On controlling the deficit

Eventually we have to get the deficit reduced. Now is not the time, however.

The people demanding austerity now are like those hospital administrators who, in the midst of a mass casualty event, start complaining about the excessive use of bandages and plasma. There might be – heck, it probably is – overuse and wastage. The alternative is dying patients.

Right now we’re no longer dying but we’re not recovering. We still need the plasma and bandages. We need the stimulants.

Taking them away just makes a relapse more likely. Of course, then the people demanding austerity will blame those who denied tools and supplies, but hey – we controlled the deficit, right?


3 thoughts on “On controlling the deficit

  1. I don’t understand why more folks don’t understand/believe this. I don’t believe that the Republicans, blue dogs, and Teapers are against this for political reasons. I think they really believe that now is the time to cut the federal spending. I just don’t get it. Why do they ignore the historical record? (and its not just ignoring it, it’s determined avoidance of facts.)

  2. H.R.25 which is being held up in the House of representatives by Charlie Rengal from being debated is the ONLY stimulus our country needs. I would love to see you balance the budget in your how by spending money you do not have. How is it you think the Government of the US operates under a different economic system then you in your home? If you buy a home and a truck that you cannot pay for, and the interest payment becomes more than you can afford, You will loose your house and your truck. The Japanese and the Chinese Governments are coming for your house and truck because of the money your Government has borrowed on your behalf.

  3. First, if you think it’s only Charlie Rangel who is holding up HR25, I will point out it didn’t get passed when Bill Archer or Bill Thomas, both Republicans, were the chairs of Ways and Means.

    If I’m a business – which is actually more applicable than a home – how do I purchase a factory and truck I cannot pay for? I get a loan. I then use that loan to purchase a factory and truck, and use both to produce and move goods to be sold. Those sales generate profits, and I then proceed to pay off the loans with their accumulated interest.

    I do not have to make enough THIS INSTANT to pay off my loans. I just have to earn enough over the period I promised to pay them off. If I am wise in my borrowing, I use it to generate more income — enough that I actually become more wealthy while paying off the loan.

    Oh – and the Japanese and Chinese are not going to take my house and truck over the money the government has borrowed. Not least, you need to learn the concept “Sovereign Default.” This assumes that the US is so inept and self-destructive it cannot continue to grow and pay debts. If that is so we have a lot more problems than a mere Japan or China foreign debt level.

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