The current budget brinkmanship is just the latest development in a well-financed, broad-based assault on the health law, Mr. Obama’s signature legislative initiative. Groups like Tea Party Patriots, Americans for Prosperity and FreedomWorks are all immersed in the fight, as is Club for Growth, a business-backed nonprofit organization. Some, like Generation Opportunity and Young Americans for Liberty, both aimed at young adults, are upstarts. Heritage Action is new, too, founded in 2010 to advance the policy prescriptions of its sister group, the Heritage Foundation.

The billionaire Koch brothers, Charles and David, have been deeply involved with financing the overall effort. A group linked to the Kochs, Freedom Partners Chamber of Commerce, disbursed more than $200 million last year to nonprofit organizations involved in the fight. Included was $5 million to Generation Opportunity, which created a buzz last month with an Internet advertisement showing a menacing Uncle Sam figure popping up between a woman’s legs during a gynecological exam.

The Kochs and Freedom Partners Chamber of Commerce want to mold the USA into something that resembles feudal lordships, with average American workers earning slave wages, powerless and without health care insurance. That is how they define freedom, a USA that looks like a few feudal lords having all the power, throwing the concept of government by and for the people in the trash.

3. Conservative Republicans claim they are acting out of principles, that the deficit is out of hand. That is a baldfaced, shameless lie, Obama has done a remarkable job of getting the debts George Bush and conservatives ran up ( see chart at top) under control, False Equivalence That Leans on Public Opinion Is Still False Equivalence. Here's a fact: The deficit is falling. Here's another fact: Americans don't know the deficit is falling.

Friday, August 16, 2013

Patriots Know The Deficit is Shrinking, Even Though Anti-American Conservatives Scream Otherwise

Patriots Know The Deficit is Shrinking, Even Though Anti-American Conservatives Scream Otherwise
Remember all those deficit hawks who screamed that the federal deficit is spiraling out of control and must be stopped with spending cuts that have a funny way of hurting the pocketbooks of the most vulnerable Americans? Their excuse for ripping us off has been literally disappearing, but a new Google survey shows that not only do the vast majority Americans not know it — half of the public actually believes that the deficit is growing [3].

Here are the facts: The U.S. budget deficit has been shrinking at a rapid rate over the last few months. The deficit peaked at 10.2 percent of GDP in 2009, but over the past four quarters, it has shrunk to a mere 4.2 percent of GDP. What’s more, the Congressional Budget Office predicts [4] that the deficit will fall to 2.1 percent of GDP in 2015.

Why such a disconnect? Unfortunately, disgraceful propaganda has left the public misinformed and confused.

Over in Economic Wonderland, the deficit hawk duo of Alan Simpson and Erksine Bowles have made a second career over the last several years wildly exaggerating the deficit issue and scaring Americans into thinking that deep cuts in the federal budget were necessary for the economy. The reality was just the opposite. If these two had ever sat down to read John Maynard Keynes, whose work is vital to understanding how to respond to economic crises, they would have known that cutting the federal budget when the economy is weak actually slows it down even more.  Yet to this day, Simpson and Bowles continue waging battle for a “grand bargain” that would shred the social safety net and cost many Americans their jobs by requiring trillions of dollars to be cut from the federal budget over ten years. All in the name of a “problem” that doesn’t even exist.

Deficit hawks like Simpson and Bowles, and their grand funder, hedge fund billionaire Pete Peterson, go on promoting the nonsense that the deficit is the major economic problem of 2013 despite the obvious facts and a growing consensus from economists that such a claim is utterly absurd. Incredibly, they do it even after the faulty work they relied on to make their case – a paper produced by two Harvard economists, Carmen Reinhart and Kenneth Rogoff – was discredited by a mere grad student [5] in one of the great academic revelations of our time. Even conservative economists are bowing to reality. The folks over at the conservative American Enterprise Institute, for example, have come to the conclusion [6] that austerity is a terrible idea and that without proper stimulus, the U.S. economy would look a lot more like Europe’s, where individual countries without sovereign currency have been forced to go the austerity route. It’s getting increasingly hard to deny that things have gotten pretty ugly over there because of deficit hawks and their ilk.

But deficit hawks are paid well to misinform the public. They write reports. They get corporate honchos to help them run campaigns with innocent-sounding names like “Fix the Debt.” They build websites. They write articles. They hold conferences. They pay off think tanks – even progressive ones – to play ball with them.  And the corporate dominated major media frequently are happy to play along. On it goes, until the lies repeated to the public take on the ring of truth.

So it’s no surprise that the public is not aware of the important news that the deficit is shrinking. Or that it is shrinking precisely for the reason progressive economists have been saying all along. When you have a recession, you have to juice the economy through government investment. That, in turn, reaps you the benefit of more money in people’s pockets, which leads to more jobs, more tax revenue for the government, and less reliance on social safety net programs like unemployment insurance or food stamps. If the original stimulus package had been bigger, the deficit would have shrunk even faster.

The deficit hawks have been more than spectacularly wrong. They have impacted policy in a way that turned the attention of Washington away from what it should have been focused on all along – jobs. Instead of a deficit commission, Obama should have called for a jobs commission to address the fact that hard-working people have not been able to find jobs to feed their families because of a Wall Street-driven financial crisis.

One might hope that the reality emerging will help squelch the calls to recklessly cut government investment in the economy. But there’s a big problem: Deficit lies benefit the 1 percent in the short-run. Rather than shrinking the deficit, what the short-sighted, greedy rich in America really want to shrink is their tax liabilities, which is why they don’t want to pay for things like education, infrastructure, and social safety net programs that benefit the population and ultimately help keep the economy humming.  The financiers among them would also dearly like to privatize things like Social Security so that they can collect fees on American retirement accounts. The corporate honchos like the way austerity drives up unemployment and drives down wages because they hold the mistaken view that keeping workers stressed and vulnerable is good for their bottom line. They want people like Larry Summers to head the Federal Reserve, who, while in the White House as the president’s chief economic adviser , famously presided over a stimulus program many economists warned was way too small.

In the fall, will deficit hawks in Congress manage once again to hold the American economy hostage? Or will reality finally rear its head? Facts have a tough time competing with well-funded mythology.

They're making up numbers and being shamelessly greedy because they believe, in the same way that cultist believe crap, that safety net programs like Social Security and Medicare are too expensive*. Conservative cultists dogma says that the people cannot join together to have the government run safety net programs for them - because we all know the history of economic recessions. We will have them and American workers always suffer the most. Conservatives and most libertarians just don't care. They always blame their screw-ups on workers and the poor. If workers and the poor had that much power we would have strong regulations in place that would prevent corporate America from acting like drunker casino dealers. The plutocrats will always come out on top, they don''t take risks with their money, they take risks with the assets of the American people.



* even though Social Security is run from its own fund and most of Medicare is funded by the working class Americans that need it most.)

Wednesday, March 13, 2013

Why Is The Media Echoing The Conservative Deficit Zombies When They Do Not Represent The Views of Real Americans












Why Is The Media Echoing The Conservative Deficit Zombies When They Do Not Represent The Views of Real Americans

Why are so many Washington officials obsessed with budget deficits?  And why are they so willing to entertain big cuts to social programs such as Social Security, Medicare, and education, while being reluctant or outright unwilling to increase taxes on the highest income earners?  The answer cannot be that most Americans want these choices. Survey after survey shows that large majorities support asking the wealthiest to pay more in taxes and want to maintain or increase spending on Social Security and federal health and education programs.

A possible answer to where budget hawks get energy and inspiration comes from the first systematic survey social scientists have managed to do of the political attitudes of wealthiest one percent of Americans. Working with a team of scholars from several disciplines, I have conducted a study called the “Survey of Economically Successful Americans and the Common Good.” Most national surveys include only a tiny number of very wealthy citizens, but we used additional data sources to identify a larger sample of wealthy individuals living in the greater Chicago metropolitan area.  Further research would be needed to explore attitudes among the very wealthy living everywhere in the United States.  But our findings are highly suggestive of what would be found in a nationwide study.  For the first time, we are able to pinpoint issues on which the very wealthiest agree or disagree with other Americans.

On Key Budget Questions, the Wealthy Have Distinctive Priorities

The wealthy respondents to our survey expressed great concern about budget deficits:

    Fully 87% called deficits a “very important problem” facing the United States, more than attributed such importance to unemployment, education or anything else on a list of eleven potential national challenges.
    On an open-ended question that asked respondents to name the most important problem facing the country, a hefty 32% of the wealthy mentioned budget deficits or excessive government spending, far more than cited any other problem.
    Only 11% of the wealthy mentioned unemployment or education as America’s top problem.
    Wealthy respondents tilted toward cutting back – rather than expanding – federal government spending on Social Security and health care.

