Feb 10, 2018

February 11, 2018: Rescumlican Fraud, Useful Bludgeon, Economic Sabotage



Rest assured, whatever the Rescumlicans say they are, they aren't.”

----from “The Quotations of Chairman Joe”

Economist Paul Krugman, about whom Caesar Disgustus has nothing but contempt and is, therefore, worth reading, wrote an opinion published in Friday's New York Times about the fraudulence that now permeates the party of Lincoln. (1)

In 2011, as the country was reeling from the financial meltdown occurring under the last Rescumlican maladministration, Paul Ryan and his Rescumlicans “issued a report full of dire warnings about the dangers of budget deficits. 'The United States is facing a crushing burden of debt,' it declared, warning of a looming fiscal crisis that might soon 'capsize' the economy”.(2)
The Scums then went about refusing to raise the debt ceiling creating financial and political turmoil “effectively blackmailing President Barack Obama into cutting spending on domestic programs.” (3)

My daughter once told me that she wanted to study economics. I told her to ask the department at the university if they taught Keynesian economics pointing out that if they did not, then the department was staffed with a faculty that simply does not understand the subject. I had been introduced to Keynes in high school and the lessons were reinforced in my college instruction. Of late, the conservatives have been waging war upon John Maynard Keynes citing the fraudulence of Milton Friedman and, following corporate sponsorship at many of the business schools in this country, the error has spread into the media whereupon the idiot wrong have adopted the mantra.

Keynes famously taught that during recession the government should run deficits so that purchasing power would rise fueling production and recovery. With recovery comes increased government revenue which, as the economy improves over time, leads to reduced deficits and then surplus. Government should run deficits in time of recession, surplus in time of prosperity.

But the 'deficit hawks', about whom the Rescumlican Party claims a monopoly have, it has become apparent, never met a surplus they didn't hate and never met a deficit they didn't love—except, of course if the deficits occur under Democratic presidents. It is worth noting, as a side note, that the only budget surpluses ever achieved since World War II have been under Democratic presidents. Lyndon Johnson left Nixon a budget surplus in 1969, and Bill Clinton's budget surpluses during the last years of his presidency.

The budget deficit that caused Ryan and his 'hawks' such animated histrionics was 1.09 trillion in 2012 (4). “This week Republicans, having just enacted a huge tax cut, cheerfully agreed to a budget deal that, according to independent experts, will push next year's deficit up to 1.15 trillion—bigger than in 2012. True, this won't quite match 2012's red ink as a percentage of G.D.P., but this time none of the deficit will be a result of a depressed economy.” (5)

Indeed the economy, now at near full employment, is performing at such a level as to cause the Fed to increase interest rates in an attempt to dampen down economic activity lest that great bug-a-boo inflation once again emerges from under the collective bed.

Krugman points out that with unemployment at about 8 per cent there were sound reasons to run deficits in 2012, now with near full employment at about 4 per cent we should be nearly balancing the budget, if not creating a budget surplus and paying down the debt—as Clinton had done at the end of his business cycle. But as, in 2001, when the scums returned to power, the first casualty is fiscal responsibility. It is worth noting that the deficits under 'Ol Two-Cows' George W. Bush were created two months before the attacks on the World Trade Center. Indeed by June 2001, Bush had instituted—you guessed it—tax cuts, mostly on the wealthy, and made them retroactive to January 1 of 2001 so the scums could later claim that Clinton's last budget had left the scums with a deficit (the first fiscal budget of any incoming administration is the one passed in the last year of the outgoing administration. Hence, Disgustus' fiscal and economic policies do not take effect until his second year in office, laying false his claim that he is responsible for, for instance, low unemployment).

Indeed, Krugman points out that the Rescumlicans were never sincere concerning deficit spending. How do we know this? “It was obvious, even at the time, to anyone who looked at their fiscal proposals. These proposals always involved giant tax cuts for the wealthy—funny how that worked—offset by savage cuts in social benefits. Even so, assertions that deficits would go down depended entirely on assuming lots of revenue from closing unspecified loopholes and huge savings from cutting unspecified government programs. In other words, even at the peak of their deficit-hawk posturing, all Republican really had to offer was redistribution from the poor to the rich” (6).

The deficit scare, as Krugman points out, prove a useful as a bludgeon with which the Rescumlicans would pummel Obama into cutting social and infrastructure rebuilding programs and hobble his presidency.

And, Krugman continued: “I don't think it's unfair to suggest that there was an element of deliberate economic sabotage. After all, Republicans weren't just vehemently opposed to fiscal stimulus; they were also opposed to monetary stimulus. Basically they were against anything that might help the economy on President Obama's watch” (7). Indeed, former Ohio Senator George Voinovich (Rescumlican) said, just before he died, that the Rescumlican senate caucus was ordered to oppose everything that Obama proposed, even if it hurt the country for Mitch McConnell was determined that Obama be a one-term president the country be damned.

Now” Krugman rightly observes, “Obama is gone, and suddenly deficits don't matter.” (8)

This is about Republican bad faith. Everything they said about budgets, every step of the way, was fraudulent. And nobody should believe what they say now.” (9)

Indeed, Disgustus pledged to eliminate the so-called “carried interest” loophole, where investors—especially real estate investors—get what amounts to a long term interest free loan, but the loophole is still there. Indeed, the last tax cut included nearly a half trillion dollars, over ten years, in tax benefits to real estate investors. This explains the enthusiasm overwhelmed Disgustus and why Senator Corker—who had vowed to oppose any tax measure that added a cent to the deficit—himself a real estate tycoon, was moved to support it. Not eliminated either were the loopholes in the tax code that rewards companies for outsourcing jobs overseas, indeed the latest Rescumlican creation created even more such loopholes. No they were never serious about this.

What this demonstrates is that once again Disgustus cannot be seen as an aberration. The animus of Disgustus toward all things Obama predates his arrival by 8 years. The same mendacity, the same resistance, motivated by an all-too-transparent racism as well as unlimited political expediency, was deeply entrenched well before the orange slime slithered up Pennsylvania Avenue.

An' Br'er Putin, he jus' laugh and laugh'

Impeach and Imprison


______________________


  1. Krugman, Paul. “Fraudulence Of the Fiscal Hawks” The New York Times. Friday, February 9, 2018. Page A25
  2. ibid
  3. ibid
  4. ibid
  5. ibid
  6. ibid
  7. ibid
  8. ibid
  9. ibid



No comments: