Have you ever notice how obsessed Republicans are with only one side of the Economy Coin?
It's as if the Economy was an equation with only one side to it:
Debts, deficits, spending.
And have you notice HOW they totally discount and ignore the other sided of our National Economic Coin:
Jobs, investments, revenues.
You can't have a strong growing economy without a balanced and rationale use of both. Both sides of the same Economic Coin.
You can't have spending without revenues.
Outgo, without Income.
Republicans have chosen the Outgo side of the Economic Equation to obsess on -- no matter who's Income gets squashed in the process.
Because in their view closing Tax loopholes, ending Big Oil subsidies, taxing the Wall Street transactions, do nothing to pay-down our National Debts. (even though these sources, especially Wall Street bankers, often do seem to add to them.)
What Economic Dolts! Income is income. Most people when faced with mounting debt, look for "extra sources" of those. Even to the point of getting a second job; Or cashing-in their 401k's; Or selling some of their consumer toys.
Not Congress -- when faced with mounting debt, they quit paying the Electric Bill, they cut back on Groceries, they tell the kids to get a Paper-route, cut lawns, shovel their snow.
They dip into the kid's college savings plan -- to pay off their own wall-street gambling debts.
If only their were an Economic Literacy Test -- that congress persons were required to take -- and pass -- before being given the important responsibility of "Balancing the Nation's Budget."
If only their were an Economic Literacy Test -- to ensure congressional posers understood basic Economic concepts like these:
Definition of Debt vs Deficit
[...]It takes "extra income" to pay down those "accumulated deficits." (Think of paying down those "accumulated" student loans, that many of us have done, at some point in our economic lives.)
The government takes in revenues, or receipts, through income taxes, social insurance taxes, etc.
The government also spends money every year (also known as outlays) on a variety of different things, including social security, defense spending, etc. etc.
If the government spends more than it takes in over the course of one year, then it has run a deficit. A deficit applies to just one year.
So, if the government takes in $10 trillion dollars but spends $13 trillion dollars in one year, then it has run a $3 trillion dollar deficit.
A debt is completely different. Think of debt as accumulated deficits.
And about finding that "magic" net-zero spending point, that Republicans have established as their end-all be-all goal.
Definition of Balanced Budget
What is meant by the term "balanced budget"? What does the term "balanced budget" mean?
A "balanced budget", when referring to a federal government, occurs when:
1) a government expects revenues to match expenses for an upcoming fiscal year
2) a government actually balances revenues with expenses
In short, a "balanced budget" can be predicted based on expected revenues and expenses [...]
If a government spends more than it takes in, then it will post a deficit.
If a government takes in more than it spends, then it will post a surplus.
If only their were an Economic IQ threshold -- to ensure congressional Debt-obsessors would be forced to take sober economic-advice like this:
by Krysta Loera, Ringoffireradio.com -- February 27, 2013
[...] Bernanke was frank with the Senate and his fellow Republicans. He warned that short-term spending cuts would damage the recovery that has taken the U.S. years to accomplish and that sequester cuts are not the route this country should take to reduce the deficit.
“Given the still-moderate underlying pace of economic growth, this additional near-term burden on the recovery is significant. Moreover, besides having adverse effects on jobs and incomes, a slower recovery would lead to less actual deficit reduction in the short run,” says Bernanke.The sequestration is projected to have an extremely negative impact on the economy and American citizens. [...]
It takes a strong growing economy to grow our way out of our Debts. To grow the GDP Opportunity Pie. To give everyone a larger slice.
Yet Republicans assume the economy will only grow, if we shrink government services; if we cut back on workers wages and hours; if we block all revenues increases, even when closing such loopholes was perfectly OK, for a Romney-Ryan candidacy not so long ago.
If only their were an Economic Literacy Test -- to ensure congressional oath-takers cared about basic Economic Growth and societal well-being. Instead of constantly chasing payout phantoms, somewhere over their pie-shrinking horizon.
Or as Robert Reich recently put it:
"What about the Jobs Deficit? That's our real economic problem."
Good question. The CBO has several "well-balanced" thoughts on that framing-changing topic:
What about the GDP Deficit? What about the Jobs Deficit?
by jamess -- Mar 01, 2013
Republicans are Economy-squashers;
Because they are obsessed with only one side of the Economy Coin ... the anti-growth side.
The Grover Norquist pledge of allegiance that most of them have signed is evidence of this.
And THAT obsession on Debt just Dumb! (Especially with the historically low interest rates we now command. Other countries want to lend us money. Other countries want to buy our T-Bills.)
WHEN is the Austerity Crowd ever going to take a Pledge to promote Jobs? To focus on growing our GDP? (With more than just Campaign promises, that is.)
Have you ever noticed how 1 coin has 2 different sides to it? Well our Economy does too. There's the income side; and there's the outgo side.
That's how Economies work. It's about the FLOW of money -- NOT the HORDING of money.
Everyone needs to get their slice of the GDP Pie, if an Economy is ever to really work.