Tuesday, May 09, 2017

Deficit Myths of the Past Still Haunt US

Dean Baker at TruthOut has an interesting essay (excerpt):

Most of us know about the famous Republican fairy tale on deficits in which tax cuts pay for themselves through increased growth. Grownups know this is nonsense. There is a large body of research showing that any growth spurred by tax cuts will be nowhere near large enough to cover the lost revenue. We also did this experiment twice: under Reagan and George W. Bush. We got large deficits.
But the Republicans are not the only ones who push deficit myths. The Democrats have their own, which while not quite as wrong-headed, can lead to equally bad policy.
The Democratic deficit myth centers on the deficit reduction during the Clinton years. According to the myth, Clinton took the politically hard steps needed to balance the budget and eventually run a surplus. He cut spending and raised taxes.

Be sure to read the whole thing.  No ox goes ungored.  


Debt to the penny:
May 10, 2017, $19,846,195,521,326.19
Jan 20, 2017,   $19,947,304,555,212.49
Nov 08, 2016, $19,806,239,858,606.04

80 comments:

dodahman said...

Ok the $4 coffee filter(all in) came yesterday, the first day of the 3 week window I was given. Mailed from China.

Seems to work fine. If it lasts more than 3 months, cheaper than paper filters. One issue is cleaning it out. If I lived on public sewer, I would rinse out the remaining grounds after tapping what I could into the compost bowl. Since I have septic tank, I am wondering...
Anywho the coffee tasted fine. The device seems well built. I see so little profit in it, questions remain why someone would even send it...

Good morning all. Have a cup on me.

Cinco-X said...

I think it's quite probably that no tax increase plus more government debt does spot growth. But the projects that for which this new debt is earmarked should be revenue positive. Otherwise, the debt eventually becomes unsustainable

Rob Dawg said...

Seems the "urban rennasiance" has petered out. Increasing signs of friction in the big cities. Let us hope we don't start pouring money into those problems.

Tom Stone noted that San Francisco has plateaued and he sees many rich types seeking out enclaves like Sebastapol as SHTF backup plans.

Coffee sounds good about now. Maybe half-caf however. I'm on septic and never worried about coffee grounds. If it goes in the compost pile it should be fine in the tank too.

Lawyerliz said...

I sprinkle it uncomposTed on the roses. Doesn't seem to hurt.

Lawyerliz said...

Raise the SS cap a bit. Those people get a higher payment. Raise the retirement age another year.
, the early retirement date a year and a half.

Raise taxes on the rich a couple of percent. It doesn't trickle down anyway.

Lower the medicare age a year, and then another year every 3 years. Allow everyone to negotiate the price of prescription drugs.
Single payer would be good, but I doubt it would ever happen.
Stop gerrymandering.

Happiness will ensue.

Lawyerliz said...

Yoo hooooo

EngineerJim said...

>Lower the medicare age a year, and then another year every 3 years.

I don't think "Medicare for all" means that it would be like the existing Medicare. For one thing it would be 100% gov't paid versus 80/20 the way Medicare is now. Also, I don't think anyone has said what the taxes and premiums would be.

Encinitas Undercover said...

That debt-to-the-penny figure is temporarily understated and declining because of Treasury maneuvers to get around the debt ceiling. As soon as the debt ceiling is lifted, the official number will spike up.

EngineerJim said...

>As soon as the debt ceiling is lifted, the official number will spike up.

You mean these numbers are phony, HCN ?

Lawyerliz said...

Ah, I wondered about that. Thanks.

EngineerJim said...

Interesting that the debt is quoted to the nearest penny but the accuracy is probably only know to the nearest trillion.

EngineerJim said...

>Ah, I wondered about that.

I think "Medicare for all" is mostly just a slogan at this point.

dodahman said...

Yes Jim, I think you are correct, like the 'tax plan'?

dodahman said...

The debt to the penny reminds me of an old story about weighing the king, where by stones and then pebbles and then finally sand was used to balance the king perfectly.

Next, they guessed the weight of the stones and pebbles and sand...

Balanced precision....

Cinco-X said...

Stop with that!!! You're already retired, and I just found out that I have to wait till after I'm 66...

Lawyerliz said...

Well sorta,but not exactly

Lawyerliz said...

Why I just added one year for now.

Walt Tucker said...

Now that Trump has fired Comey, the Trump administration is now in full cover up mode!!

Mike said...

every article you read about what age to take SS benefits always seem to suggest that you should wait as long as possible to start (because the monthly payment increases 8% for every year you wait)..but they never take into consideration the money foregone by waiting longer. By my calcs...break-even is about 80 years old (i.e. if you live beyond 80..you're better off waiting until 69 to get the max benefit..otherwise you are better off taking it early)...

Mike said...

re Comey...what took you so long DT??

Rob Dawg said...

Flynn lies to Pence, gets fired.
Comey lies to Senate, gets fired.
Bureaucracy in D.C. Is flummoxed. You can get fired for lying?

Mike said...

I lost a lot of respect for T Cruz during the campaign..but watching him take apart what's her name (AG that got fired for refusing to implement Trumps EO) yesterday was a thing of beauty..

Rob Dawg said...

I love the lamescream misleadia. Trump is not reappointing theee EPA advisors. The MSM is trying to say they were fired or purged or something.

Mike said...

Firing Comey should have been the first thing Trump did when he took office. Instead..he tried to be fair and look "nonpartisan"..and it bit him in the arse

Rob Dawg said...

Comey should have resigned when DOJ didn't prosecute. He made his bed.

Mike said...

10 new Federal judges nominated though (which means confirmed..thank you Harry Reid!!)...so things are getting better!!

Lawyerliz said...

Comey fired.

Lawyerliz said...

