‘… debt-ceiling standoff is an act of economic sabotage’

With congressional Republicans promising to create yet another standoff on the debt ceiling, Betsey Stevenson and Justin Wolfers, professors at the highly regarded Wharton School of Business, write in Bloomberg about the economic consequences of the first crisis last summer.

They note, for example:

“Growth in nonfarm payrolls decelerated to an average 88,000 a month during the three months of the debt-ceiling impasse, compared with an average of 176,000 in the first five months of 2011. Payroll growth subsequently recovered and has averaged 187,000 jobs a month since. Despite the rebound in job growth, employment is likely still below where it would otherwise have been.”

And consumer confidence — critical in this recovery — took an even greater and more spectacular tumble, as these numbers from Gallup demonstrate:

confidence

They conclude:

“All told, the data tell us that a debt-ceiling standoff is an act of economic sabotage. The only way to avoid this conclusion is to argue that consumers and employers were reacting to some other economic factors. But the debt ceiling was the dominant economic story at the time. No other news fits the data as well. Although the European debt crisis was a rising concern throughout 2011, the real trouble in Europe arose in the period when consumer confidence and employment were recovering.

The next debt-ceiling battle could be worse, because the stakes are even higher. In addition to the threat of default, the U.S. is facing the so-called fiscal cliff: a raft of spending cuts and tax increases that will happen at the end of this year unless Congress acts to postpone them. Another stalemate would almost certainly plunge the economy into a deep recession.”

It’s also important to note that the standoff created an historic downgrade of the USA’s credit worthiness. And for what? Congressional Republicans got a budget-cutting agreement out of the standoff, but it’s a deal that they began to repudiate almost immediately after it was announced and that they are now actively seeking to undermine.

Maybe it’s just me, but I don’t trust the wisdom or patriotism of people who willing to risk the destruction of the economy to make a political point.

– Jay Bookman

783 comments Add your comment

Joseph

May 29th, 2012
12:57 pm

I was expecting to read an article with you not bashing Republicans. Off course I knew that wouldn’t happen…. Your pathetic Bookman…

Jay

May 29th, 2012
1:02 pm

Joseph, it’s my opinion that the modern Republican Party, as currently constituted, poses a real threat to my country, to my children’s future prosperity and to basic rules of logic and reason.

And like it or not, I will continue to point out evidence for why those statements are true.

Paul

May 29th, 2012
1:05 pm

“t I don’t trust the wisdom or patriotism of people who willing to risk the destruction of the economy to make a political point,”

Particularly when Boehner’s doing it to appeasing the extremist elements in their own party.

It’s pretty sad. Boehner’s got himself boxed in with his own Party’s ideologues, he can’t get them to do what he wants, they won’t compromise, so he turns away from Republicans and tries to get Democrats to do what he wants.

Steve

May 29th, 2012
1:06 pm

Joseph – it’s unAmerican to support a party (GOP) that puts their best interests (0.1% of the population) over the rest of us. The debt ceiling debacle is pure politics, bad for the country, and the only people who gain are the likes of the Koch Bros.

Normal Free...Pro Human Rights Thug...And liking it!

May 29th, 2012
1:06 pm

Seems to me that the ring of truth this article has is upsetting to Joseph’s sense of reality….pity, that.

Mick

May 29th, 2012
1:06 pm

Funny how the republicans never even balked during the bush years when they raised the debt ceiling with nary a whimper…

Steve

May 29th, 2012
1:07 pm

Granny Godzilla - Union Thugette

May 29th, 2012
1:08 pm

Jay @ 1:02

Very well said.

SwamiDave

May 29th, 2012
1:08 pm

Based on this, doggedly refusing to address our deficits by curtailing growth of entitlements and returning the federal government its constitutionally-limited roles would be unwise and against the interests of the American taxpayer.

-SD

USinUK - pro-gay-marriage thug and former Girl Scout

May 29th, 2012
1:09 pm

Mick – 1:06 – not so much “funny – ha-ha” and funny, like the way milk smells when it’s been left out in the sun.

Jeff

May 29th, 2012
1:09 pm

1st – Joseph, is that the ebst you can do, name calling?

2nd – So what is incorrect in this piece? The Fact that the CONservatives are doing the sabotaging seems like a known provable item here. They do not want the ecomony to recover while Obama is in office because he will get the credit. Read or listen to people like Rush and Sean and Neal or just a few minutes of Faux News should clear this up for you.

