Trump's broken economic promises

Econ 101.

 

You don't understand. The tax cuts cannot help the 50% of workers in the lower brackets because they do not pay Federal income tax(owe it). The tax cut percentage was across all tax brackets. The top 10% in the highest tax bracket, saved the same percent as the other brackets. It's relative to your taxable ordinary income. Whether you have taxable income of $100,000 or 1 million dollars the cut is the same. Those owing no income tax to begin with won't benefit from tax cuts. But they likely benefit from credits that those in higher brackets don't qualify for.

 

That's exactly what YOU CONservatives were during Obama's terms, remember? So you really mean you want to be like yourselves!

February 13, 2009
RUSH: I Hope the Stimulus Package Fails
I hope it prolongs the recession.

 

Are you trying to play dumb, Elizabeth Warren has plans for everything, how could you not know that?????

https://elizabethwarren.com/plans
Health Care Is A Basic Human Right

Investing in Rural America

Accelerating the Transition to Clean Energy

Valuing the Work of Women of Color

Expanding Social Security

LGBTQ+ Rights

Fighting for an Accessible & Inclusive America

Promoting Competitive Markets

Protecting Our Communities from Gun Violence

Holding Wall Street Accountable

Honoring and Empowering Tribal Nations and Indigenous Peoples

Tackling the Climate Crisis Head On

Empowering Workers Through Accountable Capitalism

Protecting Our Public Lands

How We Can Break Up Big Tech

End Wall Street's Stranglehold on Our Economy

A New Approach to Trade

Reduce Corporate Influence at the Pentagon

The Coming Economic Crash — And How to Stop It

Leveling the Playing Field for Entrepreneurs of Color

Improving Our Military Housing

Affordable Higher Education for All

End Washington Corruption

Our Military Can Help Lead The Fight In Combating Climate Change

Universal Child Care

Safe and Affordable Housing

Foreign Policy

Fighting for Service Members, Veterans, and Military Families

Protect A Woman's Right to Choose

A New Farm Economy

Leveling the Playing Field for America’s Family Farmers

A Fair and Welcoming Immigration System

Strengthening Our Democracy

Rebuild the State Department

Get Rid of the Electoral College

Ultra-Millionaire Tax

Real Corporate Profits Tax

Defend & Create American Jobs

End Private Prisons

Leading in Green Manufacturing

Comprehensive Criminal Justice Reform

Ending the Opioid Crisis

Comprehensive Debt Relief to Puerto Rico

100% Clean Energy for America

 

But income tax is NOT the only Federal tax, and 2/3 of WAGE EARNERS pay as much or more in payroll taxes on their "ordinary income" than income taxes. OTOH, capital gains tycoons pay NO payroll taxes

 

He drained it right into his administration.

 

As long as you don't count the $360 billion they borrowed from payroll taxes.

 

You can't be serious!
The GOP controlled the House and Senate Tramp's first two years and STILL control the Senate.

 

To control the legislative branch which of course includes the budget 60 votes are needed in the Senate. To get what they want they have to agree to the Democrats spending increases.

Seriously why do so many people not understand how the government works ?? The fact that 60 Senate votes are needed to get legislation passed is American Government 101.

 

What's the source for that ??

 

I'm counting the OMB historical tables.

 

The topic is the deficit and fiscal policy. They don't even bring it up.

 

And added a few cesspools for good measure.

 

So I certainly agree with you that despite Trump's claims what actually occurred was a tax cut for the rich at the cost of ballooning the deficit and at apparent,y no long term boost to the economy.

 

Nope. And no reputable group believes that it will be even close to revenue neutral in the first ten years.

" The conservative-leaning Tax Foundation had a rosier outlook, but also predicted the plan would increase the deficit despite the benefits of a stronger economy. The foundation projected the Trump tax plan would lead to a loss of revenue of $2.6 trillion to $3.9 trillion after accounting for increased economic growth."

 

And increasing tax rates will lead to greater deficits if Democrats continue spending like drunk sailors.

 

Not true. Reconciliation bills can be passed with only 50 votes on SPENDING, revenue, and the Fed Debt Limit.

Seriously why do so many people who not understand how the government works, pretend to know more than those that do??

 

Way to move the goalposts! What YOU actually said was not so limiting:

And she addressed all of them, for example: A New Approach to Trade

 

When Obama left office there were more working than ever in the entire history of the USA.

 

His highest QUARTER was only 3.5% And he has never broken 3% GDP for an entire fiscal year.

 

Tramp was NOT president in 2016. Your own chart showed debt as a % of GDP declining Obama's last year 2016 and increasing Tramp's first 2017.

 

Hogwash!
https://www.bls.gov/webapps/legacy/cpsatab9.htm
In 2013 FT jobs increased from 115,653,000 to 117,394,000 and PT jobs went from 27,546,000 to 27,418,000.
That's right PT jobs DECREASED in 2013 while FT jobs INCREASED.
Please post your source for that hogwash so we can learn what source to never trust!

