They’ll Stone Ya

Well, they’ll stone ya when you’re trying to be so good

They’ll stone ya just a-like they said they would

They’ll stone ya when you’re tryin’ to go home

Then they’ll stone ya when you’re there all alone

But I would not feel so all alone

Everybody must get stoned



Well, they’ll stone ya when you’re walkin’ ’long the street

They’ll stone ya when you’re tryin’ to keep your seat

They’ll stone ya when you’re walkin’ on the floor

They’ll stone ya when you’re walkin’ to the door

But I would not feel so all alone

Everybody must get stoned

http://www.bobdylan.com/songs/rainy-day-women-12-35



Proposed Theme Song for Congress and the President

Annual G.D.P. Growth Rate During Presidency

Barack Obama, 1.2% 
George W. Bush, 1.6%
George H.W. Bush, 2.1%
Gerald Ford, 2.2%
Dwight Eisenhower, 2.5%
Richard Nixon, 3.0%
Jimmy Carter, 3.2%
Ronald Reagan, 3.5%
Bill Clinton, 3.8%
Lyndon B. Johnson, 5.0%
John F. Kennedy, 5.4%

Click for the Article

http://currencythoughts.com/2008/09/26/us-gdp-growth-under-different-presidencies/

Liberaland by Alan Colmes

From "Liberaland"  by Alan Colmes.  As our economy 

and elected officials struggle we grow more tired 

of all of them. 

Obama Approval Rating 40%, 

Down 10 Points Since June 7

POSTED IN LIBERALAND BY ALAN • JULY 29, 2011, 3:18 PMET • 57 COMMENTS »

Previous low was 41%

http://www.alan.com/

Congress in the Lead

"

"Obama’s Friday appearance had a gigantic unintended consequence. It brought members of Congress together. They decided to take control. The White House is now on the sidelines. Democratic and Republican Congressional leaders are negotiating directly with one another."

David Brooks writes cogently about the budget talks 

Click to read the column

Moderates - The Cult?

I enjoy reading and listening to Paul Krugman. He is a leading liberal economist. But this column is not one of his finest efforts. He blames conservatives, which he always does, but now he also blames balance and centrism.

We have two major competing interests fighting for control of our government and economy. The Conservatives believe we are going broke because we spend too much, while the Liberals believe we are going broke because we tax too little. They are both right.

The voice of reason and moderation calls for both sides to give a little and come up with a deal. That is not a moral failure - that is pragmatic common sense. And that view had better prevail

Not one of your better efforts, Paul. 

July 26, 2011, 5:09 pm

The Cult That Is Destroying America

Watching our system deal with the debt ceiling crisis — a wholly self-inflicted crisis, which may nonetheless have disastrous consequences — it’s increasingly obvious that what we’re looking at is the destructive influence of a cult that has really poisoned our political system.


And no, I don’t mean the fanaticism of the right. Well, OK, that too. But my feeling about those people is that they are what they are; you might as well denounce wolves for being carnivores. Crazy is what they do and what they are.


No, the cult that I see as reflecting a true moral failure is the cult of balance, of centrism.

Click to Read the Column

Thanks to Ken Zalga for Sharing

Deficits Made Clear

Great article in the Atlantic Monthly by  on the deficit. The author divides Federal Government expenditures into Social Security, Medicare, and everything else. 


Against conventional wisdom the everything else portion of the Federal Government is now a smaller portion of GDP then it was during Eisenhower. It is Social Security and Medicare that create our financial problems.


Click to Read the Article

Thanks to Anne Hullinger for Sharing

6% Rate Congress Performance as Good

"Just six percent (6%) of Likely U.S. Voters now rate Congress' performance as good or excellent, according to a new Rasmussen Reports national telephone survey."


I think those 6% must just not be paying attention. 


Click to Read More

Federal Debt - Causes

Some good scoop on the Federal Debt from Wikapedia. The main drivers of deficit increase are Medicare and Medicaid, Defense, income security and food stamps, and Social Security.

The only way to get our country back on track is cut backs in these programs and tax increases. Unfortunately the left refuses any cutbacks and the right refuses and tax increases.

We are clearly on an unsustainable path. If something is unsustainable it will not be sustained. We will eventually do the right thing but it won't make many people happy.

Causes of change in debt

[edit]2001 vs. 2009

Causes of Change in Federal Spending as % GDP 2001–2009 from CBO Data

Causes for Changes in CBO Forecasts.

