America’s Debt And The Economically Illiterate

From the best and seriously conservative Economist, it is embarrassing to our nation that the US is led by people who haven’t the slightest idea about basic economics, or have chosen to ignore economics for personal advantage.  Either way we are stuck in a stagnant economy, huge unemployment and nothing happening to reverse course.

The sticking-point is not on the spending side. It is because the vast majority of Republicans, driven on by the wilder-eyed members of their party and the cacophony of conservative media, are clinging to the position that not a single cent of deficit reduction must come from a higher tax take. This is economically illiterate and disgracefully cynical.

via America’s debt: Shame on them | The Economist.

No Future For Nation With These Politicians

These politicians work for a very narrow group of powerful rich who refuse to pay taxes and who reach out to cut back our social safety nets at whatever cost to the community and the middle class.

Boehner isn’t really in charge of the House Republican caucus. The lunatics are. And it looks like they’ve won.

via Lunatics Prevail In House Republican Caucus; Boehner Reportedly Gives Up On Grand Bargain Because It Would Increase Taxes | The New Republic.

Wrong To Cut Spending Now And It Should Be Increased

It is entirely voodoo economics to reduce government spending in the face of serious unemployment.  Consumers are not spending.  Business is not expanding and investing.  Housing is a mess.  Exports are so-so.  The only real spender left is the federal government, since state and local governments are still cutting spending and employment.

“Across the board it was a weak [jobs] report,” said Michelle Meyer, a senior U.S. economist at Bank of America Merrill Lynch, in New York. “The recovery is still fragile and growth will continue to be slow. The economy is healing very gradually.”

via U.S. Payrolls Rise 18,000; Jobless Rate Climbs to 9.2% – Bloomberg.

Just Like The City Manager Of Coral Gables

The city manager planned–as was bought into later by the city commissioners (except one)–and hid his designs for a huge post-election investment program and, and along with one commissioner (real estate broker and banker), distorted the real cost of the financing the program by stating that since the debt payments had been budgeted, there is no additional cost to the city of the refinancing.

A first year economics student at UM can tell you that this is pure baloney.

Indifference to public opinion in Miami-Dade, including Coral Gables, is because of voter indifference and politicians’ dislike for good, transparent and participatory government.

Of course neither the White House nor congressional leadership has shown the slightest interest in keeping the American people informed about any step of this process, and they have evinced even less interest in reflecting the values and opinions of the American people. Public opinion counts for almost nothing these days in guiding public policy.

via Jeffrey Sachs: Restoring American Democracy.

More On Keeping Up The Spending

..Keynes denied that the market system had any internal mechanism for maintaining full employment. This meant that economies could drift on for years in a state of semi-slump. Governments should therefore assume responsibility for maintaining full employment. They could do this by securing enough spending power in the economy to employ all those who wanted to work. He invented macroeconomics. This was much more than just ‘sound money’: it involved fiscal and regulatory policy too.


via Robert Skidelsky – Keynes for the 21st century.