So what does this mean. First, any politician who argues that the economy has started to recovere is going to be laughed out of office. Yeah, people are going to think the guy is a clown for suggesting that an economy where unemployment is increasing is recovering. Yeah jobs are increasing, but so slowly that unemployment is also increasing.
Second, anyone who thinks that we can pay back the deficit because of rising employment had damn well better think again. Until unemployment is dramatically reduced to below 3% it ain't going to happen. Only through moderate taxes, say 1960s 70% rate on marginal incomes above a million dollars, and everyone paying taxes, can we return to surpluses that we can use to repay the debt. Of course at the end of next year when the stimulus runs out, guess what unemployment will increase rapidly and the depression will get worse.
Third, running on reducing the deficit in the short term is either lying through your teeth or you are nuts. Well we know republicans are truly nuts and are nominating the truly nutty to prove it. I still cannot believe one tea bagger sending pornographic e-mail and another being against masturbation. How nutty do we need the republicans to get? That said, trying to reduce the deficit by reducing government spending will do nothing but increase the deficit. Just look at Ireland, which has tried this. They are having worse problems than they were before reducing government spending and the Irish deficit has sky rocketed.
Fourth, we have the trickle downers with their tax breaks for the rich. Trickle downers piss into the wind and wonder why their legs get wet. They never figured out why they get a rash when they use poison ivy as toilet paper. Will these folks really get elected? Unfortunately as more time passes it sure looks like they will be elected. Tax cuts for the rich will drive up deficits and also harm the economy. Who the hell will want to buy Treasury bonds then?
I have argued since 2003 about the problems with economy. Guess what? Those problems still exist as do others. Some problems have been lessened, but they are all greater now than they were before Bush II was elected. I got news for you happy economic news folks, It ain't over till the fat lady sings and she ain't singing any time soon.
We need to put some real iron into the economy. By real iron I mean five to six trillion, that is with a tr not a b, dollars into the economy. That is about fifteen to twenty percent of what went into WWII. After WWII the tax rates on the wealthiest Americans were 90% for 10 years and were reduced to 70% under Kennedy for the next 20 years. Yeah, not until Reagan cut taxes again to 50% did the wealthy start to make out like bandits, only the wealthy did not make as much money as they did under democrats. Oh well so much for factoids.
So if you think these are good times, well if you get your way these will be good times considering what will come.
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