3rd – The CONservatives are already going back on what they promised. They said they would cut the defense budget (and it should be cut, and yes I am a vet) and now they are not so “gung ho” on cutting anything, except help for the middle class or the poor. All these are facts, and easily proven by simply looking at or listening to the CONservatives.

USMC

May 29th, 2012
1:09 pm

“Joseph, it’s my opinion that the modern Republican Party, as currently constituted, poses a real threat to my country, to my children’s future prosperity and to basic rules of logic and reason.”–JAY

More of Jay Bookman’s EXTREMIST views… :-)

USinUK - pro-gay-marriage thug and former Girl Scout

May 29th, 2012
1:09 pm

sorry – AND should have been AS

getalife

May 29th, 2012
1:10 pm

corporate media took a dive for the gop.

They will not call out the birthers or this economic terrorism.

USinUK - pro-gay-marriage thug and former Girl Scout

May 29th, 2012
1:10 pm

“More of Jay Bookman’s REALIST views”

there ya go … typo all fixed for ya …

no need to thank, it’s all part of the service

JF McNamara

May 29th, 2012
1:11 pm

It’s not to make a political point this time. It’s to win an election. Crash the economy and blame Obama. They are trying to recreate the climate that they feel got the Republicans voted out in 2008 only to a lesser extent.

southdem

May 29th, 2012
1:11 pm

“Joseph, it’s my opinion that the modern Republican Party, as currently constituted, poses a real threat to my country, to my children’s future prosperity and to basic rules of logic and reason.

And like it or not, I will continue to point out evidence for why those statements are true.”

You’re absolutely right, Jay, and we need to keep pointing it out. Keep up the good work!

Peadawg

May 29th, 2012
1:11 pm

“the standoff created an historic downgrade of the USA’s credit worthiness.”

LOL! No, our out-of-control debt caused the downgrade, Jay. So what’s your solution to the debt problem? Just keep asking for a good ‘ol credit limit increase?

:roll:

getalife

May 29th, 2012
1:12 pm

“the modern Republican Party, as currently constituted, poses a real threat to my country, to my children’s future prosperity and to basic rules of logic and reason”

Amen.

Joseph

May 29th, 2012
1:13 pm

So Jay keep sepnding money as if its grown on tree’s is a way to protect your childrens future? Libs simply lack logic….

Joe Hussein Mama

May 29th, 2012
1:13 pm

You don’t have to cast your lot in with the Democrats, but it’s high time to leave the GOP, folks.

Take a look at the Libertarians, the TEA Party, the Natural Law Party, even the Constitutionalists if you have to. But bail out on the GOP like I did. They no longer have the country’s interests in mind.

edman

May 29th, 2012
1:14 pm

<>
No, it’s not just you, Jay. It is astounding that rank and file GOP non 1-percenters do not see this, and more to the point, they do not understand the often graphically displayed trend in contributions to the national debt, and hence the ceiling, by Republican versus Democratic administrations. I suppose I shouldn’t find it that astounding, since those same folks rarely comment on your pieces with anything approaching a grammatically correct sentence — another manifestation of the same problem.

Gordon

May 29th, 2012
1:14 pm

Jay @1:02,

Amazing that you don’t consider out-of-control government spending as a real threat to our country and to your children’s future. It’s almost always that the government doesn’t have enough revenue, not that it simply cannot control itself and has done a poor job with the massive resources it has been provided. Those are the threats to your children’s future, and mine as well. If no one ever says “enough”, then what will stop this runaway train?

The idea now isn’t to avoid an economic recession, it is to avoid an economic meltdown caused by a default. There is no easy way out of this.

Jefferson

May 29th, 2012
1:14 pm

Until they will work towards the middle, the GOP is not the answer and they hurt the country.

Aquagirl

May 29th, 2012
1:15 pm

USMC’s gonna hit the roof when Jay writes about the REAL threat to America’s future: tragic overuse of smiley emoticons.

Peadawg

May 29th, 2012
1:15 pm

“it’s my opinion that the modern Republican Party, as currently constituted, poses a real threat to my country, to my children’s future prosperity and to basic rules of logic and reason.”

But not $16 Trillion in debt w/ a credit limit increase coming….

Joe Hussein Mama

May 29th, 2012
1:15 pm

Joseph — “So Jay keep sepnding money as if its grown on tree’s is a way to protect your childrens future?”