By contrast, in a national survey taken about the same time as our survey, only seven percent of all Americans mentioned deficits or the national debt as the most important problem, while 53% cited jobs and the economy as the top problem.  Average Americans also leaned toward expanding rather than cutting back on major federal outlays for Social Security and health care.

Disagreements on Jobs and Income Supports

Most wealthy respondents to our survey opposed a wide range of job and income policies that majorities of ordinary Americans favor. Our respondents were against setting the minimum wage above the poverty line; providing a decent standard of living for the unemployed; increasing the earned income tax credit; and having government provide jobs for everyone able and willing to work who cannot find private employment.

Likewise, the wealthy opposed – while most Americans favor – providing health insurance financed by tax money; spending “whatever is necessary” to ensure that all children can attend good public schools; making sure that everyone can go to college can do so; and investing more in worker retraining and education to help workers adapt to changes in the economy.

The general American public favors more regulation of big corporations, but our wealthy respondents tend not to favor this idea. Most Americans favor using corporate income taxes “a lot” to get revenue for government programs, but most of the wealthy do not favor this.

Darth Vader's human embodiment Dick Cheney famously said that deficits did not matter, he and his conservative comrades tanked the economy, and Democrats took the wheel of the ship they sunk. Suddenly deficits were the most important thing in the world. What is important is rising more revenue, creating jobs, protecting the environment, educating the next generation, reeducating adults to have the skills for new jobs and getting everyone health. What the wealthy want or want conservatives want is irreverent. Conservatives and the conservative wealthy trashed America. They deserve what they reaped. To be ignored.

Fox News and CNN conservative pundit Erick Erickson : Give A Medal To Store Employee Who Beat Shopper's Child With Belt. How can the USA call itself a merit based society when this assclown makes a six figure salary for being a political analyst.

Tuesday, March 5, 2013

How Republicans Are Using Austerity To Tank The Economy or Why Do Conservatives Hate America
















How Republicans Are Using Austerity To Tank The Economy or Why Do Conservatives Hate America

Congress will not avert the dreaded sequester – the government’s latest wheeze to deal with the phony “deficit crisis.” Never mind that the very same deficit is projected to fall under $1 trillion this year for the first time since 2008, according to the CBO. Politicians and the chattering classes rail about the deficit, while in the meantime, Americans can’t find jobs. Our neighbors, friends and fellow citizens have suffered from a persistently high unemployment rate of 8 percent through 2012, and worse, an underemployment situation of around 15 percent. Why doesn’t this very real crisis generate concern? Why all of the fuss about a nonexistent emergency?

Conservatives talk indignantly about government profligacy to justify their deficit obsession. But our large deficits (which peaked some three years ago) can almost always be expected to result from recessions because of what economists call “automatic stabilizers.” These are safeguards that have been in place since the Great Depression – things like unemployment insurance, welfare, food stamps and the like. These programs were introduced precisely to avoid the kind of human misery a great many of our citizens experienced during that earlier catastrophe. These income transfers are also the reasons -- not the bailouts to our banks -- why the economy has escaped the kind of freefall experienced in the early 1930s.

A major consequence of this policy choice, which is supported by the vast majority of Americans, is that budget deficits in the US are largely automatic and non-discretionary. So recessions create budget deficits, much as private sector booms reduce deficits.

True, we are not booming by any stretch today. But even against this sluggish backdrop, over the last three years, the deficit has experienced a 30 percent drop as a percentage of GDP. That suggests the patient is slowly recovering, but not fast enough. The current rate of job creation is not only insufficient to replace the jobs lost since the crisis, but can’t even keep up with labor force growth. At the recent pace of job creation, we only fall further behind. Withdrawing the medicine prematurely risks creating a relapse in the economy.

And there is much more to do. We need to use this period of historically low interest rates to borrow so as to improve our productive capacity as an economy going forward. As anybody who wanders around major American cities can see, the country has fallen into disrepair. Just ride in any New York City taxi cab and see how well your back survives the journey. But before we can rebuild our pothole-ridden roads, repair our decaying grids, or deal with energy or climate change, we must challenge and reject all of the nonsense about long-term budget deficits, national bankruptcy or insolvency, and even “fiscal responsibility” that we are hearing from Congress and the chattering classes.

The real fiscal responsibility lies in understanding how we invest in the future with jobs, education and decent roads and bridges. Letting our country fall apart, on the other hand, is the height of irresponsibility.

