Wednesday, November 2, 2011
Thom Hartmann vs. Ryan Streeter: Kick starting the Economy : How can we do this
What do you need to jump start a sluggish economy, like I don't know the economy we have today. How can we do this, well the first rule whenever you try to fix something. Is not to do any further harm to the thing your trying to fix, so that would leave out increasing taxes. On the Middle Class or what's left of it, people who are struggling just to survive and pay their current taxes. So that means don't role back the Bush Tax Cuts for the Middle Class or the Reagan Tax Cuts for the Middle Class. And don't go back to an Income Tax System that goes from 25-70 or 90%. Lets not take more money out of peoples pockets who might of been doing very well just three years ago. And make their lives even harder, that would qualify as do no further harm. And Democratic Socialists like the Thom Hartmann's and the Progressive Caucus and others. Make the argument that before Reagan and during Eisenhower, our economy did very well from 1953-81. They fail to mention the recession of 1958-59, with those high Tax Rates. Yes we did have an Economic Boom in the 1960s but Kennedy-Johnson cut taxes at about the same amount. As Reagan did almost twenty years later in 1963 or 64, plus we had the Vietnam War in that decade, spending a lot of money in Southeast Asia. And sending a lot of people over there and as a result, there were more available jobs at home. I'm not in favor of the Vietnam War but it did boost our economy in that decade. People who are in favor of these high Tax Rates, also fail to mention the recession of 1974-75, the economy tanking in 1978. Another recession in 1979-80, during these periods not a lot of money being spent in the Private Sector. And a lot of money from the economy going to government bad combo.
So thats the first rule do no harm, 2nd rule fix the problem and that gets to keeping Tax Rates low enough and that includes everyone. So everyone has incentive to be productive, make a good living and spend money. And with the lack of Consumer Spending thats going on in the economy right now. Thats exactly what we need but another problem with economy is the amount of both Consumer and Public Debt. Without a strong economy, we can't pay down the Federal Debt and without strong Consumer Spending. We can't have a strong economy but if people are drowning in debt, they aren't going to have the money to spend. Because every new dollar they get, goes to paying down their debt. So we have to address the Consumer Spending in any Economic Recovery Package thats passed. And that gets to a Middle Class Bailout for the people who deserve to be bailed out. Of their Consumer Debt some type of Tax Deduction or Tax Credit for these people. To write off enough of their debt to an affordable level and then another Tax Credit to encourage Consumer Spending. Along with an extension of the Payroll Tax Holiday for workers but also extend that to employers as well. And then we need other things like Infrastructure Investment, like a National Infrastructure Bank to fiance that.
Again first rule in Economic Recovery, do no further harm don't make peoples lives any harder then they are now. And then fix the problem to get the economy going again to make peoples lives better. And that gets to things like Consumer Debt, meaning Debt Forgiveness for the Middle Class. Encouraging Consumer Spending, Foreign Trade which Congress and the President did a few weeks ago. And things like rebuilding our own country for a change instead of Afghanistan and Iraq. And have some real Infrastructure Investment in American again.