Romney’s budget proposals are no different. He’s also projecting red ink as far as the eye can see.

“Libs simply lack logic….”

So do cons, assuming your amusing belief that the GOP will stop all deficit spending is a commonly-held opinion among Republicans.

Joe Hussein Mama

May 29th, 2012
1:17 pm

Gordon — “Amazing that you don’t consider out-of-control government spending as a real threat to our country and to your children’s future.”

Neither does the GOP, as they have yet to propose an alternative that is deficit-neutral or cash-flow positive.

getalife

May 29th, 2012
1:17 pm

The gop have been fighting against our recovery for this election for over three years and admitted it.

Sadly, millions of American voters will reward that party with their votes for these unAmerican actions.

Jefferson

May 29th, 2012
1:17 pm

The bigger the paycheck, the bigger the credit line…

Jay

May 29th, 2012
1:18 pm

Gordon, how many times have I written here that I support a deficit-reduction approach containing a combination of spending cuts and tax increases?

You know and I know that it’s the only approach that is feasible, both in terms of politics and basic arithmetic. And of the two parties, there is only one party that is unalterably opposed to that two-pronged approach.

Furthermore, I would argue that with their insistence on increased defense spending as well as additional tax cuts, Republican “concern” about the deficit is little more than a sham that allows them to pursue their real policy goals.

If you want to show me where I’m wrong in that assessment, please do.

Steve

May 29th, 2012
1:19 pm

So, let’s try austerity like their now departed conservative leaders did, and see what happens. You know, deep recession and social unrest.

Soothsayer

May 29th, 2012
1:20 pm

We have the RepugNOwecan’ts, who doubled the National Debt during King Dumbass the First’s reign and left his successor with an economy and government running over $1.2 trillion/yr deficits.

We have the RepugNOwecan’ts who inherited an economy and government running $250 billion surpluses.

We the RepugNOwecan’ts who started 2 unfunded wars the cost of which will likely exceed $5 trillions.

We have the RepugNOwecan’ts who passed ridiculous tax cuts for the richest Americans while at the same time starting 2 wars.

We have the RepugNOwecan’ts who passed an unfunded Medicare Part D Big Pharma give-away.

We have the RepugNOwecan’ts who single-handedly collapsed our economy and bankrupted our nation.

We have the RepugNOwecan’ts who doggedly refuse to even slightly reduce military spending, yet have blocked President Obama from letting the Bush tax cuts expire.

Yep, I know who I’m a’votin’ fur!

Steve

May 29th, 2012
1:21 pm

“Concern” about the deficit is really just their agenda to keep taxes low on the wealthy, which is essentially starving government. The concept of starving government is not a new concept and they don’t hide their agenda around this.

josef

May 29th, 2012
1:22 pm

I don’t understand the squiggly graphics and the experts on such matters as this present blog topic, but I do understand the concern from those questioning the mentality which seems to have taken over congress. A Republican put it in words that even I can understand…

http://globalpublicsquare.blogs.cnn.com/2012/05/25/simpson-show-me-a-guy-who-wont-compromise-and-ill-show-you-a-guy-with-rock-for-brains/

Paul

May 29th, 2012
1:22 pm

“If you want to show me where I’m wrong in that assessment, please do.”

Heck, open it up to the entire blog.

Answer will be the same.

Silence or diversion.

Truth

May 29th, 2012
1:23 pm

“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the US Government cannot pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. Increasing America’s debt weakens us domestically and internationally. Leadership means that, “the buck stops here.’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.”
~ Senator Barack H. Obama, March 2006

Generation$crewed

May 29th, 2012
1:23 pm

Wow,

From Jay’s conclusion it would appear one can have a standoff with ones self!

I mean where did he even mention democrats? Apparently it was only the Republicans who had a standoff with themselves that caused the last time!

Jay,

C’mon we all know you despise republicans, that’s fine many of ur posters feel the same way about democrats.

1st we get that dishonest math piece that has been dismantled since it was published, now this!

Doggone/GA - 999.999.999.999 (preserving my anonymity)

May 29th, 2012
1:23 pm

“It’s not to make a political point this time. It’s to win an election.”

Elections ARE to “make a political point”

Rabbit

May 29th, 2012
1:24 pm

“In addition to the threat of default, the U.S. is facing the so-called fiscal cliff: a raft of spending cuts and tax increases that will happen at the end of this year unless Congress acts to postpone them. Another stalemate would almost certainly plunge the economy into a deep recession.”

