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Wednesday, the Congressional Budget Office released August’s budgetary outlook which puts deficits at $1.23 trillion through the first 11 months of fiscal year 2011, which is $28 billion less than the deficit in August of 2010. A 7.6 percent increase in revenues accounts for the decrease, but outlays were also up about 3.7 percent from August 2010, making the total deficit difference smaller than the revenues suggest.
Based on these numbers, the CBO estimates the deficit for fiscal year 2011 -- which ends Sept. 30 -- will total $1.28 trillion, about $10 billion less than last year’s shortfall.
Last month, the CBO released its analysis of the economic impact of the American Recovery and Reinvestment Act of 2009 or what’s better known as the stimulus for the second quarter of the year. That report said that although the effects of the stimulus are waning, the economic situation of the country would’ve been worse without it.
Specifically it said the stimulus raised real gross domestic product by between 0.8 and 2.5 percent, lowered unemployment by 0.5 to 1.6 percent and increased jobs by 1 to 2.9 million.
Evening as it loses steam, the CBO still estimates the stimulus will raise real GDP in 2012 by 0.3 to 0.8 percent and create 0.4 to 1.1 million jobs.
And one more thing to think about: Last year the CBO released a report entitled “The Policies for Increasing Economic Growth and Employment in 2010 and 2011.” This report focused on policy options that might help the economy in the short-term. Some of those options have actually been enacted already and it’s very likely that the president will ask Congress to extend them or enact others in his Thursday speech.
Looking at this report and what the president has said, here’s what the president’s Thursday wish list might look like:
- Extending the payroll tax cut for employees for one more year: Doing this is estimated to cost around $112B (or, that’s what the CBO estimated it would cost to extend it for this year when it first passed in December of 2010).
- Reducing Employers' Payroll Taxes: Firms would probably respond to this temporary reduction in their cut of the payroll tax in four different ways: some would look to lower employment costs by reducing their prices and (hopefully) selling more goods which would spur production and in turn cause an increase in goods or services. Secondly, some firms would pass the tax savings directly onto employees through higher wages or bonuses which might prompt those employees to spend more. Third, some firms would just keep the tax savings as profit which would raise their stock prices and thus raise household wealth for their shareholders, who might spend some of that in the broader economy. Higher profits for companies also improves cash flow, meaning companies could invest in more capital. Finally, some firms would use more workers during the period when this policy was giving them relief, however, most of the “extra” money (that the government relinquished to them with this tax break) would go to reduce taxes for existing workers, so-per dollar of forgone revenue-the added incentive to increase employment and hours worked would be small.
- Extending Unemployment Insurance: Households receiving unemployment benefits tend to spend those checks quickly, making this option timely and cost-effective at spurring economic activity and employment.
- Infrastructure projects: Although the CBO takes issue with these because they usually involve a lot of start-up lag time, it seems like the President might ask for some pretty big infrastructure investment all the same.
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It won't matter what the President proposes this evening...the Teapublicans will look at the price tag and automatically assume that it is all spending and throw a nutty. Even if it was ALL tax cuts they'd be opposed to it simply because the President is proposing it.
Obama said we need to energize the stalled economy by flooding it with "juice."
If I jump start a stalled car and it is successful, the car will start and run. If I fail the car remains stalled.
Obama used $787 billion to jump start the economy. It remains stalled.
It just did not work. Any gains were temporary, as evidenced by the need to do it again.
Except now we have even less money than before.
Also most will be tax cuts - preserving those already in existence. That's not going to stimulate, only preserve the status qou.
Or $1.58 trillion if Obama gets his $300 billion tonight. Or is it now $400 billion? $500 billion? So what number does Obama have to come up with that he knows the Republicans won't accept? Gotta have a campaign issue you know.
Lets just hope they save Cowboy Poetry.
Spanky if you jump start a car and it runs until you shut if off its a bad battery or alternator not the jump start that was faulty.
JAS, try reading the 300 billion is payed for by spending cuts it does not add to the debt.
Great point Tis - Obama has shut it off.
Why did he do that? At least he figured out the business killing nature of over regulation, right?
FYI now days if the alternator is faulty and the battery is dead, the car won't run. Didn't always used to be that way, damn electronic Fuel injection and computers in cars.
Spanky,
It is possible to do EVERYTHING right when jump starting a car and still not be able to start the car.
Really? So what is Obama cutting?
$800 billion is a lot to pay for a service call and not get the car started.
And when the guy in charge (Obama) says "Hey, I'll pay $300 billion more to try again.", you might want to ask if this Obama character knows what he's talking about.
"Job-Crushing", you fool! You were supposed to say, "Job-Crushing"!
Oh Spanky over regulation where. Food safety, pesky bacteria, air quality, who needs to breath clean air, Oh and the banks did so well with no regulation for 10 years right.
And you are so right about cars today who needs science its bad for the economy. I think I will go back to riding my horse to work.
With the Libs in charge, soon we'll be fighting over what caves we live in.
