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View Diary: Conservative Exceptionalism (184 comments)

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  •  Demand may shrink in the short term (0+ / 0-)

    I mostly get my news from NPR radio, so understand that caveat.  The report I heard discussed the short-term effects of plunging over the "fiscal cliff" as a loss of about 700,000 jobs and a short recession, but after that, the economy would be on firmer ground than before.  Consider it a correction.  This story implies that there would only be a positive effect of the fiscal cliff.  I don't believe that to be true.

    If we are talking only about raising taxes on the upper range of incomes, then I think the deleterious consequences would be conserably less, and the tax policy would tend to promote less concentration of wealth, which is a good thing.  I am not convinced, however, that it would be a magic bullet that will stimulate demand and reduce the deficit all at once.

    I do not feel obligated to believe that the same God who has endowed us with sense, reason, and intellect has intended us to forgo their use -- Galileo Galilei

    by ccyd on Sun Nov 11, 2012 at 06:33:04 AM PST

    •  You Need to Purge the Deficit Reduction Obsession (3+ / 0-)
      Recommended by:
      MrWebster, offgrid, Laconic Lib

      If  you take those revenues and pay down the debt, NOTHING WILL HAPPEN.

      However, if you take every dollar and reinvest it in infrastructure and jobs, you will get a sizable ROI through increased consumer demand and additional tax revenue.

      Fix the economy first, and the debt/deficit will resolve itself.

      •  The deficit is mostly a revenue problem (0+ / 0-)

        It is not a spending problem, and the way to get rid of it is with a healthy economy, which we don't have -- yet.  I have never been a proponent of deficit reduction at the expense of stimulating the economy.  But as I said above, raising taxes on the wealthiest Americans will not solve the problem.  Read my last paragraph again.  There needs to be a comprehensive policy with tax increases on the people who can afford it most being a part, but not the only part.

        I do not feel obligated to believe that the same God who has endowed us with sense, reason, and intellect has intended us to forgo their use -- Galileo Galilei

        by ccyd on Mon Nov 12, 2012 at 05:12:16 AM PST

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