Kicked Again

In the first hours of the New Year, Our Leadership enacted a plan to address what had been looming over our heads as the ‘fiscal cliff.’  Yeah, right.

The essential problem of our government is that it spends far more than it takes in, to the point where the stability of the economy is now in question.  To address this, the government must tax more and spend less.  No, it’s not one or the other: we’re in a deep hole and need to do both.  And faced with circumstances that would lead to precisely that outcome, out leadership punted.  Yes, there will be some tax increases, and the ‘payroll tax holiday’ is over.  But there will be no real spending cuts, at least for now.

Worse, the stage has been set for an ongoing soap opera, with the debt ceiling, the deferred spending cuts, and God knows what else rising periodically out of the ooze and requiring urgent negotiations to forestall disaster.

Can someone tell me how this will create real jobs?

4 thoughts on “Kicked Again”

  1. People are going nuts over the payroll tax holiday ending, if the payroll center that manages my paycheck is any example. If we want to stimulate the economy, we have to give the tax breaks to people who are going to spend the money. The problem with stimulus is that once withdrawn, the economy slips back into recession, or at least to a slower growth rate. All that stimulus does is to pull forward demand. Much of the effect of ending the payroll tax holiday will be masked by people getting their earned income tax credit (EITC), which is a refundable tax credit, so look at second quarter numbers. People who get the EITC tend to file their tax returns very early.

    Margaret Atwood is currently writing a book, Positron, where society has become half criminals and half the people who take care of the criminals, and the people switch roles every so often as a route to full employment. One place where I see potential job growth is in welfare program administration. Unfortunately, it won’t be in outreach, but it will be centered on enforcement in an effort to kick people off the welfare rolls.

  2. I would not worry about this stuff. It is just Kabuki theater. They will do what they want. They only do this ‘song and dance’ so we will think they are important. ‘Washington D.C. is Hollywood for ugly people’ is a very true statement, so one has to look at government at any level as a computer program that adds all the special interests up, and then ‘spits out’ an answer. It may not be the best answer, but it keeps everything moving along. They just love been on TV. They are driven by ego. It is one reason they love to have celebrities testify before Congress. I experienced this firsthand at one of my townships meeting. The guy who was chairman of the commissioners was an insurance agent. Acted as if he was US Speaker of the House. This is why Positron is actually reality now. Think of how many businesspersons, and politicians have ended up in prison. Society is now: Of the crooks, by the crooks, for the crooks.

  3. I’m in Illinois and our governors end up in prison so yep politics are run by crooks. I’d like someone to show my an honest politician in Cook County and I’ll show them my beachfront home.

  4. Barbsright, my town is MUCH less interested in putting you in jail than getting you to pay fines for traffic offenses and many misdemeanors. If you are fined, it’s money for the municipal government, but if you go to jail,you’re a cost to the city. The problem is that a lot of people are too broke to pay the fines or they just decide to blow it off. This is why there are usually about 4000 outstanding warrants in a city of 100,000. Suppose that 10% of the warrants are on people from out of town, and another 40% are for people who have more than one. That’s still 4% of the adult population with an outstanding warrant. They can’t put everyone in jail who has an outstanding warrant even if they are caught because the jail has only 600 beds. You get booked, charged $30 as a booking fee, and let loose in most cases. The exceptions are warrants issued for contempt of court and bail violations.

    People get picked up for their warrants in the oddest ways. The police were called because someone had fallen asleep in a convenience store and wouldn’t leave after they were woken up. This store has a couple of tables where you can sit and eat your food. It turned out that they had a warrant outstanding, so they went to jail.

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