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When the spigot of bailout money opens, few in Congress point where this money is coming from. Everyone knows it’s borrowed. However, virtually no one whomsoever brings up the subject of paying off the debt they’re creating.
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The famous economist John Maynard Keynes proposed a scheme whereby government would “stimulate” the economy with deficit spending in bad times. Such money would have to come from borrowing money or tapping rainy-day reserves. His counter-balance is to raise taxes in the good times to pay off the government loans and/or rebuild the rainy-day fund. When the government wants to spend money, the members of Congress all become Keynesians. BUT . . . the Keynes theory of raising taxes to pay off the debt has always been totally and completely ignored. |
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The total U.S. federal debt has passed the $10 trillion mark. That’s |
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The latest “stimulus” proposal is to give billions and billions to General Motors. Speaker Pelosi said GM would have to show what it would do with that money. She said, “Until they show us a plan, we can’t show them the money.” |
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To Speaker of the House Pelosi, and all the rest of the members of |
Tags: general motors, Keynes, Pelosi
Obama is surrounding himself with many of the same people that were in the administration that led the nation to the best eight years for the economy in my lifetime. If he keeps his word about cutting waste in the federal budget that “bleeds billions” and raising taxes on those making over $250,000 per year, he will have a surplus like Clinton did when he leaves office in eight years.
I am very disappointed that Obama is planning to let the Bush tax plan go to its expiration at the end of 2010. Raising taxes on the high income earners would reduce the deficit, which would have a more positive effect on the economic recovery than depending on a “trickle down” benefit.
I believe that his decision to do that is purely political to protect himself in the event that the economy doesn’t turn around as quickly as the electorate would like. I wish that he regarded the future of the American economy as highly as he does his political career, but I have gotten used to the fact that politicians put themselves first and operate accordingly.