Spanky, Obama started the car and its still running. Republicans are threatening to shut the car off with spending cuts.
why use the analogy of jump starting a car, since obviously its a silly analogy? The economy is nothing like a car.
SEE, Obama has cut the deficit, by $10 BILLION, simply by not allowing the Republican budget to pass.
Now, now, lets be fair...the credit default swaps were a good sound investment...rated AAA by S&P...and S&P's word is gospel as far as the Conservatives are concerned!
Unless Obama's much anticiapated 'Jobs Speech' will be nothing more than rhetoric, I hope he includes some of these points from Mike Brownfield, but who am I kidding he won't. That's why I'll be watching the Packers tonight:
""Morning Bell: Five Ways to Create New Jobs in America
Posted By Mike Brownfield On September 8, 2011 @ 10:01 am In Enterprise and Free Markets |
Two years ago, President Barack Obama was bold in his optimism for job growth in America, promising that his stimulus spending plans would create 3 million jobs by the end of 2010. It didn’t work, the Obama jobs deficit now stands at 6.7 million jobs, and tonight the President will present a jobs plan chock full of new promises. Unfortunately, that plan appears to be a retread of the same policies that have blocked job growth in America.
The good news is that there is another way, and there are things the President can do to pave the way for businesses to create new jobs.
1) Do Less, Not More: For the last two-and-a-half years, we have seen the federal government spend more and regulate more. Instead, the government should step back and free America’s businesses to grow, thereby creating jobs. Heritage’s J.D. Foster writes [1]:
2) Restore Confidence, Eliminate Uncertainty: One of President Obama’s favorite talking points is that wealthier Americans should “pay their fair share” [2] of taxes, threatening to raise rates on small businesses and investors. That rhetoric might play well in populist circles, but his calls for the redistribution of wealth at the expense of the most productive elements of the economy has a real cost–provoking uncertainty.
The President should stop proposing tax hikes and instead focus on instilling confidence in the economy. He can do that by pressing Congress to make current tax policy permanent or, at the very least, extend current policy until the economy returns to near full employment.
3) Get Spending Under Control: President Obama has tried massive government spending to stimulate the economy, and today we’re seeing the results. Deficits, 9.1 percent unemployment, 14 million unemployed, no new jobs created in August, and a reduced credit rating.
Instead of more spending, the President should focus on getting spending under control, reforming entitlements, and setting the United States on a fiscal path with greater economic certainty.
4) Eliminate Unnecessary Regulations: In the first six months of the 2011 fiscal year, 15 major regulations were issued with annual costs exceeding $5.8 billion. Since Inauguration Day, the Obama Administration imposed 75 new major regulations with annual costs of $38 billion. The regulations that are on the books–and the ones that are yet to come–drive up the cost of doing business, discourage investment, and leave businesses waiting on the sidelines until they have more certainty about their future. Instead of regulating more, Washington should end the regulatory assault, eliminate unnecessary regulations, and free our businesses to grow and create jobs.
5) Repeal Obamacare: The President’s signature health care law brings with it more spending, costly mandates and regulations, and higher taxes, all of which weigh heavily on individuals and businesses. Repealing Obamacare would go a long way toward getting America back on the job creation path. Heritage’s Nina Owcharenko explains [3]:
Today, there are 1.7 million fewer Americans working than when the President’s stimulus bill was enacted. Bigger government did not deliver on the promise of creating more jobs for Americans. And though many on the left see an even bigger government and more spending as the cure for America’s stagnant job growth, that simply has not worked. Instead, it’s time for the President and Congress to look away from government–not toward it–have Washington get out of the way, and allow job growth to return to the fruited plain.""
Odds are Obama won't include any point that might reduce spending.... eh!
It raised jobs? Really? Where- in China?
This is a baloney report, based on assumptions a first year Econ student would get a failing grade for submitting.
Reality is not a strong suit in this administration.
It raised GDP by a minimum of 0.8% this year? Honestly? Anybody seen the Commerce reports? Cause, GDP was 0.4% in the first quarter, subject to revision-downward, like quarter four- and revised to 1.0% se nod quarter- again, object to downward revision.
Even the New York Times recognizes we are going to double dip- actually, we are probably there already.
Just wait for the revisions, kids.
This report is as big a joke as the report that said Obamacare would save money.
It's the kind of joke Arthur Anderson came up with when they audited Enron- right before the collapse.
Nice they- no sale.
All good news during Obama's presidency is baloney to Republicans. Why even bother to publish what the CBO states. They are dead set against this president. For two reasons. He is black and a Democrat. They will not help him get the economy going again. They will make sure he doesn't serve a second term. Some of them probably even willing to add "one way or another" to the latter. Yes, I think the South is fully capable of harming another President and we need to watch them to make sure it doesn't happen again like it did to JFK. They are capable of very nasty things to get their way. Like most spoiled children would be. After all they are hogs when it comes to federal funds. They are "do as I say! Not as I do! " Taking more federal funds than they contribute. Expect the thriving blue states to take care of their bad spending habits. And you know what? We do. Obama 2012.
