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View Diary: China Cuts US Credit Rating. Obama Cuts Hawaii Vacation Short. (171 comments)

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  •  hmm (3+ / 0-)
    Recommended by:
    ImpeachKingBushII, Bronx59, Odysseus

    i'm no economist, just an IT person, but seems to me that raising taxes to clinton era levels and cutting spending across the board would be beneficial for our country considering we're drowning in debt.  i do understand that if the cuts cause a recession, it's counter productive.  but what if the economy continues to shrug off this tempest in a teapot and letting the "cliff" happen ends up getting the US on track to fiscal responsibility.

    Stop Prohibition, Start Harm Reduction

    by gnostradamus on Wed Dec 26, 2012 at 06:56:09 AM PST

    [ Parent ]

    •  The solution is increasing revenue... (8+ / 0-) increasing the number of people working.

      IOW, more jobs -- which means more people paying income tax. If we brought back the WPA, increased the CCC jobs, and get the country back to repairing our crumbling roads, bridges, and performed needed maintenance at our national parks -- that would prime the economic pump.

      And, yes, those would be government-created jobs, but every newly employed person would be buying groceries and clothes, paying local sales and property taxes, i.e. being the consumers our economy needs. That, in turn, will create more private jobs.

      •  I sure wish we'd try that (4+ / 0-)

        before turning to "chained CPI" and decades more of cuts to social programs. A series of Five Year Plans emphasizing full employment through infrastructure upgrade would push a lot more money into the coffers than reducing the rate of increase in Granny's SS check.

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