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View Diary: Senate Democrats to produce budget seeking new revenue without threat of filibuster (80 comments)

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  •  Still austerity... (0+ / 0-)

    Just increasing taxes whether on the wealthy or others is still austerity. To be economically neutral whatever taxes are raised on the wealthy have to be offset by proportionally more spending on something more stimulative.  So, if taxing the wealthy is $.39 of stimulus on the dollar and unemployment is $1.52 then for every dollar of taxes on the wealthy unemployment should be increased by 1/3 whatever is raised by increasing taxes otherwise it is still austerity.

    I am by no means for lowering taxes on the wealthy.  But, saying just raising taxes without increasing spending is going to help the economy is false. It will hurt the economy.  Perhaps not as badly as other choices, but it will still hurt.  There are 25 million people underemployed. I don't think we need to be making that worse.  So, my preference if we can't get stimulus is to do nothing.

    Also, paying off the national debt is a BAD THING.  The national debt is nothing but an accounting of private sector wealth.  Every period of government surplus in the history of the nation has been followed by a Depression with the Clinton being the only exception. "The Clinton surplus was followed by the Bush recession, a speculative euphoria, and then the collapse in which we now find ourselves"

    Maybe it is coincidental.  But, I doubt it.  There are only two places to get the surplus to pay the national debt.  The private sector has to stop saving or via a trade surplus.  Austerity drives the private sector to save, so it won't come from the private sector.   Driving the country into a depression via austerity, so no one has any money to buy foreign goods and wages are driven down to nothing might reduce imports and increase exports enough to get the needed surplus.  But, you have to figure 50% unemployment.  

    I have absolutely no interest in "paying off" the national debt.  I would prefer that is be changed from interest bearing IOUs to non-interest bearing IOUs, also known as dollars.

    I will say it again.  Anyone trying to reduce the deficit by raising taxes and lowering spending is advocating for higher unemployment and the suffering that comes from it.  Austerity is like bleeding a patient that already has several stab wounds.

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