July 23, 2011 at 7:00 pm in INFORUM
It’s hard to talk Armageddon with folks who think it’s a good thing. Continue Reading
Tags: columns, Jane Ahlin, Opinion 5 Comments »
Whether the debt belongs to the private sector or to the public sector is irrelevant. As debt relative to GDP expands, it restricts economic growth. This happens because an increasing percentage of income is diverted to paying interest and principal – leaving less to pay for goods and services. At some point, payments of interest and principal overwhelm the temporary benefit of increased consumption through borrowing. When that tipping point arrives, the economy begins to contract uncontrollably. Then, policymakers must watch helplessly as the devastation progresses.
This type of uncontrollable economic collapse can be prevented by avoiding excessive debt in the first place. But that requires prudence, patience, and foresight. Unfortunately, almost all major industrial countries have already gone well beyond that stage. At this point, it is a question of when, not if, the inevitable collapse begins. It may have already begun or will shortly, just don’t look to the economic illiterates in washington for answers.
Like or Dislike: 2 1
Jane you are right on the mark.
My letter to the editor came out last Sunday , about the fear of loosing my Social Security by the Republicans wanting tax cuts for the rich.
When I attend church last Sunday, a woman came up to me and started to trash me for writing my letter. Apparently she was a strong tea party republican with a short fuse. Here she was screaming at me in front of many of the congregation, telling me it was all lies and I should not have written about veterans or even support veterans.
I do not believe church is the place to talk politics, yet alone SCREAM politics.
She said nothing but the republican talking points, that teh rich have to have tax cuts to create jobs. When I reminded her the President Clinton raised taxes on the rich and there were two million jobs created during his term. When Bush lowered taxes on the rich we lost jobs. Lots of jobs.
However, she said she did not remember that and it could not have been true.
Bottom line. Don’t argue politics at church and if you do remember the truth.
Like or Dislike: 9 8
According to your analysis then the quickest and surest way to create more jobs is to increase taxes on the rich, is this your argument? Could you please explain in detail how this works? I’d be real curious to know the step-by-step process how by having the government take more money from a wealthy person, business or corporation boosts economic activity and creates more employment opportunities.
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Bill Clinton lowered the capital gains tax rate about 30%. There seems to be confusion with correlation and causation.
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Full Faith and Credit shall be given in each State to the public Acts, Records, and judicial Proceedings of every other State. And the Congress may by general Laws prescribe the Manner in which such Acts, Records and Proceedings shall be proved, and the Effect thereof. (Article IV section1)
Note that it says nothing of countless $trillions of debt that can never be repaid. Our creditors, which are not states but foriegn central banks and our own Federal Reserve, know full well our debt is worthless. They are slowly selling and buying gold, silver and other hard assets. At some point it will turn to panic and all will try to dump the rest at once. If the Fed creates all the money owed it will be hyperinflation. If they default it will be crashing deflation. There is no other way out. Jane should have written this article in 1976 when we could have taken corrective action without serious disruption. At that time Ron Paul (who first came to Congress) was the “Voice crying in the wilderness” . The latest pole shows he still has all of 9%. There is just no hope and it matters not if the debt cieling is raised.
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