Wednesday, July 27, 2011

Another incisive read on deficits...

Broke dicks can't pay their bills let alone pay their fair share of taxes. Broke dicks need jobs above minimum wage, way above, to pay their way through life.

It ain't happening! We gave our middle class to foreign countries to make them like us and the working stiff is paying for it.

yes, I know they also voted for it!

The Trade Deficit is the Most Important Deficit » New Deal 2.0
Closing the budget gap will require a progressive industrial policy, not regressive spending cuts.

Between 1962 and 2009, the cumulative trade deficit of the United States almost exactly equaled the cumulative Federal budget deficit: 7,426 billion for the budget deficit, a couple of billion less for the trade deficit. That is, when you add up all the deficit numbers for those 28 years, both the trade deficits and the budget deficits have generated the same amount of red ink. The Republican House members, in particular, use fear-mongering to convince the public that the federal budget deficit is going to destroy the economy. But what about the trade deficit?

As Marshall Auerback and others have been arguing, focusing on cutting the federal budget deficit during an economic downturn can harm the economy, putting people out of work, for one thing. Our government discovered this in 1937, when a push to balance the budget led to a mini-Depression. But tanking the economy is exactly what is being discussed in Washington; every alternative on the table involves cutting spending, which will cut jobs, which will lead to even less revenues for the government, bigger deficits, and even more job losses.

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