So we're broke now?
I admit I don't know much about economics. That said its hard for me to see how this changes anything. We were 10 trillion dollars in debt and all the candidates, except Paul, didn't have a problem with that. What is it about 11 trillion that causes the politicians and us to suddenly sit up and take notice?
No candidate promised to balance the budget in their first year, second year, third year, etc. By the time Obama or McCain finished their first term in office the debt would have been way over 11 trillion anyway, now it will be over 12 trillion. Is that the magic number that is just too much debt?
I'd like some genius of the economy to explain to me why we could afford all these tax cuts and all the additional spending at 10 trillion but it all becomes unaffordable at 11 trillion debt.
The whole scheme seemed like a bribe to people for their vote, income tax cut for the middle class financed from letting the Bush cuts expire, an energy rebate from a windfall tax on oil companies. This with a projected deficit next year of 400 billion. This is not just Obama, Hillary had her payoffs on the table too and so does McCain.
I understand you don't get elected by telling the American people we can't afford any tax cuts, not for anyone, not if we want to stop the exploding deficit and begin to pay it down. Not if we want to invest in rebuilding the infrastructure. Not if we want to reset our whole nation on a path away from fossil fuels and into alternative energies.
To all those people who thought we could afford all these tax cuts and new spending when we had 10 trillion in debt and thought Obama was so wonderful for proposing them and are now oh so worried that we can now not afford them. What is it about 11 trillion dollars in debt that changes everything while 10 trillion dollars in debt was just hunky-dorey?
I'm not rich and I'm not good with numbers, but I'll take a stab: Republicans looked at a calendar and noticed we are just 44 days away from election day and there is no chance in hell they can win. Since they stand to lose not just the White House, but key seats in both houses of Congress to Democrats, this is the last chance Republicans have to exert any control. It's not the number, it's the timing. If they're going to lose, they want to blow up the world.
I really have no idea.
September 21, 2008 9:18 PM | Reply | Permalink
I pretty much agree. It's a move to shackle Obama hand and foot. And along with him, the country.
Health care for irresponsible and now-sick financial companies. But no health care for the people!
It's sickening!
September 21, 2008 9:55 PM | Reply | Permalink
Well this is a watershed moment for a number of reasons but to me this is what rings true.
1. We've been hearing from all quarters now for almost 3 decades that our ideas about Government and Governance just didn't work. That if you simply open up markets and de-regulate and get Government out of the way we will all prosper. That Government had no business in Business. This event once and for all should put this dog down. We should now move forward with a more Progressive agenda and return this republic back to the people.
2. We are embarking on the Nationalization of the Banking/Investment sector of our economy. The recommendations that Secretary Reich advocates on other pages here should be taken up and pushed forward among others. Revamping of our whole borrowing, credit, and bankruptcy laws need to be overhauled.
3. Lastly, One would hope one instant effect of this crises is some responsibilty being taken into boardrooms across the country. The millions paid out to CEO's based simply on stock price has always been outrageous over this period. One would hope the lessons learned will stop us from conentrating on the future rather than the next quarter.
The overriding effects are far reaching and I don't think we are going to know the end point for a long time. For sure, America is in for a rough ride.
September 21, 2008 9:56 PM | Reply | Permalink
the difference ain't 10 and 11, it's 10 and 21.
Investing 10 trillion into the people and infrastructure of this country is an INVESTMENT. There is a good chance that it'll pay itself off and then some.
Investing in the welfare of the obscenely rich doesn't benefit the country or it's citizens, nor is there any likelyhood of a payoff.
I guess i just don't get what you're after here, but it sure seems peevish and silly to me.
September 21, 2008 10:37 PM | Reply | Permalink
I guess Cheney was right when he said Reagan taught us that deficits don't matter. How exactly is borrowing 400 billion and giving it to the middle class going to pay off? Doesn't that money have to be paid back someday? Did the bush tax rebate this year pay back or just increase the debt of every american tax payer? That debt will have to be paid off by someone not the government, its the american people that are responsible for that debt. Or do you think can spend unlimited amounts of money it doesn't have forever?
September 22, 2008 12:43 PM | Reply | Permalink
And I would add
4. CEO's and senior execs took those profits based on stock price and reinvested.... ohhh sorry they put that money away for the looming crisis.
5. re-read #1 and try again to tie this to Obama if you can.
September 21, 2008 10:45 PM | Reply | Permalink