There have to be cuts but thoughtful policy that will implement these cuts in conjunction with revenue increases designed to limit the negative effect of the cuts until they’ve been absorbed is the only way. to move from our current circumstance. It’s not a liberal position. It’s the only viable position.

straitroad

May 29th, 2012
1:24 pm

Jay, I don’t doubt that you are concerned for the country but I don’t see how your party’s solutions will help. Do you think that increasing the debt will get our finances in order? Do you teach your children that personal prosperity can be achieved by spending 40% more than they earn?

East Lake Ira

May 29th, 2012
1:25 pm

Joseph, USMC, Gordon:

Even Romney understands that cuts now will send the economy into a severe depression, why can’t you understand as well?

I really don’t get you folks.

The willful ingnorance is just astounding. Are you afraid to read items from the GOP that conflict with whatever the latest email chain spews as “truth” rather than opening your mind to the possibility that you are wrong?

Steve

May 29th, 2012
1:25 pm

Generation$crewed: are you confusing “convservadems” (who are now being voted out left and right) who voted with the Republicans on the debt ceiling fiasco?

jm

May 29th, 2012
1:26 pm

Jay is the bloomberg troll. I knew it.

Jay

May 29th, 2012
1:26 pm

“No, our out-of-control debt caused the downgrade, Jay. So what’s your solution to the debt problem? Just keep asking for a good ‘ol credit limit increase?

That is incorrect, Peadawg. Standard & Poors made it quite clear that the downgrade was driven not by our debt levels by the inability of Washington to discuss the problem with any sense of real responsibility. If the debt levels had driven that decision, it would not have been timed with the debt-ceiling debacle.

Furthermore, even the Ryan budget will require repeated and massive increases in the debt ceiling over the next few decades. The suggestion that the GOP is proposing any sort of alternative to “keep asking for a good ‘ol credit limit increase” has no basis in reality.

jm

May 29th, 2012
1:27 pm

Everyone keeps saying debt doesn’t matter. Appears it does.

If the market ever turns off the tap, we’re toast.

Jefferson

May 29th, 2012
1:27 pm

Romney will be Bush III, so to speak with each edition worse than before.

Steve

May 29th, 2012
1:27 pm

straitroad – the real policy is to get the economy cranking FIRST and then address the debt, when we have money coming in again and can actually afford to tackle the issue. You can’t fix the debt when you’re trying to climb out of a near depression.

Misty Fyed

May 29th, 2012
1:27 pm

How do you feel about a party that refuses to put forth a budget? They voted against their own presidents budget…voted down the republican budget…but won’t put one out of their own…If they’d deal with the budget issues like they are paid to do, we wouldn’t be worrying about debt crisis issues.

Of course you give the senate democrats a pass while blaming the republicans for arguing about passing more spending on to our kids.

stands for decibels

May 29th, 2012
1:28 pm

I’m really confused by Jay’s framing. Why on earth wouldn’t House GOPers want to tank the economy?

This is the simplest, easiest (i.e., most risk-free) way to do it. Hell, they’d be guilty of political malpractice if they didn’t engage another pointless debt-ceiling battle.

Seriously, am I missing something here?

RB from Gwinnett

May 29th, 2012
1:28 pm

That may be your opinion, jay, but as a matter of FACT, heading down the road you and your fellow socialists want to go down will result in the same place most of Europe is headed toward. Socialism is a proven failure by American standards everywhere it exists, but you can’t wait for us to get there as if somehow the result will be different this time. It won’t be different and no amount of pie in the sky good intentions from you and your ilk will change that.

Peadawg

May 29th, 2012
1:29 pm

” inability of Washington to discuss the problem with any sense of real responsibility.”

Oh so it was Washington, not just the GOP. Thanks for the clarification.

Keep playing the blame game while you’re at it.

jm

May 29th, 2012
1:29 pm

This author says uncertainty over the debt ceiling is a killer. And wrote this a few weeks ago: “The Truth About Uncertainty Is That It’s (Mostly) Untrue”

Georgia, The " New Mississippi "

May 29th, 2012
1:29 pm

You democrats and republicans will still be arguing even when you are standing next to each other in the soup line hoping to get a meal……………. unless the tea party blocks the line.

Doggone/GA - 999.999.999.999 (preserving my anonymity)

May 29th, 2012
1:29 pm

“How do you feel about a party that refuses to put forth a budget?”

