Re: 4 more trillion in debt and everyone pays more taxes! Washingftin won the public lost!
posted at 1/2/2013 2:52 PM EST
In response to WhatDoYouWantNow's comment:
"I am ok with the rates going up for the top 10% but, with no cuts to spending it will be harnful to our overall economy!"
The Reps could have gotten their cuts if they agreed to help Obama save face by giving him his 250k line in the sand.
Instead they lost that negotiating power by focusing on protecting the well off (250-400k) from tax increases that Bush intended (if he wasn't lying...heh heh).
In response to tvoter's comment:
We are (imho) headed for a recession of gigantic proportions. The middle class will will be crushed and the poor will be decimated; the "rich" which will be mostly federal workers by this point will make it a short it timew longer until washingtons funds dry up as well and they are laid off.
dems will blame repubs and vice versa
Oh, Christ. So build a bunker. You'll create Home Depot jobs.
Before you do I'd be curious to see your economic analyses and regressions that indicate this likelihood, and indicate that sharp spending cuts would prevent this imagined recession.
Well, if government spends only what it takes in, then it will not need to borrow long term debt. This means that government will be at it largest overal contribution to economic activity. Taking on long term debt (i.e. NOT what Keynes stated. Keynes was talking about short-term debt) to pay current expenses devalues impact of government spending, as the money is either created out of thin air, or taken out of the private sector, leading to monetary devaluation and/or inflation.
Isn't that clear, or do you lack an understanding of basic economics?