The Weeper of the House sure looks like he could use a stiff one right about now! lol
Take em to the woodshed Mr. President!
No live blogging?
Well, I'm watching it, and all I hear is-
So you dint forget- call before midnight tonight!
It slices, dices, whips and purses!
Plus, eat all you want, and still lose weight!
It's lame, Obama.
Lame, lame, lame.
Given the content of your post NJNB - I would fathom to guess you're playing a little drinking game all by yourself!
Cause - like you told Amy - YOUR i-pad never screws up... lmao@U!
Oh, lord, now he's Lincoln again.
Close up of the wife. . .
She knows.
She's packing.
So, he's taking it to "the people"
The "four corners of the United Stars". That worked well last time.
Over $500 billion today- to be paid, sometime, in the future.
Right.
Even the wife gets it.
He's done.
What an stunning speech - To the heart of all!!
Still, McConnell has a wedgie. And, Cantor did a nice job
of providing security for the President's entrance.
One winner - two wedgies.
Obama's Speech:
Put unions back to work.
I still like fast trains.
Redistribute wealth
I really, really wanna be President again.
Great summary John.
Did you catch the look on the wife's face?
She knows. Lord knows, she knows.
Exactly WHY the NJ nut job is running around with her HAIR & bunny slippers on fire!!
They cannot talk about content so they are reduced to talking about the wife's face... LMAO!
If you think their heads are EXPLODING now? Just wait until he wins his second term...
With any luck they'll leave America to the TRUE American's!
[why use the analogy of jump starting a car, since obviously its a silly analogy? The economy is nothing like a car.]
Well, it has to be silly so Spanky, HoJoBloMo and Smuffy can understand it...even if it doesn't apply.
Last observation-
Last night, FR live blogged the republican debate. . .
Tonight, no live blog of "the speech". . .
Even Team Obama knew it was not worth the effort.
This was a rerun of 2009- delivered in "campaign Obama" voice.
There was nothing new, nothing groundbreaking- just the same old, same old, delivered in " campaign" voice.
The coverage here, on his pet site, and the look on the wife's face, told the whole story-
He's done. Finished. Finito.
"They cannot talk about content so they are reduced to talking about the wife's face... LMAO!"
Michelle was steely.
NJOB, you are punked.
Obama 2012!!
Nothing for the private sector?
What in the name of the wee man are you talking about no jo?
The ball is in the Republican Party's court. Will they do the best for nation..or is it solely about party? Knowing this current crop, I'm betting they will pick party. If they do...shame on them!
So what "assumptions" was the CBO told to make in their analysis?
Maybe they were told to "assume" that it added jobs, or to "assume" that it added to GDP.
By the way - Where is the $500 Billion in 'savings' from Medicare that the CBO was told to "assume" would be cut without changing benefits when they 'scored' Obamacare?
The speech was a complete composite and rerun of speeches past. I am working on finding all similar speeches, so far I have found 5 and I am no where near finished digging.
I imagine the liberals were sitting there with tears streaming down their faces in awe and wonderment. The words just flowed out of his lying mouth because not a single thing he said is anything that will get approved or moved forward. This was a political campaign speech and that's the bare fact. He was using his campaign voice and exhibited the same fire and energy as in 2008 before the election. Expect more of these types of speeches from him until the election.
The guy is a chameleon... a distinctive and highly specialized clade of lizards. They are distinguished by their parrot-like zygodactylous feet and constantly moving mouth. Changes colors to blend in. It's the only way he can fool the simple minded into believing everything he says.
Oh no BrianB if he could have changed his color to blend in I think he would have done that by now! Ha ha hoo hee now I'm belly laughing again. He has zygodactylous feet? Is that like some funky new designer shoes or what? You tickled me pal.
Forrest - I knew someone with your intelligence would laugh at that. Didn't know I knew anything about zoology, did you? I can surprise most people with whats stored between my ears. I have a couple of fifty cent words in my vocabulary. Now if I can just get the correct sentence form right, my English would be perfect and I could become an author. LOL!
I am surprised you left out the bifurcated tongue, and you know we are both a little geeky at times don't you.
You know Bill Gates supposedly told some young people be nice to geeks because you will probably wind up working for one someday.
Eric-913730
"Spanky, Obama started the car and its still running. Republicans are threatening to shut the car off with spending cuts"
Eric, Obama filed the car with gold and is spending it faster than any president in history. Everyone with a clue knows that fact. Spending cuts are what the country needs. Someone with a sense of a balanced budget is what this country needs. Someone who over spends his credit limit for years is not what the country needs. Sure, Bush over spent his budget. However, anyone with a half clue knows Obama overspent his by 4x what Bush did. Keep trying to blame Bush if that is all you have to hang onto. We all understand that you are an Obama apologist. You voted for an idiot and have to stand by him even if it makes you one. It is a given for Obomites.
But don't be too concerned as your mistake will be corrected next year, despite you.
you people are a bunch of idiots. the republican trickle down affect is more like piss on you and thats exactly what they have been doing to the american people for a long time now.and if you keep voting these wingnuts in to office their going to be pissing all over you too. so just wait and you`ll see you dumbasses.
JoAnnaSmith1
You said "With the Libs in charge, soon we'll be fighting over what caves we live in"
Weren't the people fighting to find caves, when the Repubs were in charge and we were losing 700,000 jobs per month. If President Obama took office and stuck his thumb up his butt like the Repubs are doing now. We would be a the Second Great Depression. You can ask any economist, even yours. Doing nothing is no longer an option or a solution.
Just imagine the company you work for does nothing to get customers = no more company.
Doing nothing after Bush destroyed the economy = millions and millions of job loses.
I'm sure that's what you wanted. If that came true and i thank God it did not, you nor I would be posting to this site.
I know I know those statements are to logical for you.
Try this instead - You are a danger to yourself and a danger to this Great Nation.
Moochelle better get her 2012 vacation agenda ready.
One last ride on the gravy train.
Eric-913730
"Spanky, Obama started the car and its still running. Republicans are threatening to shut the car off with spending cuts."
The glass is empty and so are you. Everyone sees it except you. Oboma didn't start a car, he flattened it at the sc\rap dealer with his proposal to buy new cars by the few that could afford them. He played to the wealthy. Everyone knows that, except possibly you. Did you get a new car with an 8k bonus? Didn't think so. SO, why are you still defending this idiot? Golden chain around the nads? The gold will never be yours but tug on it anyway. Please, get a clue and quit being a puppet.
Are you right wingers paying attention?
Thank you Mr. President for keeping us from falling into the abyss!
The right-wingers are paying attention, and they're disappointed the country has not fallen into the abyss.
The Teapublicans have already come out against the payroll tax cuts -- to Da Noid's point.
Even though unemployment benefits are used to create demand for basic goods, you know food, shelter (the same reason sales tax is NOT a good substitute for progressive income taxes or estate taxes), the Teapublican masters would prefer to give benefits to the rich -- who will not spend the money, or on corporations who will spend the money overseas.
Certainly while interest rates are so low, we should repair roads and bridges. There will be additional need after the storms and wildfires. But of course Cantor will demand an off-set, completely ignoring the low interest rates mentioned.
Nope, the Teapublicans will want more amnesty, tax amnesty, regulation amnesty... litigation, what a joke, oh and repatriation. Repatriate jobs!
The problem is that the Republicans have told their Big Business pals NOT to hire anyone while President Obama is in office just to make him look bad and cause him to not be re-elected. So, the big businesses are all sitting on their piles of profits waiting patiently for a Republican to take over the office (heaven forbid)....then the hiring will begin!! This is all a big plan by the Republicans and the Tea Party gang to make our current president look like a failure....I'm hoping it backfires on them. People that are pretty intelligent can see that this is a big scam put on the the Republicans!! President Obama can do many things to get the economy going, but as long as the Republicans and their Big Business pals are in cohorts....nothing will get accomplished, and the Middle Class will be the ones suffering! I don't see it changing much if President Obama is voted out.....keeping my fingers crossed that he is re-elected; otherwise, we'll ALL be in big trouble.
Just imagine what the markets will do tomorrow.
Down, way down.
Forget about Obama and Eurpoe - it always crashes when I go on vacation.
Thank You, Mr. President for doing a Great Job.
Oh crap!!! Spanky is going on vacation. Oh well, there goes the economy. Please hurry back, we need your mindless negative observations otherwise the economy won't recover. Drink lots of tap water while your down there. Mexico, right? They don't need no stinking testing of their drinking water. That's just useless government regulation.
The republicans only believe the CBO when it benefits them.
Lmao....... Thank you sir....may I have another!
I hope the TPUBS bring a towel to sit on tonight.
I'd hate to see all that leather stained.
(Though, some (Walsh et. al.)) will be at home strapped in to their 'Depends')
If that's true Tom - then the readers here @ FR will get a vacation from his inane, incessant, nonsense!
Sounds like a win win situation...
Well, he's in luck - they do have 'Outbacks' in Mexico... lol
Eric, both parties do it- OPEN your eyes and you will plainly see the games both parties pay. funny how defensive the Dems are now after 8 yrs of being offensive- can you see that??
I did not support Obama, but I am very interested in what he wil purpose and will judge it on it's merit, not because I am a Republican or Democrat- I have voted both parties in the past.
I just do not think you and many other posters can say that, so predictable.
Oh well, I still wish you , Feisty and US Navy well.
Spanky... LOL, next year, give me your vacation schedule and I'll sell beforehand. Or would that be considered insider trading ?
"Well, he's in luck - they do have 'Outbacks' in Mexico... lol"
Have a great vacation, Spanky.
Hope you get lots of tips, and that the space for your van under the bridge down by the river is still available when you return.
