Are We Doomed: a response to the presidential and speaker of the house addresses

If you listened to the President’s Message and the Speaker of the House, Boehner’s messages the other night and if you have any knowledge of macroeconomics, there is one logical conclusion ~ we’re doomed!

I think both men worked toward compromise but Boehner fell to the pressure of his constituents that demand nothing less than their own ideological demands. The same is true of our president dealing with the strident demands of the right. The problem with those demands is that they are extremely dangerous to the economics of our country.

The mantra of the extreme right has become all too clear: no new taxes on anyone, in fact we need to lower them; a balanced budget, and getting rid of the deficit. They can sound pretty good but they are incompetent ideas.

First, why on earth do they keep refusing to up the taxes of the extremely rich; most of whom have tax lawyers that keep them from paying anything or if they do at a pittance of the rate of others. How can they possibly still buy into supply side economics which has proved not to work for 35 years. It’s is like the chicken who starved to death sitting on an ear of corn. We live in an era of regressive taxes.

A balanced budget also sounds good and is essential in microeconomics. You can’t do it personally unless you’re Donald Trump who could be a declared a country, or if you’re the wealthy who uses others taxes to subsidize their own businesses. Increased spending during recessions or depressions is a proven means by which government can increase the vitality of the country and you have to over spend to do that. Look at the chart below to see how far in debt the country went during the New Deal to bring the country back to economic well being. This is Keynesian or demand side economics and it works.

 chart A

    

  chart B   

  chart C

  

The above graph Chart A, shows where were in terms of national debt when the great depression came in 1929, when the wealth was held by about the same small percentage of people we have now (less that 2%) and how it went up during the New Deal to get the country going economically again.

Charts B and C also help demonstrate what is going on but brings it up to modern times and show administrations influence. [I had a little problem getting these imported.]

Of course one needs to work on decreasing debt during times of economic well being (all politicians seems to forget that part).

Furthermore the Republicans never seem to take responsibility for their own contributions to the high debt we have. Without the vast overspending of the Reagan Bush years we would not have this problem.

Now back to being doomed. Neither the proposals of the President or the Speaker of the House will not bring us back to prosperity as they do too little to stimulate and sagging economy. The bailouts were necessary but did not go far enough for real stimulation of the economy. And we desperately need to invest in those technologies and programs that will get this country back on its feet in international competition. The President knew that and campaigned on those principles but is now forced back to whatever he can salvage and keep our economy from failing. We do not need to go back to the levels of the New Deal in terms of government expenditures, but we need to recapture that economic understanding.

There is good reason why the public is confused. The politicians basically use sound bites rather than reasoned discussion and the news, is more interested in making money for itself through sensational reporting rather than clearing up ideas and concepts for the public. You have to work to understand what is going on in our economy.

For many, they still have not felt the real pressure of a failing economy, but they will if we don’t change directions. The poor and disenfranchised have little voice. And the rich, the very rich, have done an excellent job of selling a system by which they control most of the wealth of the country.

We need an educated populace in order for a democracy to work and we are poorly educated at the present time in these matters.

Also, I have only talked economics in this article as it seems we, have as our accusers have said, are a materialistic country whose values are basically economic values. If we truly brought our religious values into play it would change the nature of the debate a good deal. I am not talking about the histrionics of the radically conservative churches who preach a negative religion intolerance and beating up on those they consider greater sinners, but the basic teachings of all major religions that we are our brother and sisters keepers, and that the common good should outweigh the individual good. That justice, mercy, fair play, and love of neighbor should be what guides us rather than bottom lines and “What’s in this for me and mine?”

I know this is only a little blog read by a few people, but I encourage my few readers to look at what I say and see if it is reasonable and helpful and then to speak up to others.

If we truly want to do some good we need to overhaul the medical provider system of this country which is the major culprit of unbalanced economy and quit fighting wars that we can't win by the means we take. These are the real issues that need our attention and have solutions that are evident.