You seem to be under the delustion – common today – that a budget is anything more than symbolic,

mm

May 29th, 2012
1:30 pm

“No, our out-of-control debt caused the downgrade, Jay. So what’s your solution to the debt problem?

You cons are like a broken record. When your assinine party decides to raise revenue, then the dems will cut spending, including the military There is no reason as all for the current price of our military.

Your party cut taxes without cutting spending 10 years ago. The true party of borrow and spend.

Your party threatended to let our country default just to keep those tax cuts in place. More borrow and spend.

Your party started 2 wars that were not financed. More borrow and spend.

Your party created the Nedare Part D fiasco. More borrow and spend.

Your party tried to kill the postal service by mandating they pay for 75 years of retirement funds in 10 years.

I could go on and on. You cons are not very bright.

GT

May 29th, 2012
1:31 pm

There was a scene on a presidential town hall meeting where a Tea Party member and leader Ryan Rhodes approached the President and demand to know why Vice President Joe Biden had allegedly called the Tea Party “terrorists”. As usual the Tea Party bullies were clueless to the real problems effecting America and wanted to discuss their own agenda. In the same disrespectful manner of Joe Wilson of South Carolina the Tea Party leader was self absorbed in his own ego, like some immature high schooler showing off to his girlfriend. They think they are Brando taking over a soda shop in leather jackets, where they are closer to Nazi’s at a book burning. Our enemies are within, our fear is pointed in the wrong direction. Now the recognition comes from more voices that VP Biden, wonder how many people can be bullied at one time.

Robyn

May 29th, 2012
1:31 pm

Anyone recall Obama’s vote on raising the debt limit when he was a senator? The hypocrisy is ear-hole deep.

MiltonMan

May 29th, 2012
1:31 pm

According to S&P, “It said the bipartisan agreement reached this week to find at least $2.1 trillion in budget savings “fell short” of what was necessary to tame the nation’s debt over time and predicted that leaders would not be likely to achieve more savings in the future.”

A bipartisan agreement = reps fault in Jay’s world.

stands for decibels

May 29th, 2012
1:31 pm

I should add, Jay, that it’s not like your liberal media colleagues are actually going to call out these vile people. They’ll dutifully continue covering the political battle, as if a sh-tty economy primarily affects the politicians who stand to win or lose their seats.

Chuck

May 29th, 2012
1:32 pm

I love how you folks truely believe that either party cares about the economy as it effects the country. Both the Democrats and Republicans care about the economy is as much as it helps them either gain or maintain power. Right now Barack Obama is asking for the debt limit to be increased while the Republicans are fighting him, when George Bush asked for the debt limit to be increased the Republicans were all for it, and Senator Obama said it would be un-american and dangerous to increase it. It is amazing how the worm turns. What is even more amazing is how the media is never really honest about the situation, they just take one side or the other.

BlahBlahBlah

May 29th, 2012
1:33 pm

The Democrats “plan”

1. Make rich people pay more now
2. Promise to cut spending later
3. Always argue that it’s not “later” yet

Normal Free...Pro Human Rights Thug...And liking it!

May 29th, 2012
1:33 pm

“the modern Republican Party, as currently constituted, poses a real threat to my country, to my children’s future prosperity and to basic rules of logic and reason”

Jay,
That really should be on a tee shirt…

Peadawg

May 29th, 2012
1:33 pm

“You cons”

I’m not a “con” just b/c I have a different opinion than you on a particular subject. I stopped reading your post after those first 2 lines.

MiltonMan

May 29th, 2012
1:33 pm

Obama/Reid: I was first against it before I was for it

http://www.youtube.com/watch?v=RWOMsugKkfk

Soothsayer

May 29th, 2012
1:34 pm

“[T]he real policy is to get the economy cranking FIRST and then address the debt, when we have money coming in again and can actually afford to tackle the issue. You can’t fix the debt when you’re trying to climb out of a near depression.”

Friends, we could have a balanced budget within 6 months and return our country to prosperity in under a year if we instituted a 35% tariff on goods coming into this country from low-wage countries like China, Malaysia, Vietnam and Mexico (not to mention raising the standard of living in their countries).

Of course, the multinational corporations who actually run our country and own and tell our politicians what to do would never stand for it. It would mean less profits for them.

Peadawg

May 29th, 2012
1:34 pm

Now, mm, if you want to re-phrase your post and take out all the “your party” crap, please do and I’ll read it.