Spanky hope you have a great vacation.. Any chance you could take Feisty with you so we could all get a break?
What's funny is for some reason YOU can't get enough of me!
With a bit more practice - you too may be granted membership in the Feisty Redhead Fan Club!
Keep reaching for the stars honey...
Spanky,
Enjoy your vacation. I'll miss your sarcastic, sometimes smart, witty comebacks. No Feisty can't go with you. We need her for sanity's sake.
Just look at the spreads they give. You could drive a truck through them (assuming you were a Teamster). This means nothing except to the Obama lovers. He may have avoided the abyss then but I suspect we are firmly in it now thanks to his anti-business, pro-welfare policies. Can't say he didn;t tell everybody he was going to try to spread the wealth.
The problem is this: If the Republicans see an advantage to keeping unemployment high (and they do) nothing the President does is going to cause them to come to the table and discuss what Joe and Joan America need, which is JOBS. If you put the priority on party over the nation, it is easy to see that Republicans will do what they always do, which is to obstruct any progress whatsoever. If they are interested in the fortunes of the NATION, you will see them get down to work and join in with the President to solve the problem. Used to have statesmen on both sides of the aisle that knew that we all benefit if America is humming along economically. But the Republicans believe that they are owed the White House, and are FURIOUS at the interloper who occupies that seat now. Nothing will change. The Republicans don't want it to. Their corporate masters are doing just fine, so why should they care about anything that will deny them power?
Hopefully each item can be voted on with an up-or-down vote -- on the record. That goes for any Blue Dog Dems as well.
NewdayDawning - I realize that the liberals pretty much think as you do... heavens knows I read it all the time here on First Read. I understand how you can come to that conclusion based on the overwelming barrage of like minded thoughts, but I have a differing opinion. It is true that the republicans want to get Obama out of the office. It is true they will pretty much stop at nothing to achieve that goal. I can't deny they are holding things up on purpose and with a willful determination to eject Obama at all costs.
This we can agree on without any reservation. Where I challenge you is in motivation. Do you think it is simply because they want to occupy the White House? Notice I said simply. There's a lot more to the republican desire to get Obama out of office than just occupying the oval office. Personally I think anyone wanting that job has to have several screws loose considering the conditions they will be left with. If you think things were bad when Obama took office, they will be considerably worse in 2012. The world dynamics are changing... China will pose a greater threat as time moves forward. Terrorism is still alive and well on planet earth. The middle east is not cooling down... shall I go on?
The hard reason for wanting to remove Obama is due to ideology. Now you may find this real offensive but the fact of the matter is we have an extreme leftist occupying the office and he needs to be removed. I know you share his ideology but for this country to go totally left will destroy it. The balance needed to keep this country going as a republic has been disrupted and if it goes much further, we will never get this country back to where it needs to be. The same would be said about someone leaning too far to the right.
This country is all about balance. Currently it is out of balance in the worst way. That's why the republicans want the oval office.
BrianB: Yeah, so they can move it the the EXTREME right. There's a difference between extreme left and extreme right, and we need to be in the center of that difference. Going too far in EITHER direction is not going to get this country moving. I see good points on both sides; however, I'm totally SCARED of the Republican party, especially the candidates that are running now. Thinking of any of them running this country sends chills down my spine! They all are TOO conservative, and we need to have some liberalism involved in the White House also. If one of the Republicans running actually wins, and if they continue in the same vein that they've been campaigning in....I seriously think we're going to be in worse shape than we are now!
High employment affects us All. Yes, that includes "You....Teabagers!"
Let's start taking them"sons of bitches"out tonight!!!!!!!!!!!!!!!!!!!!
Count me in!
They want a war - they better be careful what they wish for!
You are a real class act Feisty - all third, but a lot of it.
LMAO........ I would love to see you load and lock any weapon.I bought my wife a new 12 gauge Shotgun, she asked me if I could get her a laser sight! I told her Ummmm your 20 feet away and loaded with double ought buckshot just point this end and pull the trigger.
Reb I bet all those teamster leave you with a bigger spread.
That all you got?? Have at it a$$hole.
Gee Jolly why would a guy that makes a half million dollars a year and has homes in 3 different states have is wife in a place where she feels she needs a 12 gauge in her lap?
If those that have the big money would just SPEND IT instead of holding onto it and taking this nation hostage until they run Obama out of Office in 2012, we might be a little better off. When a small percentage of the population has a big percentage of the wealth, it's up to THEM to get the economy rolling again. Yet, they're more apt to waste it on political contributions, which really does nothing for the here & now.
GJW......again people telling other people what to do with their Money!The only money you can tell anyone what to do with is yours. But you do realize YOU can donate money to the general fund. Just think how patriotic and wholesome you Feisty, Job would feel if you donate a few hundred dollars a month to the general fund. Go to irs.gov and open an account, its relatively easy and you can use your debit card. The problem is......gasp its NOT deductible!