According to the CBO, the U.S. last had a surplus during fiscal year (FY) 2001. From FY2001 to FY2009, spending increased by 6.5% of GDP (from 18.2% of GDP to 24.7%) while taxes declined by 4.7% of GDP (from 19.5% of GDP to 14.8%). The drivers of the expense increases (expressed as % of GDP) are Medicare & Medicaid (1.7%), Defense (1.6%), Income Security such as unemployment benefits and food stamps (1.4%), Social Security (0.6%) and all other categories (1.2%). The drivers of tax reductions are individual income taxes (−3.3%), payroll taxes (−0.5%), corporate income taxes (−0.5%) and other (−0.4%). The 2009 spending level is the highest relative to GDP in 40 years, while the tax receipts are the lowest relative to GDP in 40 years. The next highest spending year was 1985 (22.8%) while the next lowest tax year was 2004 (16.1%).^[62]

[edit]2001 vs. 2012

The U.S. budget situation has deteriorated significantly since 2001, when the Congressional Budget Office(CBO) forecast average annual surpluses of approximately $850 billion from 2009–2012. The average deficitforecast in each of those years as of June 2009 was approximately $1,215 billion. The New York Times analyzed this roughly $2 trillion "swing," separating the causes into four major categories along with their share:

• Recessions or the business cycle (37%);
• Policies enacted by President Bush (33%);
• Policies enacted by President Bush and supported or extended by President Obama (20%); and
• New policies from President Obama (10%).

http://en.wikipedia.org/wiki/Federal_deficit

New Pragmatic Centrist Party?

"Thanks to a quiet political start-up that is now ready to show its hand, a viable, centrist, third presidential ticket, elected by an Internet convention, is going to emerge in 2012. I know it sounds gimmicky — an Internet convention — but an impressive group of frustrated Democrats, Republicans and independents, called Americans Elect, is really serious, and they have thought out this process well. In a few days, Americans Elect will formally submit the 1.6 million signatures it has gathered to get on the presidential ballot in California as part of its unfolding national effort to get on the ballots of all 50 states for 2012."


Steve Friedman writes an interesting column saying that a political party will emerge to nominate and elect centrist candidates.  I don't know if that is correct or not, but I hope it is. Our current political process elects wing nuts on the left and right. They appeal to their base which demands no compromise and no deals.


We need more elected officials in the pragmatic center. We have let the far left and the far right high jack our country.  So I am all for this movement and hope it will go forward.


We elect the government we want and deserve, and we get what we want. How is that working for you so far? Let us hope we can get some competent ethical people in Congress. We must do a better job of picking candidates and elected officials.


Click to read the article

Budget Deficit Deal

I predict our elected officials will reach a deal on the Budget Deficit. It will include some big program cuts and tax increases.


It will not end America as we know it.  Medicare will cover a little less and require higher copayments. The Cost of Living index for Social Security and other Federal pensions will be reduced a little. We will cut back military expenses and welfare. And we will increase taxes.


None of these things are desirable but we have to do it if we want to keep our country solvent. Although you could never tell this from the hand wringing and crying of both the left and right.


Cartoon Source:  http://agoodchoice.blogspot.com/2011/01/how-about-taxing-government-wheres.html

The Chart above shows the spending of the US Government as a percent of GDP over the past 110 years. Government spending became a larger part of our economy for numerous reasons.  A large part of the increase is due to the addition of Social Security, medicare, and medicaid. And part of the increase is due to the need for a ready to fight military..  


Growth relative to GDP actually leveled out and actually dropped a little in the 1990's.  The recent and troubling spike recently is due to the very poorly economy, large stimulus, and an aging population.


http://www.usgovernmentspending.com/us_20th_century_chart.html

http://en.wikipedia.org/wiki/Government_spending

First Twitter Presidential Debate

The First Ever Twitter Presidential Debate has occurred. The ultimate in the short and snappy discussion

The debate has concluded. All tweets from the debate are available in time order below, and the most popular tweets from the public are available on the right.