If the US continues to make headway on the jobs front, it will do even better on the deficit front, which is why any sensible economist will tell you that deficit reduction per se should never be an object of government policy. In a market economy, employment is the main source of income for most of the population. Economic growth creates jobs. Without paying jobs, individuals are unable to pay taxes.  In capitalist, wage-labor societies, therefore, joblessness creates a long list of other kinds of waste that Congress never talks about—the breakup of families, rising alcoholism and drug addiction, higher crime rates, absolute and relative poverty, damage to social status and self-respect, adverse psychological and physical health effects, stress, suicide, crime and other anti-social behavior.

During WWII, the government’s deficit -- which one year reached 25 percent of GDP -- raised government’s public debt ratio above 120 percent, much higher than the ratio expected to be achieved by 2015. Further, in spite of the siren songs warning of the evils of high national public debt, US growth in the postwar period was robust—it was the golden age of US economic growth. And guess what? The debt ratio came down rather rapidly, mostly not due to budget surpluses and debt retirement, but rather due to rapid growth that raised the denominator of the debt ratio.

More here, Pundits Still Getting Sequester and Budget Debates Wrong and here,  The most striking and disconcerting thing about the latest round in the budget war is that the debate within the Republican Party is proceeding on the basis of completely false premises.

Tuesday, December 11, 2012

Why Does Bill O'Reilly Hate His Viewers and Feed Them Lies




Why Does Bill O'Reilly Hate His Viewers and Feed Them Lies

Fox News host Bill O'Reilly falsely suggested that President Obama's proposal to let Bush tax cuts expire could leave some wealthy Americans paying 40 percent of their incomes in federal taxes. But Obama has only proposed letting taxes on the top income bracket increase -- which means only income over $200,000 would be affected -- and very few Americans pay more than 35 percent in U.S. taxes.

This tax discussion comes as the Obama administration and the Republican House try to reach a deal on the automatic tax hikes and spending cuts known as the fiscal cliff.

O'Reilly told guest Adam Corolla that "your state's up to about 14 percent state income tax. President Obama wants to raise it up to about 40 percent federal. That's 54 percent. If he knocks out the deduction for state income taxes, which he wants to do, you'd be paying 54."

This is a complete misunderstanding of how income tax brackets in the United States work. President Obama has proposed letting the Bush tax cuts for the wealthiest Americans expire, which means the top income tax bracket would increase from its current 36 percent to 39.6 percent. But those rates would only apply to income exceeding $200,000. A taxpayer filing as "single" would currently pay a series of increasing marginal rates on his or her income, beginning with a rate of 10 percent on the first $8700 of income and ending with a rate of 35 percent on income over $388,350. And many taxpayers are able to take deductions, which limit their tax liability.

The taxpayer's effective rate almost always ends up much lower than 35 percent. According to the Tax Policy Center, in 2008, only 10,228 out of 142,450,569 total tax filers paid more than a 35 percent effective tax rate. That's only .0072 percent of tax returns.

As the Center on Budget and Policy Priorities has noted, "a taxpayer's marginal tax rate is the tax rate imposed on his or her last dollar of income." CBPP added: "Taxpayers' average tax rates are lower -- usually much lower -- than their marginal rates.  People who confuse the two can end up thinking that taxes are much higher than they actually are."

Federal income taxes are currently at their lowest rate since the 1950s. Republicans are acting like cry babies over taxes being raised on millionaires from 36 to 39.6%. Talk about false outrage. This is the income bracket that benefits most from infrastructure and a very expensive military/industrial complex. They should be paying rates closer to 42%. In 2008 the average American helped bail these "makers" Producers' champions of capitalism with hundreds of billions of dollars in loans. Now the same arrogant elitists are complaining about doing their part to help rebuild America. Conservative thinking like Bill O'Reilly's is clearly not patriotic American thinking. Bill and his network have an utter contempt for America and its values. You can tell by the endless stream of spin and falsehoods. Indicative of every radical anti-freedom movement in history.