Something you are forgetting jolloldsole: The money they are squatting on is tax pay money that was used to bail them out. So yes, start spending some of it.
With the election more than a year away, neither side can afford the status quo and expect success at the polls. But I believe that their mutual track-records point towards stalemate and legislative paralysis anyway.
Everything that has been released about the "plan" indicates that the President will go small and timid, again naively hoping he can change the political dynamic by being conservative-lite. He will NOT use the word STIMULUS once.
He will tout the "super-committee" and its bipartisan mission of deficit reduction to an unmoved republican audience.
The Speaker will release a statement saying something like;
"With the country in dire fiscal straits, and in the shadow of ZERO jobs created in August, the President wants to throw more taxpayer money we just don't have at yet another "stimulus" plan that did not work the first time out." When we need bold initiatives and a re-thinking of the regulations and taxes that have been KILLING jobs and the economy, the President offers only more spending that we just can't afford."
The following week the speaker will release HIS Jobs plan that will consist of tax cuts, deregulation, and the repeal of HCA, without a single penny in new revenues or taxes.
Neither "plan" will have much, if any traction in the legislature or public opinion, and we will "drift" towards the new year with NO real plan as both parties "position" themselves for the coming election year. The Super-committee will deadlock and arbitrary spending cuts, including a half billion dollars for the military will be implimented.
The Republican candidate(s) will accuse the President of "weakening" America and the President will be left "holding the "bag" as the unemployment rate stays above 8%. through 2012...sigh
Dangerfield--- The party of No has already said No. They don't know what to say No to, but just in case anybody is looking to them and asking what they think, they want you to know they say No. Do they have any brilliant ideas? No!!! But, do they have any ideas that will make the situation worse? Then, they will say Yes.
Dangerfield - interesting that obama said his jobs creation plan is all paid for, all congress has to do is find more ways to cut spending by another $450 billion. We already know how easy it was to get congress and the president to get a false $38 billion cut in the FY 2011 budget and what it took to get the debt ceiling raised.
So considerate of obama to tell congress what a good plan he has, but congress has to come up with the funding cuts to make it happen.
When are we going to knock off the "short-term" crap? Short term budgets, short-term debt reductions, short-term (created jobs). How bout SHORT TERM for almost all these politicians in D.C.? Top to bottom.
And if the GOP had not stonewalled, we could already have money in the pipeline to get necessary infrastructure projects moving. We have to spend the bucks to stay competitive, this is something the GOP sould be screaming for.
What could be done now is interest free loans to states to prevent layoffs.
I know you all are going to poo poo this and to be honest I dont care. I live in a Union city and there are Union people all over Detroit. The word on the street is gear up for contracts and money. The Unions are salivating at the figure !
Yeah! Spend like a drunken sailor, great idea. The government has plenty of money..it comes from a big vault.
Spoken like a true socialist moonbat.
Actually I read in this morning's Free Press that GM's talks are going good, but Chrysler's are sticking over how the medical benefits are going to be paid for, and who's going to do it.
mareP - rather humorous in your observation and lack of reality thinking as each fiscal year budget contains funding for infrastructure. Since the house in 2011 was saddled with the responsibility for creating the FY2011 budget (something that the democrats were to do prior to oct 1 2010) it looks more like the democrats failed in their responsibility.
Since the house has already submitted and passed a FY2012 budget plan which the senate democrats have tabled and have refused to offer their own budgetary plan for expenditures it appears that the democrats are the ones doing the stonewalling.
Really hard to come to any type of compromise when reid and company won't come up with their own amendments/alternatives to house passed legislation.
It is apparent the overall theme here is to get America making stuff again. But what if nobody buys the stuff made here? What good is it to kick start manufacturing if there are not the markets to support production? At this point I would see people holding on to any small income gains rather than spending enough to help the economy as a whole. When times are tough people tend to spend their money on cheaper stuff - read Chinese as opposed to American products. How does that help the economy?
The one point I am in favor of is infrastructure investment.
I ask these questions because it seems to me nether Democrat and Republican proposals do much of anything toward making American products more attractive on both the domestic and international markets.
Too simplistic?
Our products are attractive everybody likes American stuff, you don't think they like Camaro's and Mustangs, and Corvettes on the Autobahn, every country places taxes and tariffs on imports, it is not that people don't like our stuff it is that corporations can use slave wage rates and skirt taxes and then sell the goods in the US tariff free. So they now pay 11 bucks an hour in Texas, and tell you that is a good job, because Apple makes I-Pads in China for $200 a month in wages so be happy or we will move to China. We are the only idiots that say we want free trade a level playing field, no other country wants that, matter of fact they prevent that, they use tax laws to tilt the field. You don't here Germans complaining about no health-care and no pensions, hell they are using Americans as cheap labor in Tennessee to build BMW's but just see what a Camaro would cost in Germany.
Marc - accurate observation on demand. I am sure that ALL economists and politicians would love to know how to create demand.
Demand will likely lag until such time that the consumer comes to grips with getting out of the debt hole they got into with easy credit and the belief that real estate values would constantly increase.