JamVet

May 29th, 2012
1:35 pm

their (the GOP’s) insistence on increased defense spending

Insanity with a capital I.

Jefferson

May 29th, 2012
1:35 pm

The problem is cleary the GOP.

Steve

May 29th, 2012
1:37 pm

Bring back the tax rates of the 1950s under Republican Eisenhower when we were profitable, the middle class thrived, and thus the rich profited tremendously and earned more than they lost from tax hikes.

Come on people, stop this current starve the govt/prop up the wealthy insanity that is slowly destroying us.

Where is George W. Bush?

May 29th, 2012
1:37 pm

Atlas Shrugging

May 29th, 2012
1:37 pm

What a useless discussion..neither party has the balls to address entitlements and/or the national debt this year, next years, or 10 years from now …we the people had much rather live in total denial. Move over Greece, make room for the US of A.

JohnnyReb

May 29th, 2012
1:37 pm

Naturally, Liberals only see their side of a debate. In their bleeeding heart thought process debating the debt ceiling does the damage, not adding more trillions to the debt.

Put this one on the ocean front property in Arizona file.

josef

May 29th, 2012
1:38 pm

Georgia, The ” New Mississippi ”

Georgia should be so lucky…cheap, tacky, trashy, unimaginative and downright bigoted…ignoramus!

SFD

I see Milton Man didn’t answer you downstairs…I hope you were wrong…

Normal Free...Pro Human Rights Thug...And liking it!

May 29th, 2012
1:39 pm

GT

May 29th, 2012
1:40 pm

The agenda is power at any cost, organized crime with polish. Small government paid off by big money, to turn its head.

Adam

May 29th, 2012
1:40 pm

Growth in nonfarm payrolls decelerated to an average 88,000 a month during the three months of the debt-ceiling impasse

Suddenly the plan becomes clear… there is a method to their madness….

larry

May 29th, 2012
1:42 pm

The Republicans ” plan”

Make the poor and middle class pay more now
Promise to cut defense spending later
Always argue that it isn’t ” later ” yet

Joe Hussein Mama

May 29th, 2012
1:42 pm

JohnnyReb — “Naturally, Liberals only see their side of a debate. In their bleeeding heart thought process debating the debt ceiling does the damage, not adding more trillions to the debt.”

Given that the GOP isn’t serious about addressing the issue and won’t either negotiate in good faith or stand by prior agreements that they’ve made, the resulting roadblock makes increasing the debt ceiling *indispensable.*

You hear that? If both sides can’t or won’t come to good-faith agreements and/or stand by them, then we have NO CHOICE BUT TO raise the debt ceiling.

If you don’t want it raised again, then contact your lawmakers and lean on them to STOP ACTING LIKE CHILDREN on this issue.

JamVet

May 29th, 2012
1:42 pm

Most of you know my position.

The Democratic Party is gawd awful bad.

And the GOP is degrees of magnitude worse.

TaxPayer

May 29th, 2012
1:43 pm

Your pathetic Bookman…

At least Joseph did not think that you ARE pathetic, Jay.

stands for decibels

May 29th, 2012
1:43 pm

Suddenly the plan becomes clear… there is a method to their madness….

tap tap tap… hello, is this thing on?

“It’s not a bug, it’s a feature,” he said for the thousandth time.

Mick

May 29th, 2012
1:44 pm

reb

The debt only seems to matter when there is a democrat in the white house…

Chuck

May 29th, 2012
1:45 pm

Taxing the rich is just something that is being thrown out as a distraction to the masses, you could tax the rich at 100% at anything over $200,000 and you would barely have enough money to run the country for 2 days, look it up. That is a nothing arguement that is meant to divide the country and have them against each other, instead of the people that should be held accountable for the demise of this country and that is the Democrats and Republicans. Until we SLASH the big 3, Social Security, Medicare, and Defence, not cut but slash,we will never fix the budget. Do not fall in the trap that they are setting for you. If you are consumed with hating each other, then you will leave them alone.

josef

May 29th, 2012
1:46 pm

TAXI
@ 1:43

I laughed out loud when I saw that one…I try not to be too picky given that I make plenty of such errors myself, but that one was outstanding…I couldn’t come up with a snip,,,good job… :-)

Granny Godzilla - Union Thugette

May 29th, 2012
1:46 pm

One side of mouth….NO MORE SPENDING!