Friday, May 25, 2012

If Anti-American Conservatives James Pethokoukis and Ann Coulter Used Their Math at NASA All Missions Would Crash and Burn




















If Anti-American Conservatives James Pethokoukis and Ann Coulter Used Their Math at NASA All Missions Would Crash and Burn

I was late to the excellent MarketWatch story debunking the notion that President Obama’s been on a spending binge; I spent most of Tuesday traveling. But after my “Hardball” segment on it Wednesday, Ann Coulter tweeted: “Joan Walsh says that Marketwatch chart is ‘unbelievable’! Why yes it is, in the sense of being untrue.” That’s when I saw that there was shrill but lame GOP pushback on Rex Nutting’s excellent story, from both Coulter and the American Enterprise Institute’s James Pethokoukis. I don’t normally reply to Coulter’s right-wing delusions — I haven’t written a column about her in five years – but since I think Nutting’s findings are a crucial corrective to GOP lying, I wasted my Wednesday night trying to understand the GOP attempt to discredit him. You’re welcome.

Coulter admits she relies on Pethokoukis, so let’s go directly to the source. To recap, Nutting crunched Office of Management and Budget and Congressional Budget Office numbers to find that under Obama, spending has risen at an annualized rate of 1.4 percent, less than any president since Dwight Eisenhower. It jumped 8.1 percent in the last three years of the George W. Bush presidency, and in fiscal year 2009, for which Bush approved the budget, it jumped 17.9 percent. But Bush isn’t the most profligate Republican: Ronald Reagan increased spending an average of 8.7 percent in his first term.

Pethokoukis quarrels with Nutting’s assigning Bush’s budget to Bush, because “Obama chose not to reverse that elevated level of spending; thus he, along with congressional Democrats, are responsible for it.” Exactly how one president undoes the spending approved by another president under a different Congress goes unexplained. The AEI pundit also argues that we should look at federal spending as a percent of GDP, and he notes that’s gone up under Obama, attempting to prove that Nutting is mistaken – but that’s a useless metric during a recession, which by definition shrinks GDP.

Coulter goes even further (of course). “It turns out Rex Nutting, author of the phony Marketwatch chart, attributes all spending during Obama’s entire first year, up to Oct. 1, to President Bush.” (The italics are in the original; they’re where the good writing is supposed to be.) She continues: “That means, for example, the $825 billion stimulus bill, proposed, lobbied for, signed and spent by Obama, goes in … Bush’s column.”

Shockingly, Coulter is … wrong. First of all, only about $120 billion of the stimulus was spent in fiscal year 2009 – and Nutting counted it in Obama’s column.

 Why do conservatives lie so often and so blatantly without the slightest regard for values like integrity. because they cannot win arguments if they have to stick to the facts. Bush 43 started his presidency with a federal surplus. he ran up the largest spending spree in US history. Conservative Republicans who ran all three branches of government for 6 of those years made no attempt to pay for their spending. Then they crashed the economy (conservatives and Wall Street  crashed the economy, not Freddie Mac or Fannie May).

Anti-American web site The Weekly Standard, Cherry-Picks BLS Data To Attack Obama's Economic Record

Typical American Worker Would Need 244 Years To Match CEO’s Annual Salary

Thursday, May 17, 2012

Chart Shows President Obama Has Controlled Spending, Lowered Taxes and Deficit






















Chart Shows President Obama Has Controlled Spending, Lowered Taxes and Deficit

Federal spending is lower now than it was when President Obama took office. I’ll pause to let you absorb the news.

In January 2009, before President Obama had even taken the oath of office, annual spending was set to total 24.9 percent of gross domestic product. Total spending this year, fiscal year 2012, is expected to top out at 23.4 percent of GDP.

Here’s another interesting fact. Taxes today are lower than they were on inauguration day 2009. Back in January 2009, the CBO projected that total federal tax revenue that year would amount to 16.5 percent of GDP. This year? 15.8 percent.

One last nugget. The deficit this year is going to be lower than what it was on the day President Obama took office. Back then, the CBO said the 2009 deficit would be 8.3 percent of GDP. This year’s deficit is expected to come in at 7.6 percent.

The fact is that Obama inherited a disaster of a federal budget. Eight years prior, when President George W. Bush took the oath of office, there was a $281 billion surplus. By the time Obama was sworn in, he was facing a $1.2 trillion deficit. Inconvenient though it may be for conservatives (especially those who are running for president), the truth is that spending, taxes and the deficit are all lower today than when President Obama took office.

Conservative Republicans, those people who claim to have values, have spun a whole new reality when it comes to the nation's finances. They can't stick with the facts because the facts show that conservatives always sabotage America's future.

Why is Big Oil trying to defeat President Obama?

