Wednesday, July 27, 2011

The Cause of the huge deficit

Read here what Dean Baker, Co-Director of the Center for Economic and Policy Research, has to say about the deficit. (Namely that the hugeness is largely the result of the recession, not particularly any spending or tax cuts or programs.)


Nevertheless, if we ever get our economy back on track (highly unlikely when we start massively cutting programs that create jobs), the Bush Tax Cuts and unpaid wars and the drug program for Big Pharma will still leave us with trillions to pay back.

Can even the business community or the tiny group of at least partially sane Republicans in Congress rein in the Tea Screamers? I don't think so. Frankenstein's monster is out of control and turning on its creator.

No matter how you slice it, the current budget-cutting mania in Congress is absurd and counterproductive. Since our democracy is incapable of providing feedback correction in time, all we can do is sit back and let the farce play itself out.

3 comments:

  1. Wait, before you said it was the Bush tax cuts (extended by Obama) that were one of the main drivers of the current deficit. Now you say that it's something else. What's next?

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  2. Glad to see that Baker agrees with me.

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  3. I was thinking the same thing. Fair enough.

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