Forrest - with GM's UAW approved teired wage agreement (about $16/hr low end and double that at the high end + bennies) I would hardly say that those are slave wages. Are you implying that since auto workers have such high wages and benefits that camaros in europe are cheap?
Oh no you completely misunderstood, the slave wages are what American companies overseas want to and do pay, 200 a month for workers in China building I-phones. The Camaro I said would be outrageously expensive in Germany because they tack on some brutal tariffs.
funny to read the desperation by many on how the wealthy should "spend" their money when for 2+ years there has been an attack on the wealthy. I must of missed the class where it said slap a person when you want a thank you, lol;o))
I already am seeing the many comments that this is a conspiracy against Obama, I this it is nothing more that consequences to every action being played out.
No Demand= No need to build supply= No need to create Jobs
No Demand= People have no free credit (from the banks or our govt)( Thank God)
Trillions in debt (created by both parties, not just Obama's fault)= Account overdrawn
Welcome to what it feels like when an empire crumble. Can we turn it around, yes- but not with "pinhead" hate comments. I hope posters on this site do not represent the majority of Americans; if so, the empire will crumble fast. Rome destroyed itself, will our enemies see us do the same??
Poor persecuted babies.
"Money is a curse." - Percheck
"Then may the Lord smite me with it." - Tevye
What are talking about Atlas their taxes have never been lower and their share of income has never been higher how are they under attack?
forrest - And the wealthy's share of paid income taxes have never been higher, but the obama talks only about the wealthy paying just a little more. A little more for medicare, a little more for SS, a little more for this and that. Whatever happened to the rhetoric for a fair and balanced approach?
Last fall there was a hew and cry put forth for eliminating the tax cuts on the top 2% of wage earners because it would add about $800 billion in revenue over 10 years. If one looks up data on what the obama (bush) tax cuts would create in revenue if the cuts were eliminated across the board, one finds that the top 2% revenue would still be about the same but the elimination of the tax cuts for the 98% would add revenues in excess of $2.5 TRILLION over ten years. Why not eliminate the obama (bush) tax cuts across the board?
Dangerfield,
I think you are right on with this post.... at least forecasting the future. how very sad that this is what America has become.
" the CBO still estimates the stimulus will raise real GDP in 2012 by 0.3 to 0.8 percent and create 0.4 to 1.1 million jobs"
Did the CBO estimate how many jobs would have been created in the private sector if the money's proper owners, the taxpayers, were allowed to keep their 800 billion?
Freedom works, statism fails.
Wimpy: I will gladly pay you Tuesday, for a hamburger today:
Obama: spend 450 billion now, I will get back to you about how to pay for it.
Borrowed from "Playbook of Republican Fiscal Methods" (ca. 1980-2006)
Bob,
Actually I think the President said: " I'm gonna spend 450 billion now......and you all in that committee need to figure out how to pay for it."
Gee, Bob, isn't that what ex-President Bush said? Let's have a couple of wars now and we'll figure out how to pay for them later? And, let's not add them into the budget because it'll make me look bad. Oh, and by the way, let's fund a program for seniors and children, etc., but let's not allocate any money for that now either! Seems that President Obama is only doing what your wonderful ex-President Bush did when he was in office; only difference, he's being up front about it.
Obama wins again! Forecasters have spoken and the TEA party Yahoos have another loss to hang their heads on! How to fix Social Security now! Here's a summary of ideas to add solvency or extend Social Security. First, raise the cap on income subject to FICA taxes from $106,800.00 to $190,000.00 as proposed by AARP in their current issue. AARP suggest this would close 31 percent of the gap. Workers who normally paid 6.2 percent had that reduced to 4.2 percent by the last Congress. The TEA party would raise that percentage back to 6.2 Percent under their proposal currently in the House. Employers now pay 6.2 percent towards FICA and if that were increased 0.1 percent to 6.3 percent additional easing on the gap would occur. By raising the cap in the first item to $250,000.00 and leaving the tax rates as they are now, would further ease the gap in tax revenues and spread the pain across more of the earnings of more Americans. Everyone, who is eligible, can get Social Security when they reach the retirement age. Everyone should be taxed at the same rate as everyone else and on all sources of income throughout their entire working or earning years. If you thinks this would help to fix this problem or at least ease it, may I suggest you write and call your Representative and Senator in Washington and make your voices heard!
I thought that the employers pay 7.65% FICA and the employees has been adjusted
In 2011, the FICA tax rate for employees was lowered to 5.65%. The employer tax rate remained unchanged, while the Social Security rate for employees was lowered to 4.20%.
rudy and the totas - According to obama the reduction in fica contributions by employees have only dropped temporarily on paper to give the taxpayers a little bit of additional pocket money for spending. the federal government will make up the difference. IE, contributions into the federal SS/medicare balance sheet stays the same
Even Newsweek had an article saying how useless High Speed Railroads would be in America.They figured that when in use,it would only affect 58,000 riders a day yet 300 million Americans + would pay for those 58,000 to ride.