Mitt Romney Debt Speech Ignores Key Facts Romney plan would increase deficit by $5 trillion over ten years. Includes even more tax cuts for billionaires.

All Institutions Are Prone to Corruption and Conservative Republicans Like It That Way

Tuesday, April 3, 2012

Repealing Health Care Reform (ACA) Would Increase Government Debt





































Repealing Health Care Reform (ACA) Would Increase Government Debt

A new report by an independent government auditor concludes that implementing President Obama’s health care law as intended will make a significant dent in the long-term debt forecast.

The report comes as Supreme Court justices weigh striking some of “Obamacare’s” central provisions — and perhaps the law in its entirety — and as the Republican Party remains committed to repealing the law if it seizes control of government in November.

“[I]f the Patient Protection and Affordable Care Act (PPACA) is implemented as intended it would have a major effect on the [fiscal] gap but would not eliminate it,” the Government Accountability Office wrote in a Monday report — a conclusion in line with its own past research and similar research conducted by other government and non-government analysts.

GAO doesn’t isolate PPACA’s stand-alone contribution to long-term budget consolidation. But it does conclude that if key cost-control measures in the law, and other automatic cuts to Medicare spending baked into current law, are ignored, or overridden by Congress, the implications for the national debt are vast.

If “Obamacare” is implemented as intended, and other measures, such as automatic payment cuts to Medicare physicians, take effect, “spending on Medicare and Medicaid grows from 5 percent of GDP in 2010 to over 7 percent by 2030.”

By contrast, if Congress overrides those provisions, “[s]pending on health care grows much more rapidly under this more pessimistic set of assumptions,” according to the report.
 It is not as though conservatives really care about the deficit. It exploded partly because of the Bush tax cuts and failure to rise revenue for two wars. The first time in modern US history a president and his party did not attempt to pay for its foreign policy decisions. 

Friday, March 2, 2012

Conservative Romney’s plan would increase debt to 96 percent of GDP by 2021








Romney’s plan would increase debt to 96 percent of GDP by 2021

Several independent analyses have shows that the economic plans put forth by the GOP presidential candidates Mitt Romney and Rick Santorum would cause the deficit to explode. Just last month, Romney — who won the Arizona and Michigan primaries this week — unveiled a plan that would increase deficits by $10.7 trillion.

But Rep. Paul Ryan (R-WI), who chairs the House Budget Committee, told Bloomberg TV today that he finds the GOP candidates’ plans “very credible,” before he went on complain about the Obama administration’s budget for increasing deficits too much:

    Very credible. They are talking about entitlement reform. They are putting specifics on the table on Medicare and Social Security reform. The president, knowing that these are the big drivers of our debt, is ducking it. He gave us a budget that increases spending about $1.5 trillion and has a tax increase of $1.9 trillion. So out of the $47 trillion he is planning over the next ten years, he only wants to deliver about $400 billion of deficit reduction– is a scintilla of deficit reduction. It is ignoring the program, punting, ducking the issue. It’s the fourth budget from the president. It is not serious. We need serious leadership, and both of these candidates have put very credible, specific, serious plans on the table.

Ryan then dismissed the Tax Policy Center analysis showing that Romney’s planned 20 percent reduction in tax rates and repeal of the Alternative Minimum Tax would increase the debt by $3 trillion, claiming that Romney has “base broadening” that will offset the cost. Romney has made the same claim, but has yet to provide any specifics about what sort of tax provisions he’ll eliminate. Simply put, his plan’s math doesn’t add up.

According to the Committee for a Responsible Federal Budget, Romney’s plan would increase debt to 96 percent of GDP by 2021, unless he actually follows through with his offsets, at which point it would go to 86 percent. Santorum’s plan, meanwhile, would bring it to 104 percent of GDP. The Committee’s “realistic baseline” for the debt projects it going to 85 percent of GDP by 2021. So all of the GOP candidate’s plans (except for Ron Paul’s) make the debt projection substantially worse.

Ryan, of course, has plenty of experience with budget-busting economic plans, so perhaps its not surprising that he finds the latest offerings from the GOP candidates so enticing.

At no time when conservative Republicans have held the nations' purse strings have they presented a reasonable or balanced budget. During the Bush years as some may remember Republican John Mccain even said conservatives were spending like "drunken sailors". Conservatives seem to have no concept of math or what is best for America. Conservatism has become the sheath anti-America movement, hiding its radical agenda behind a lot flag waving fake patriotism.