Agree.

Lawyerliz said...

Didn't persecute who, Hillary.or Trump? He should have fired him before the Russia thing got started in immvestigation.

Lawyerliz said...

Oh, I see you all know already.

Mike said...

Comey should have resigned when DOJ didn't prosecute.

wasn't that his recommendation??

He seems to have missed his first year law class where they learned ignorance of the law is not an excuse (ht T Cruz)

Rob Dawg said...

In HRC's case the security training and rules she signed state in no uncertain terms that there is no excuse. None. If you expose classified information that's it no defense.

Mike said...

Russia thing got started in immvestigation.

yeah that Russia "thing"..remind me again what the charge against Trump is again?? Clapper (Obama's DNI) reiterated said yesterday they have absolutely no evidence Trump had any connection to whatever Russia was doing during the last election..oh and by the way..Russia has been trying to influence elections here for as long as most of us have been alive.

Rob Dawg said...

In 2018 if the Rs take but 14 of the 33 seats up in the Senate they will have 60.

Lawyerliz said...

He borrowed money from them.

Lawyerliz said...

Yeah,.but it's not gonna happen. A bet?

Mike said...

60 would be nice..but if they want to go "full nuclear"..they could vote to just make all votes simple majority (like the House)...

Rob Dawg said...

I've seen what supermajorities did to California. Nothing good.

Mike said...

He borrowed money from them.

that's it?? that is your big concern??

I don't know if he did or not..but what if his company borrowed money from a Japanese bank..would that be a problem?? How about China?? France?? Saudi Arabia?? What countries banks are allowed and what not..

and doesn't all the leverage a bank have against you exist in the application/approval process. Once they've given you the money...the power shifts to the borrower (whether to repay or not)..

EngineerJim said...

Dems are trying to make the Russian thing (whatever that is) into Watergate version II. Comey firing is the "Saturday night massacre" analog.

Lawyerliz said...

Up another 100$.

Rob Dawg said...

$100? Looks like the early bird special at Golden Corral tonight?

Mike said...

refresh the page a couple times..the algorithm rewards that.. ;<)

Lawyerliz said...

100 a day is 36,500. Ok.

Mike said...

getting back to the topic at hand ($20 trillion in debt)..my vote would be to continue borrowing as much as we can...as fast as we can..until our creditors turn off the spigot...then follow Argentina's lead..

what was the old saying.."what can't be repaid..won't be repaid"

Rob Dawg said...

$337,102 per annum. What shall I do with all?

Lawyerliz said...

One really good Mormon idea is have 2 years worth of food stored as way.

Lawyerliz said...

Have fun!

Mike said...

..which isn't easy when you have five wives to feed

Rob Dawg said...

One more tomato plant and I may end up with zero wives.

Mike said...

end up with zero wives.

no worries..the robots are coming... :)

Rob Dawg said...

The mayor of Los Angeles has declared a state of emergency in the Owens Valley 200 miles away.

Mike said...

ha ha ha ha...

Lawyerliz said...

Hehehehe

Lawyerliz said...

Why?

Mike said...

Russians!!

Lawyerliz said...

In Owens valley?

Mike said...

they borrowed money!! call the FBI!!

Lawyerliz said...

Oops!

Lawyerliz said...

Nitey nite, all.

Rob Dawg said...

A century ago Los Angeles killed a bunch of Owens Valley farmers and stole their land and water. A dozen years ago they started addressing a fraction of the devastation they caused. Now they have a billion dollars invested in dust suppression and soil control that will get wiped out next month when the Sierra snow melts.

TJandTheBear said...

"I've seen what supermajorities did to California. Nothing good."

Yeah, but could be worse, could be Illinois. ;-)

TJandTheBear said...

Liz,

Bandaids don't fix gaping head wounds. About the only thing that can save US finances is perhaps Denninger's health plan.

Personally, I'm all for "Medicare for Everyone". With so many vested interests, sometimes you have to blow something up to fix it, and MfE would accomplish that in extremely short order.

Lawyerliz said...

Wakies, wakies, East coasters.
Taxes on sugar artificial sweetener, soda, white flour to pay for health care. Coggins and booze already highly taxed. Just call me Nanny.

Lawyerliz said...

Coggins tsxed. If anyone wants to raise them some more, ok.

Lawyerliz said...

Ciggies, spell check, ciggies.

Lawyerliz said...

Medicare plus Blue Cross/shield has been very satisfactory.

Cinco-X said...

Ya... That loser wouldn't prosecute HRC for perjury, so what was he good for?

Cinco-X said...

I guess a lot of jobs are in danger in DC

Cinco-X said...

Exactly

Cinco-X said...

Yowza

LBD said...

Good Morning!

Give me Liberty or give me Debt!

Glad Comey got canned. HRC should have had her day in court.

Health care should have been a States right not the FED.

Lawyerliz said...

The roblemishes is the whole idea of insurance as applied to health care. A simple sick person with a pre existing condition is not the same as a house burning down. Did more chopping and wI'll shortly plant more butterfly attracting plants. After I catch my breath. Gardening counts as exercise, certainly with me!!!

Lawyerliz said...

Problem is . .

Rob Dawg said...

It hasn't been noticed yet but Trump is doing a great job at restoring State's Rights. This is part of why D.C. is so against him. They stole those powers fair and square.

Innocuous little new post of a time warp house down the street.

Lawyerliz said...

Boston Fed guy say the present unemployment rate is to low and they may have to raise rates. This is pure evil, I think.

Cinco-X said...

Glad we don't do that

Cinco-X said...

Yup... As much as I detest them, we need a withing Dimocrat party

Cinco-X said...

DYAC... Working

Cinco-X said...

Stick with that fish place to which you took us...