Sunday, April 24, 2011

How to know if the deficit pundits are about deficits or other things

Let's take a real look at this one. If you want to close the federal deficit please don't warn about Spain to Greece. They can't print money, the Federal Reserve can. Yes, it may cause inflation and it may be a bad idea not no we will never default because of lack of funds. We print the stuff remember. That said, we may default if the crazy people who tell you about Spain get control of the mess. Better question, are those people looking to cut the entire budget or just parts they don't like. For example, and this is just an example, say the EPA was 1% and the military was 99% and we had to cut 1% do these people cut from the EPA? Do they cut just from the EPA? Really folks, if you want to cut the deficit maybe you should cut from the areas where we spend the money. Hmmmm. Cutting can be very expensive. For example, we live longer in a very real way because of improvements in public health, water, sewers, etc. We also live longer because of medical research. Cutting NIH won't save money over 10 year it will cost us money. So, if you want to know who wants to cut the deficit and who wants to cut programs they don't like, follow the money, the real money, the place we spend money.

Thursday, April 14, 2011

cry wolf

Democrats need to have some integrity too. Sticking a rider on the budget slashing that takes the wolf off of the endangered list to get one of their own re-elected is just wrong. this kind of cynical politics shows a lack of common sense as well. How do these people think they can point at Republicans and complain. Get a backbone and fight when something is right. Don't add it to an totally unrelated bill.

Monday, April 11, 2011

On state and local deficits

What if the Democrats wanted to make states more efficient, leaner and really wanted to cut waste. What if Republicans really wanted to create jobs and not make the economy worse so that unemployment would go down and it would not help them in the next election. Then, perhaps, they would agree to have the federal government loan some real money to the states to tide them over this continuing high unemployment, avoid layoffs and allow states a bit of a breather. What if the federal government were to be a lender to the states at a minimal interest rate and take back the states promissory note. No increase in the deficit. What if the state did not need to repay the money until unemployment fell below some reasonable number, perhaps 5 percent or 4 percent. That would allow the state to have income from sales and income taxes from those people who had jobs, would be able to repay the loan easily and would not have to repay it until then. What if there were an incentive to make state government more efficient as the stick with the carrot to make the Republicans happier. Would all that work?