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nihilism: an update

July 15, 2011

Far-right pundit Erick Erickson has revised his previous point of view that nothing bad will happen if we default to today’s bad things will happen but we can blame them on Obama. This is something that more reasonable Republicans, the ones who know default will be economically destructive but are nevertheless allowing themselves to be brow beaten by the Tea Party into rejecting any and every deal, must be telling themselves a lot. Polls show the opposite – that people already blame the Republicans – and Mitch McConnell, who declared his most important job as minority leader to be defeating Obama, is nevertheless willing to cede power to Obama to raise the debt ceiling without Congressional approval in order to avoid responsibility.

Keep in mind that Obama offered Republicans a deal that included $4 trillion in spending cuts, including to entitlements and discretionary spending. The Tea Party rejected an opportunity to enact the kind of spending cuts that Republicans of only a decade ago would have been salivating over. In fact, moderate Republican pundits and economists practically begged their guys to take the deal.

Though I believe the kind of austerity measures Obama is proposing, enacted during a weak economy, would slow if not end the recovery, I think he’s on the right track for the long term. I actually wish he would go further and enact the Bowles-Simpson plan, which proposes even deeper cuts over the long term than the $4 trillion deal. The problem is there is no political will to make these kind of changes when we are not in crisis. And there may not be the political will to do it now, since actually improving our situation is only the goal of some of the people at the table. Defeating Obama is the goal of  others, and a good deal doesn’t serve that purpose. But if we are to address the deficit, we must eventually cut entitlements and defense spending, and we must raise revenues. There simply is no other way to do it.

3 Comments leave one →
  1. July 15, 2011 2:36 pm

    You are too willing to drink the kool aid. Remember that Obama the “liar in chief” promised to leave the tax cuts in place until the 2012 elections. He has now reneged on that promise like every other promise that he has made. Doubt it, google the lies of obama and the broken promises of Obama.

    Now as to the Repubs and Tea Parties rejecting tax increases, there is good reason for this.
    It reduces revenues and hurts the little guy in the end. For example 30 years ago the libtards got a 10% luxury tax to STICK IT TO THE RICH. It killed the American yacht building industry. The rich are smart and like to keep their money. Now they were shopping for a 5 mil yacht knew that they would have to pay a half mil sales tax which grated on them.
    Being the rich smart dudes that they were starting shopping overseas and discovered that the $5mil yacht here could be built overseas for $3.5 mil and then they could also save the half mil tax as well for a total savings of $2mil. They kiilled the yacht building industry in this country and the blue collar guys building the yachts lost their jobs and their houses.

    I can give you many more examples but raising taxes just means less revenues and jobs for everyone.

    John Wilder

    • Bob Chancery permalink
      July 15, 2011 9:41 pm

      It sounds like the American yacht building industry was destroyed by the free market you so love, and like the American yacht purchaser had been a total chump for years, paying 5 mil for a yacht he could have purchased for 3.5 mil across the pond. I wonder if Hyundai makes a decent yacht for 3.2 mil.? Probably has a better warranty, too.
      Unless there were government regulations protecting the yacht industry…

  2. July 16, 2011 12:57 pm

    You misseed the moral fo the sotry. Rich people will always work to protect their money and every time that the dems try and stick it to the rich it is the little guy who gets hurt in the end.

    Let me give you another example. I used to live in Minnesota the land fo the liberal flakes. (sort of like California and Nuw York) They decided to stick to the rich and passed a 300% prorperty tax increase on landlords. Well if you have a mortgage payment of $600 a month and a property tax of $100 a month and you want to make $100 a month and then allo of sudden your property tax goes up another $200 you pass it along to the renter becuase you can’t go in the hole on your investment. So it is the renter little guy who can least afford to pay the tax, but the landlord has no choice but to pass it along or to sell the house and evict the tenant which happend utntil they quietly killed the tax for the absolute failure that it was. But by God They Stuck it to the rich.

    John Wilder

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