Republicans and the debt ceiling
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Anonymous
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This Forbes piece was before the pandemic
Trump’s Wasteful Tax Cuts Lead To Continued Trillion Dollar Deficits In Expanding Economy https://www.forbes.com/sites/christianweller/2020/01/29/trumps-wasteful-tax-cuts-lead-to-continued-trillion-dollar-deficits-in-expanding-economy/?sh=76f6185266c4 “A temporarily larger deficit may be worth it, especially in a world of very low interest rates, if it translates into faster economic growth. But that is not what has happened. Economic growth increased briefly in early 2018 but quickly fell back to or even below the modest levels that persisted before the 2017 tax cuts (see figure below). Not all deficits are bad, but the ones from the supply-side tax cuts have proven to be.” |
Anonymous
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Forbes, that liberal rag.
/s |
Anonymous
Compare that to the pay gains under Biden. Hands diown, Biden wins. the reason they were up under Trump has more to do with liberal cities upping the local minimum wage. |
Anonymous
Oh my. Real wages are going DOWN under Biden. Heard of inflation at 7-9%? |
Anonymous
Did you live through the trump years? The government was give out so much money that people stayed home vs worked. The GDP shrank by almost 4% in his final year in office. Any way you measure it trump was a disaster. |
Anonymous
In real GDP which accounts for inflation, every Biden quarter is higher than any Trump quarter. https://fred.stlouisfed.org/graph/?g=8eiT |
Anonymous
| McCarthy is saying he won’t support a clean debt limit hike. Biden needs to keep explaining why that’s the way to go. But crickets so far |
Anonymous
You know who it wasnt a massive success for? Military and civilians who PCS. They now get taxed on everything the government gives them in order to move. HHG storage so you can go overseas- taxed. Meals and hotels while you look for housing in a different country- taxed. Bezos 2nd yacht- not taxed. 
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Anonymous
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House Republicans are preparing to hold world economy hostage for political gain. Backed by Speaker McCarthy, the emboldened Far-Right "Freedom Caucus" plan to hold up raising the Debt Ceiling - which they raised 3 times under Trump - unless demands are met.
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Anonymous
What are their demands? |
Anonymous
20% cut to discretionary spending, but excluding defense from any cuts. That means closer to 50% cuts everywhere else to get to their 20% threshold which will never happen. |
Anonymous
Because the money has already been legally appropriated and it is unconstitutional for the US to not pay its debts. Isn't anyone else tired of the GOP playing these games every time they control Congress with a Democratic President in office? Why would a political party's goal be to create an economic crisis and throw our country into a recession, unless they are being supported by a coalition of the ultrawealthy, one-issue cultural warriors and our foreign adversaries? |
Anonymous
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You guys are overreacting. Mitch McConnell wants bigger government, as it makes it easier to get money to his donors.
John McCain managed to get them to get rid of earmarks, but I think those are back now. There might be some push for a shutdown. Ideally they would just pass small debt limit increases for a month or so, with some budget cuts tacked on. But that's not what McConnell and the corporate Republicans want, so we'll just have McCarthy make a show of negotiating hard. |
Anonymous
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This massive debt, combined with inflation, is a huge problem.
High inflation produces higher interest rates. I remember when the government was paying 6% on debt. If they did that now, that would add $2 trillion dollars a year in debt payments. Instead of trying to deal with this, all we get are partisan talking points. |
Anonymous
How quickly you forgot about the crisis in 2008. Our economy has global repercussions. The “massive debt” shrug. Not sure it matters because the economy is huge. I always chuckle when people use a household budget analogy, so silly! |