Tag: Federal Deficit

Obama: “Die Quickly”

Cross posted from The Stars Hollow Gazette

We are doomed and so are our future generations.

President Obama at today’s (7/11) press conference:

As for Social Security, which he acknowledged is not the source of any deficit problems, he basically said that, as long as we’re doing a big deal, we might as well throw that in. “The reason to include that in this package is, if you’re going to take a bunch of tough votes, you might as well do it now,” Obama said.

Obama Offered To Raise Medicare Eligibility Age As Part Of Grand Debt Deal

by Sam Stein

According to five separate sources with knowledge of negotiations — including both Republicans and Democrats — the president offered an increase in the eligibility age for Medicare, from 65 to 67, in exchange for Republican movement on increasing tax revenues.

The proposal, as discussed, would not go into effect immediately, but rather would be implemented down the road (likely in 2013). The age at which people would be eligible for Medicare benefits would be raised incrementally, not in one fell swoop.


A proposal to raise the eligibility age for Medicare — which was part of a budget plan put forth by Sens. Joseph Lieberman (I-Conn) and Tom Coburn (R-Okla.) — would face steep opposition from within the Democratic Party. The amount of money it would save is also relatively small, as the vast majority of Medicare funding is spent on more elderly populations. The Congressional Budget Office has estimated that if the Medicare eligibility age was increased from 65 to 67, the federal government would save $124.8 billion between 2014 and 2021.

Paul Krugman, Conscience of a Liberal

That’s a truly cruel idea; as it happens, I know several people who are hanging on, postponing needed medical care, hoping that they can make it to 65 before something terrible happens. And if I know such people in my fairly sheltered social circles, just imagine how widespread such stories must be.

But beyond that, think about what it means to move people out of Medicare into private insurance, if they can get it.

Medicare has its problems – but all the evidence says that it is substantially more cost-effective than private insurance. Partly this is because it has lower administrative costs; partly it’s because Medicare is able to use its market power to negotiate lower prices. And the international evidence is overwhelming: single-payer systems are much cheaper than systems centered on private insurance.

So think of this as a national interest thing rather than a budget thing: Lieberman is proposing that we move a substantial number of older Americans into a worse, more expensive health care system. Why would you want to do such a thing, as opposed to raising enough additional revenue to keep them on Medicare?

Where is the outrage?

Profiles in Failure

Cross posted from The Stars Hollow Gazette

Continuing economic policies  the have failed is flat out stupid. Proposing to not only continue with those policies but to reinforce them by making them worse is economic and political suicide. It is the path that the Obama administration and Congress have taken us down by renewing the Bush Tax Cuts until December 2012. Some of the GOP candidates would like to cut taxes even further, so much so that it would cripple the government and widen the socio-economic gap of the haves and have-nots.

June 7th was the tenth anniversary of the Bush tax cuts that were enacted on the promise as a  necessary economic stimulus that would boost job creation and a stalled economy by the Bush regime who said the “deficits didn’t matter”. Bush promised that result would be that the Federal debt would be paid in 10 years that was in 2001. At the end of 2008, the national to over $10 trillion dollars, 69% of the GDP and the highest it had been since 1955.

Think Progress compiled a concise video with graphics and music that demonstrates how the Bush tax cuts drove up the deficit and will continue to make matters worse over the next 18 months.

Yet, we still have the right wing pundits and GOP candidates for president repeating the with most of the talking heads nodding in acquiescence. Lawrence O’Donnell was the exception last night comparing the ignorance of Sarah Palin to the out right lies about tax cuts by GOP presidential hopeful, ex-Gov Tim Pawlenty. If elected, Pawlenty would propose cutting the business tax rate and wipe out the capital gains tax, interest income tax, dividend tax and the estate tax.

It’s estimated that Pawlenty’s proposals would triple the size of the Bush tax cut costing another $7.8 trillion over the $2.5 trillion the current extension is costing. Meanwhile, the other GOP contender, ex-Gov. Mitt Romney, follows the Bush/Cheney economic theory that deficits don’t matter with his endorsing a “federal spending at 20 percent or less of the GDP and finally, finally balance the budget” without mentioning the other side of the equation, revenue.

With Obama caving on just about everything, his word that he will not extend the Bush tax cuts again doesn’t hold much water. His economic policies and thus his re-election is in the inept hands of a Wall St. shill, Treasury Secretary Timothy Geithner and his Chief of Staff, former Morgan Stanley bank executive, Bill Daley. If Ben Bernanke expressed less than a rosy economic outlook, it understandable that the markets worldwide are taking a tumble.

Why is it “Deficits don’t matter” — whenever THEY are in Charge?

Let me jog your memory, about one of the more memorable things the Former VP said to a ‘fiscally responsible’ Treasury Secretary — right before he fired him

Former Treasury Secretary Paul O’Neill was told “deficits don’t matter” when he warned of a looming fiscal crisis.



O’Neill said he tried to warn Vice President Dick Cheney that growing budget deficits-expected to top $500 billion this fiscal year alone — posed a threat to the economy. Cheney cut him off. “You know, Paul, Reagan proved deficits don’t matter,” he said, according to excerpts. Cheney continued: “We won the midterms (congressional elections). This is our due.” A month later, Cheney told the Treasury secretary he was fired.

Source: Adam Entous, Reuters, on AOL News Jan 11, 2004

Maybe “deficits don’t really matter” — whenever the Gophers have the National “Credit Card” in THEIR Pockets — Then it’s Party time, for their friends and buddies in the corporate boardrooms?

Otherwise — it’s “evict the lazy bastards”.  

Cut the Funds for something — NOW!