What about during the weekends and Holidays when whole families would go over the river and through the woods to see Grandma? Peak travel times would be horrendous volumes.
I for one would love the opportunity to go see friends out West. I have loved ones in Vancouver, Colorado Springs and Anaheim. Four hundred miles to the gallon for a freight car?
Someone else to do the driving? Awesome!! And I get there in a day or so? Where do I sign?
Seems to work real well in Europe. Think those people are stupider than us?
Course,....America has one thing that Europeans haven't got,.....Republicans.
No, they have Socialist, hey GOP, I bet you never been to Europe have you? They do have trains, but they have the autobahn too, where you can drive 150MPH. They don't have Metro areas like we do here. I try to explain it to you in a way you might understand. Lets say you live in a small city, lets say Big Rapids and you want to go to the UP, you would have to drive to Grand Rapids and take a train to Detroit, from Detroit take the train to Chicago and get a connecting train to Green Bay and then find a ride to the UP. The best part, if you miss the train, you're stuck into the next day.
Don't know where you're getting 400 miles per gallon though. The funnest part of your post, they build better cars!! hahahahaha...................
Cool, Just what we want, government (taxpayer) subsidized rail travel.
HSR may be fine for very limited and well defined routes, but trying to compare the current benefits of european rail service vs general rail service in the US ignores the continental sizes between europe and the US.
Passenger rail probably hit its heyday in the forties and has fallen ever since. With rural populations falling and metro populations increasing, where is the need for HSR except in very limited areas?
....
Tea Party people believe all government is bad and government programs will weaken our economy. Republicans believe the private sector is more efficient in creating jobs and growing the economy. However, the history of the private sector growing our economy, led to the complete collapse of the financial system in 2008. Private industry and business is based on profit. Profit is good if it does not lead to immoral greed. How does the greed and profit motive help the ordinary American who needs a job and needs help with a mortgage. Only Government regulation and government intervention can prevent private industry from overstepping its bounds and hurting its workers. Government needs to continue to funnel funds into the failing economy until the consumer begins to believe that it will get better and consequently spend and spend. The spending habits of Americans are what led to its last twenty years of a growing economy.
As was anticipated,Mr. Obama gave another campaign speech that was long on rhetoric and short on details. If he thinks he is going to go around the country campaigning on that, without being asked by voters for the details and where he proposes to get the money from to pay for it all, he is simply delusional. But this is what Mr. Obama does, gives high rhetoric speeches and hopes nobody asks any specifics. Hell, he repeatedly called for Congress to pass the legislation "right away""today" but he hasn't even submitted the bill to Congress so they can see the details and debate it's merits, let alone pass it "right away". He must really think the average voter is a total idiot. Either that or he is the total idiot.
BTW, I didn't hear anything about balancing the budget and paying off the debt he wants to make bigger. Oops, I forgot, he wants US to deal with that after he leaves office. Well guess what, we can speed that process up by making sure he leaves sooner rather than later!!!
This poll shows how divided we are as a nation. 46% votes A+ and 45% votes D and F. If this was a child's report card you would say they need more time studying. It also shows how little many understand the math to the speech. For those that collect unemployment, they don't make enough to pay any tax. That leaves the other 80% who work. Of those over 50% make about half what they used to. Math does not add up. But you can ask yourself this question though...how much stimulus dollars did you get? You'll get about the same with this one too. WAKE UP AMERICA!
It appears that everyone so worried about the National Debt and Deficit had not a thing to say as the replicans doubled the National Debt from 5.2 trillion to 10.6 trillion in 8 years under bushie2/chiny. The programs they started Medicare D (trillion dollar give-away to pharmaceutical companies), the two wars, and the tax-breaks for the wealthy up until 2010 were buhie2/chiny programs still unfunded.
It took from 1917 to 2000 to get the Nat. Debt to 5.2 trillion and bushie2/chiny 8 years to double it.
The one so worried about it now is evil with evil intent. Willling to destroy this country in the effort to eliminate President Obama.
Osamabin Laden will have accomplished his goal of destroying the U.S. and they side with him.
We need a fundamental revamp of our tax code and the economy. What we have today is a system designed after ww2 that anticipated and promoting housing development. We shipped all the jobs overseas that we could and our economy is 70% consumer based. The president should have asked american's to try and buy products at least 50% made in america. When americans buy more american it will pull up the economy.
Any restructuring of our broke system will always impact people. Their is no solution that won't impact people. Most people don't realize that big biz doesn't like competition and it is a race to the bottom. When at the bottom you are in Bangladesh. A heavily pollute hole with food, water and population problems. When it goes sour, people have more kids. Look at brazil.
If anything, put the teachers back to work. Fund education. Do what ever it takes to get the children and young adults educated. With out that, the next few decades will be lost.
I'm still waiting for the GOp's job plan. And they ran on that in the last election. Feel duped yet?