 

126 

Timeline Most Popular

secupp S.E. Cupp (Follow)

Welcome all to the first ever Twitter Pres debate! I want to thank the candidates for participating in this historic moment. @140townhall

 

25 retweets

 6 hours ago

 Reply  Retweet  Favorite

secupp S.E. Cupp (Follow)

It's an honor to be your moderator today. We'll begin with opening statements. @TeamBachmann, please take the floor. @140townhall

 

8 retweets

 6 hours ago

 Reply  Retweet  Favorite

TeamBachmann Michele Bachmann (Follow)

.@140townhall TY for this forum.  I'm running 4 POTUS 2 bring the voice of the people back to DC.  That voice requires fundamental changes.

Click to read the entire "debate:

http://140townhall.com/

Bonuses For Billionaires

Pretty funny piece in the NY Times arguing for Bonuses for Billionaires.  It is clear to me that we have to reduce taxes on the wealthy. I feel their pain.

"The first few times I heard House Republicans talk about our budget mess, I worried that they had plunged off the deep end. But as I kept on listening, a buzzer went off in my mind, and I came to understand how much sense the Tea Party caucus makes."

Damon Winter/The New York Times

Nicholas D. Kristof

Click to Read the Article

Are Taxes High or Low? A Further Look

Very interesting article about taxes written by a Conservative. 

By BRUCE BARTLETT

Bruce Bartlett held senior policy roles in the Reagan and George H.W. Bush administrations and served
on the staffs of Representatives Jack Kemp and Ron Paul.

"A couple of weeks ago, I discussed the low level of federal taxes as a share of the gross domestic product in the United States, both historically and in comparison with other developed economies. I noted that total federal revenue — income, corporate and payroll taxes combined –– has been below 15 percent of gross domestic product for three years in a row, its lowest level since 1950 and well below the postwar average of about 18.5 percent of G.D.P."

"Judging by their comments, a great many readers were incredulous. For years, Republicans have told them over and over again that taxes in the United States are exceptionally high and the primary obstacle to growth, and that a huge tax cut would do more to raise growth than any other policy."

Click to Read more

Economic Development

Our free on line book on City Planning and Economic Development.

http://cityeconomicdevelopment.blogspot.com/


Enjoy.

U.S. Business Has High Tax Rates but Pays Less

The United States may soon wind up with a distinction that makes business leaders cringe — the highest corporate tax rate in the world.

But few corporations pay at that high rate.


Click to Read the Article

Throw the Rascals Out - Clean Sweep

I am pretty sure that our nations political leaders will strike a bargain to keep the country from defaulting. It may just be a deal to kick the decision down the road, or they may reach a decision that will bring the budget back into balance.  The budget was balanced for a few years during the Clinton administration. It is tougher now though because the recession is so deep and our country is aging with fewer current workers to pay for the elderly and poor.


The correct deal involves both painful program cuts and tax increases. Not fun or easy but must be done.


In the event they do not reach a deal I think we should throw the rascals out - Democrats and Republicans.  We need some pragmatic people in government.

Collins on the Left, Brooks on the Right

Gail Collins on the left, David Brooks on the Right, Two of my Favorite Columnists.

Gail Collins:    I know you like Paul Ryan and let me throw in some praise for him. I agree with the people who say he was brave to open up this conversation. Although it appears now he did not actually appreciate that the voters were going to hate, hate, hate his idea. So maybe a combination of brave and out of touch.

David Brooks: I agree, this is mostly about Medicare. I also believe it was entirely predictable. It’s not exactly a secret that touching Medicare in any way is deeply unpopular with voters. The average American, earning the median salary, pays about $150,000 into Medicare over the course of their career. They get back somewhere in the neighborhood of $350,00 to $450,000 in benefits. Their grandchildren are involuntarily footing a huge portion of that gap, so naturally today’s voters want to preserve this sweet deal. The Ryan plan threatens their grip on hundreds of thousands of dollars in free money.

Click to read their discussion

Interesting Financial Blog

This is an interesting financial blog

http://www.ritholtz.com/blog/

http://www.ritholtz.com/blog/

We Are DOOMED !!! DOOMED !!!

We Are DOOMED !!! DOOMED !!!

The Federal Govmint is about to default. We are screwed!  Social Security checks won't be paid! We are in the great depression! Run for your lives! Head for the Hills! 

We Are DOOMED !!! DOOMED !!!

No we are not doomed. We are still a very affluent and successful nation. We are going through a rough patch now but things will get better.


Relax. Take a deep breath. Get a little exercise.Get out a little more.


Our govmints financial problems can be resolved by some tough program cuts and some tough tax increases. This is not rocket science. It painful but not impossible.


But you could never tell it by listening to the hand wringing.