OK

This is only a Preview!

You must Publish this diary to make this visible to the public,
or click 'Edit Diary' to make further changes first.

Posting a Diary Entry

Daily Kos welcomes blog articles from readers, known as diaries. The Intro section to a diary should be about three paragraphs long, and is required. The body section is optional, as is the poll, which can have 1 to 15 choices. Descriptive tags are also required to help others find your diary by subject; please don't use "cute" tags.

When you're ready, scroll down below the tags and click Save & Preview. You can edit your diary after it's published by clicking Edit Diary. Polls cannot be edited once they are published.

If this is your first time creating a Diary since the Ajax upgrade, before you enter any text below, please press Ctrl-F5 and then hold down the Shift Key and press your browser's Reload button to refresh its cache with the new script files.

ATTENTION: READ THE RULES.

  1. One diary daily maximum.
  2. Substantive diaries only. If you don't have at least three solid, original paragraphs, you should probably post a comment in an Open Thread.
  3. No repetitive diaries. Take a moment to ensure your topic hasn't been blogged (you can search for Stories and Diaries that already cover this topic), though fresh original analysis is always welcome.
  4. Use the "Body" textbox if your diary entry is longer than three paragraphs.
  5. Any images in your posts must be hosted by an approved image hosting service (one of: imageshack.us, photobucket.com, flickr.com, smugmug.com, allyoucanupload.com, picturetrail.com, mac.com, webshots.com, editgrid.com).
  6. Copying and pasting entire copyrighted works is prohibited. If you do quote something, keep it brief, always provide a link to the original source, and use the <blockquote> tags to clearly identify the quoted material. Violating this rule is grounds for immediate banning.
  7. Be civil. Do not "call out" other users by name in diary titles. Do not use profanity in diary titles. Don't write diaries whose main purpose is to deliberately inflame.
For the complete list of DailyKos diary guidelines, please click here.

Please begin with an informative title:

By now, you've probably heard the details:

2 year extension on tax cuts for the rich
2 year extension on tax cuts for everyone else
$120 billion Payroll Tax Holiday
13 month unemployment extension
$40 billion in tax cuts for students and families
$30 billion tax write-off for businesses

As you can probably tell from the diaries here, this has ruffled a few feathers. But I have to - reluctantly - support this compromise.

Follow me after the jump to find out why.

Intro

You must enter an Intro for your Diary Entry between 300 and 1150 characters long (that's approximately 50-175 words without any html or formatting markup).

In November, the number of job openings in the US was only 2.4 million. Compare this to the 15.1 million unemployed, or the 6.3 million long-term unemployed.

These people need help.

Blame the Republicans for putting us into this situation if you want. But we can't get the middle-class tax cuts or the unemployment extension through without them - and they won't come along unless tax cuts for the rich are part of the equation.

We need to think about what we stand for, as liberals, or progressives, or Democrats. Is it to stop the Republicans from getting what they want? Or is it to help the least of us, to help those who cannot help themselves?

And we're getting more out of the deal than that. We're getting further economic stimulus - which I thought would be literally impossible. Let's look at how this would stimulate the economy based on Moody's Mark Zandi:

$120 billion in Payroll Tax Holiday (x 1.24 multiplier)
$60 billion unemployment extension (x 1.61 multiplier)
$30 billion business write-offs (x 0.25 multiplier)
$40 billion extension of Earned Income Tax Credit, Child Tax Credit, student loan credits (unknown, lets assume x 1.0 multiplier all combined)

$149b + $96.5b + $7.5b + $40b = $293 billion in GDP growth through 2011

An older blog post from Nobel Laureate Paul Krugman indicates that stimulating $300 billion in GDP growth would reduce unemployment by a full percentage point.

That's 1.5 million jobs created.

Also, by extending the middle-class cuts for only two years as well, we can continue the fight then. Show that the Republicans will hold the middle-class tax cuts hostage no matter what, because the rich and ultra-rich are all that matter to them. That fight will go much worse for them then, during a Presidential election year, when turnouts are higher and more Democrats are headed to the polls.

In short, I feel that we just can't afford not to accept this compromise. Is it exactly what I'd like to see? No. But it's the best option we have.

Extended (Optional)

Originally posted to FormerSwingVoter on Mon Dec 06, 2010 at 06:22 PM PST.

EMAIL TO A FRIEND X
Your Email has been sent.