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View Diary: The lessons of 1937 (88 comments)

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  •  As a policy... (3+ / 0-)
    Recommended by:
    RJDixon74135, Bon Temps, Timothy J

    it is no time to cut spending.  That is what we need to see in the FY 2014 budget.

    But as a matter of political strategy, a stalemate during the lame duck session that results in the automatic ending of the Bush tax cuts for everybody and and automatic sequester of roughly 8% of discretionary spending (which exempts Social Security, Medicare, medicaid, veterans benefits, and military pay) is preferable to some sort of hasty grand bargain that increases the Social Security retirement age and changes the cost-of-living-adjustment (COLA) for Social Security in the name of protecting the system.

    A Republican Appropriations Committee that has no choice but spend, and a Ways and Means Committee that has no choice but tax would be a great improvement over the obstruction we currently face.  The fallout from the 8% cuts likely will create some pushback on the Republicans in Congress.

    50 states, 210 media market, 435 Congressional Districts, 3080 counties, 192,480 precincts

    by TarheelDem on Sat Nov 24, 2012 at 07:40:30 PM PST

    •  Social Security should not be on the table. (3+ / 0-)
      Recommended by:
      stevenaxelrod, This old man, ER Doc

      Period.

      “Social Security has nothing to do with balancing a budget or erasing or lowering the deficit.” -- Ronald Reagan, 1984 debate with Walter Mondale

      by RJDixon74135 on Sat Nov 24, 2012 at 09:26:27 PM PST

      [ Parent ]

      •  But it will be. TarheelDem is correct.. (1+ / 0-)
        Recommended by:
        Sacto Joe

        the best course for the country :

        But as a matter of political strategy, a stalemate during the lame duck session that results in the automatic ending of the Bush tax cuts for everybody and and automatic sequester of roughly 8% of discretionary spending (which exempts Social Security, Medicare, medicaid, veterans benefits, and military pay) is preferable to some sort of hasty grand bargain that increases the Social Security retirement age and changes the cost-of-living-adjustment (COLA) for Social Security in the name of protecting the system.
        But what is best for the country is not best for a vast number of working Americans who will see their take-home pay plummet.  In addition to modest tax increases, dependent deductions and child care credits go away.  The payroll tax holiday goes away, so each worker will see 2% less pay off the top.

        And those workers are going to say : "WTF?  Why is Social Security sacrosanct?  SS and Medicare are the most  major outlays!  We cannot even ask for them to be tweaked?"

        They will (rightly) ask the government why it is they who must take the hit and why it cannot be spread over all spending.  And, I wouldn't blame them.  Can you?

        So, even if this Congress doesn't reach an agreement, I believe the next one will.  And SS and Medicare have to be on the table.

        •  Why do "SS and Medicare have to be on the table" (0+ / 0-)

          As you say?  

          I call BS.

        •  And the answer to their "why?" is (0+ / 0-)

          Republican obstructionism. The nation needs to learn that obstructionism is a bad thing. far too many believe a "do-nothing Congress" is a good thing.

        •  Take-home pay plummets (0+ / 0-)

          Only if (1) consumer spending drops, (2) business investment drops, (3) government spending drops, or (4) the trade deficit worsens.

          Social Security is sacrosanct because it finances up to a third of the national debt.  Cutting Social Security benefits is stiffing a creditor.

          Workers are not going to attack Social Security and Medicare at all.  They know their value.  Your scenario is not likely.  Workers are already saying "Why is investment income taxed at a lower rate than income from labor?"  Where is the business investment that those incentives are supposed to bring?

          50 states, 210 media market, 435 Congressional Districts, 3080 counties, 192,480 precincts

          by TarheelDem on Tue Nov 27, 2012 at 01:55:33 PM PST

          [ Parent ]

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