Rep.Kevin Brady finally admits tax cuts not paying for themselves!

Tariffs are an inspiration to invite retaliatory tariffs and other trade restrictions on goods and services we produce. We're particularly vulnerable because a trading system that respects intellectual property is essential to our high tech, high wage economy. IOW, we could really screw ourselves with starting a trade war featuring high tariffs.

 

Hilarious. Thanks for catching it. I hate it when I miss good ones like that.

 

I did. I lived through it 94 was an off year election and the corruption from dan the furniture man to the house check kiting scandal along with Gingrich's contract with America put the fork in the Dems.

 

One way to manage debt is inflating it away. We don't want to let it get away from us, however. The fewer things we do to legislate away debt, the better.

You keep saying the world is coughing up a fur ball on our debt. It ain't so.

I suspect we'll repeat running big deficits.

We're not near that point yet.

I'd be more concerned about the impact of climate change.

 

We just don't agree on what won the House for the Republicans.

 

But Dirty Donald submits the budget!!

 

1) Wheel barrels full of cash - perhaps a Trillion Dollar note ? This is the same as defacto default. Keep in mind as well that with inflation comes much higher interest rates so that solution does not work.

2) Not so much coughing up a fur ball but - they have quite a bit and competition is coming

3/4) Deficit projections for future are huge - and the invisible hand is already striking back - as stated previously "inverted yield curve". If you need more explanation just ask.

 

My brother is making about $70k and he can retire with 3/4 at 30 years and 100% at 35 years. Administration makes a lot more money. Most over $100k.

Texas teachers can opt out of social security for Teachers Retirement System. It pays much better and is backed by gold in the federal reserve and soon to be moved to Texas.

 

I suggest that you right wingers read my post on how YOUR STATES miss spend the federal dollars they get to feed the poor and indigent instead squandering it on right wing fake religious leaders pet projects and causes.

 

I think I was the first person on the forum to talk about inverted yield curves.

Anyway, there are ways to deal with debt short of defaulting. Reasonably mild inflation is one way, as I pointed out.

 

It takes a long time to get to $70k. Starting salaries in particular are too low to attract qualified staff who not only understand technology but who can teach it. Skilled trades, computer science, mathematics--the very skills our young people need--are taught poorly in K-12.

We're talking about the supply-and-demand for qualified staff, not the notion of a "just wage" from the Middle Ages. If Texas wants better schools, it must increase teacher pay, at least for some types of teaching jobs.

 

An example of this is the massive debt from WWII. At the end of the war the debt was well over 100% of GDP and we still carry that debt. Inflation however has made it a non issue

 

Exactly.

 

I agree that this can work over time. The question is one of relative rates. Can we inflate away the debt at a rate faster than it is growing ?

Right now the debt is growing faster. If we run 1 Trillion dollar deficits and the debt is 20 Trillion that 5% . Inflation has to run at 5% just to get to par.

Historically - over the last 500 years - inflationary years vs deflationary years have been a little better than 50/50 in favor of inflationary years.

Over the last 70 years we have bucked that trend - with almost no deflationary years. God forbid you get "deflation" - and from a historical perspective we seem to be way overdue.

Imagine a scenario where you get a recession - with revenues decreasing - in combination with deflation - in a rising interest rate environment - a perfect storm. The problem is that probability of this scenario is actually quite high. This is why I talked about the baby boomers moving in to their low spending years. Decreased demand for goods and services causes deflation. The housing numbers for example are not exactly robust.

 

Sure. We're not close to a tipping point where interest on the debt is even significantly damaging the economy. Our debt problem today is a self-inflicted wound where pols buy our votes with too low taxes for our level of government spending.

Raise taxes and/or cut spending.

Deflation is bad because it raises real interest rates.

Interest rates aren't likely to increase during a recession given the way the Fed operates.

Boomers are spending more than they're earning. Anyway, there's a demand deficit, but it's based on average folks not getting a full share of the national income.

 

the economy has been going gang busters for 2 years. Unemployment as at a near all time low. I would love to see how this is calculated. The debt as a component of the success of the tax cuts doesnt make sense.

If take 200 out of my budget for investment, and then spend 500 more per month... my debt climbing isnt necessarily an indicator that my investment was faulty.

 

Lol.

Right.

 

I agree for the most part with some of your solutions - in particular what you refer to of the demand deficit. In addition - the national income would be higher if we did not allow international corps some obscene tax loopholes which allows income to be funneled out of the country untaxed.

The interest on the debt is roughly 500 Billion on 3.3 Trillion in income = 15%. The idea that an extra 500 Billion in income would not help our economy is flawed. If 5 million people were given 100,000 to spend (instead of paying the interest) this cash would generate a whole lot of economic activity.

 

I'm having difficulty figuring out what point you're making about government debt.

 

No kidding! Have you seen how Biden is KILLING him in the polls; even in States like GEORGIA!!!

 

Quote: Record federal revenues

Wrong!

We had record revenues in the 90’s, highest; 20 percent of GDP, and today’s revenues equates to 17 percent of GDP.

Source; Office of Management and Budget - Receipts as a percent of GDP/Historical Tables

Refute.

 

Biden is the AntiTrump, first and foremost he is LIKABLE. It's one thing to be tough but Trump is this COMPLEAT right bastard. (It's the main reason I call him a Nazi, the Nazis had this cult of "toughness" which was mainly just brutal cruelty, and that's Trump all over)