 

No it wasn't Clinton, lowering the lending standards was done by BUSH! Under Clinton only QUALIFIED borrowers with GOOD CREDIT could get no downpayment loans up to 97% of the value of the property, BUSH made no downpayment loans available to borrowers with BAD CREDIT for 10% MORE than the property was worth with his ADDI, American Dream Downpayment Initiative in Dec 2003.

 

It was the GREAT Bush Recession!

 

The housing bubble and financial crisis are actually two different things although the collapse of the housing bubble resulted in the financial crisis. The housing bubble was caused by the lowering of lending standards due to the HUD requirement that Fannie and Freddie make a set percentage of loans to low income borrowers. This policy was initiated by Bill Clinton and was based on an interpretation of the Community Reinvestment Act. At the end of Clinton's term that percentage was 50%. This was increased to 55% by the Bush administration. The lowering of the lending standards was used by unscrupulous mortgage lending firms like Countrywide and New Century to make many other high risk loans. Adding to the housing bubble was the easy money policy of the Fed which made loans easier to afford due to low interest rates. The housing bubble suddenly burst in 2008. This was similar to the dot.com bubble which burst in 2001 and recovered from by 2003 but why was the financial industry so terribly affected this time.


The financial crisis triggered by the housing bubble collapse was the result of a combination of financial and banking regulations going back to 1936 (See the list below). Mortgage backed securities have been around for years before the 00's. They are securities formed by conglomerating home mortgages and are a way for investors to earn a return through the housing market. They have historically been very safe investments. The HUD housing policies however resulted in a portion of the MBS's created in the 90's and 00's to consist of the subprime and other low standard loans. The Basel rules were based on the assumption that securities consisting of home mortgages were of very low risk. Therefore the reserve requirements for MBS's were set at a very low rate of 5%. This meant that for every $50K of MBS's that a commercial or investment bank had it could make loans totaling $1M. Since banks make money from loans they would use the investment vehicles with the lowest reserve requirement. And very many of them did. They bought AAA rated MBS's (the ratings were determined by the National Ratings Agencies - Fitch, Moodys, and Standard and Poors). This was required by gov regulation. But the ratings agencies were not doing due diligence on the make up of the MBS' which was unknown to the banks involved who trusted the ratings and Basel guidelines. Collapse of the housing bubble caused foreclosures in the subprime mortgages especially. This created fear and uncertainty in the value of the MBS's even though they were still paying ~ 90% of their returns. The market price dropped (in some cases a price could not be determined because no one was interested in buying). This is where the mark to market rule came in resulting large paper and consequently the banks reserves falling below the already low 5%. The bailout from the gov started out as TARP which was passed to buy up all these MBS's which had now large paper losses due to mark to market. It was quickly changed however to give money directly to the banks so that they could bring their reserves up to the 5% level. Bear Stearns was bailed out but Lehman was allowed to fail. This resulted in uncertainty and the credit markets froze (none of the banks wanted to lend to other banks who might not be bailed out). Some commercial banks like WaMu also had MBS's in reserve and ended up being taken over.



The analysis of what happened is contained in the book by Friedman and Kraus – “Engineering the Financial Crisis” – 2011. As can be seen these rules were issued over the years with no analysis on how they might conspire together to set up a catastrophic house of cards situation due to the homogenization of asset mix held by many of these investment houses. Collapse of the housing bubble which affected these assets including MBS’s (whose contained loans were still paying at ~ 80%) then lost value due to the market price dropping way below value triggering large paper losses due to mark to market accounting rules. This reduced the capital and lending capacity of the banks due to Basel I and the Recourse Rule (an adoption in the U.S. of part of what later became Basel II), which specify those capital requirements. The conflation of all of this resulted in the financial (really the banking) crisis. The authors also show that the repeal of Glass Steagal had nothing to do with the financial crisis. Glass Steagal prevented the mixing of private deposits with investments and that was not a factor. Here are the set of regulations:




1. SEC Regulations from 1936 requiring mandated minimum ratings for a growing number of institutional investments.


2. SEC decision in 1975 to confer NRSRO on the big three ratings agencies.


3. Basel 1 from 1978 which established favorable risk weighting for mortgages and GSE issued MBS’s.


4. Mark to market accounting established by FAS 115 in 1993 and refined by FAS 157 in 2006.


5. HUD targets for mortgages to low-income families in the late 1990’s resulting in reduction of down payment requirements for the GSE’s.


6. Recourse Rule issued by the FED, FDIC, and Office of the Comptroller of the Currency, and the Office of Thrift Supervision.






Here are some excerpts from an editorial from the WSJ:

http://online.wsj.com/article/SB10001424052970204468004577166723093578272.html


Google – The Meltdown Remains a Whodunit