Other side of mouth…BILLIONS MORE IN DEFENSE SPENDING!

Good Lord Almighty

Mick

May 29th, 2012
1:46 pm

chuck

Social security is solvent and not the problem…irresponsible tax cuts, wars, medicare part d etc…

Peadawg

May 29th, 2012
1:47 pm

“One side of mouth….NO MORE SPENDING!” – Is that the side (Democrats) what want to raise the debt ceiling?

Doggone/GA - 999.999.999.999 (preserving my anonymity)

May 29th, 2012
1:49 pm

“Make the poor and middle class pay more now
Promise to cut defense spending later
Always argue that it isn’t ” later ” yet”

Well, yes…but that’s not so VERY different from saying that it’s not good to cut spending during an economic downturn, then working to improve the economy…then not cutting spending when it does improve because it’s “not neccessary since we are easily meeting our obligations”

Peter

May 29th, 2012
1:49 pm

How many times did the GOP and Bush Jr raise the debt ceiling ?

Remember deficits don’t matter !

Adam

May 29th, 2012
1:49 pm

RB: That may be your opinion, jay, but as a matter of FACT, heading down the road you and your fellow socialists want to go down will result in the same place most of Europe is headed toward

No, RB, the socialists have not been in control in Europe. The conservatives have been, and they pushed austerity, got their wish, and now we see how quickly you can have negative results from that. Our country? No major federal austerity, and we are in much better shape.

Chuck

May 29th, 2012
1:49 pm

O.K. Mick, whatever, by the way what does the Kool-aid taste like?

Jefferson

May 29th, 2012
1:50 pm

Chuck, SS has not cost the US nothing, it has funded itselft — medicare is a different story as fraud and greed of Drs, hospitals and insurance companies are killing it.

SS can be valid with small additional funding until the base broadens.

Granny Godzilla - Union Thugette

May 29th, 2012
1:50 pm

Peadawg

Clearly you’ve never been accused of being a deep thinker.

Casual at the best of times I think.

Steve

May 29th, 2012
1:51 pm

“No, RB, the socialists have not been in control in Europe. The conservatives have been, and they pushed austerity, got their wish, and now we see how quickly you can have negative results from that. Our country? No major federal austerity, and we are in much better shape.”

Absolutely. This has been reported fact, day after day. But, perhaps not on Faux News Network.

Peadawg

May 29th, 2012
1:51 pm

So enlighten me, Granny. When (recently, not during the 2008 election) has Obama said no more spending?

Peter

May 29th, 2012
1:51 pm

BlahBlahBlah. GOP under Bush…raised the debt ceiling how many times ? Started 2 wars, and cut taxes all because deficits don’t matter.

Sounds like you are speaking GOP with your signature name !

Thulsa Doom

May 29th, 2012
1:52 pm

“All told, the data tell us that a debt-ceiling standoff is an act of economic sabotage”

First of all cause and effect hasn’t been proven as several of the liberals on here will no doubt attest. Only correlation. Secondly, a more severe act of economic sabotage would be to ignore the skyrocketing mountain of debt until we become Greece and folks are rioting in the streets.

“It’s also important to note that the standoff created an historic downgrade of the USA’s credit worthiness.”

Not buying it. Politicians have been bickering about the debt and deficits for a long time. Why would it be any different here. All of a sudden S & P used “bickering” as an excuse to downgrade debt? Baloney. More like they wanted to come off as being neutral in the R vs D debate over the debt so they opined that all of a sudden political bickering is somehow now a quantifiable factor in rating one’s debt- That’s ridiculous and is just a weak cop out along with the grudging admission that the debt in and of itself is an enormous factor.

JamVet

May 29th, 2012
1:52 pm

Taxing the rich is just something that is being thrown out as a distraction to the masses

Buffalo chips.

Economic justice (look up the definition if you must) is NOT a distraction. It is altogether American!

you could tax the rich at 100% at anything over $200,000 and you would barely have enough money to run the country for 2 days, look it up.

BFD.

Where did you Republicans even come up with that cow pie about this being a matter of running the government/paying off the debt?

John Christopher

May 29th, 2012
1:52 pm

Its simple…government is so big that we need to slow down and take care of inefficiencies, waste
and pay down the debt. Whats wrong with wanting austerity versus run a way spending. You can’t keep raising the debt ceiling and raising taxes. At the end of the day we the voters are the blame because for some reason we keep sending these sticky finger clowns to Washington.