Larry Johnson posted this article on his blog No Quarter last night after the ObamaTV event. Whew, he was hot under the collar and used some rather colorful language but the meat of his contentions bear repeating so I am posting here (excuse the profanity):
"I am livid. Your stupidity on the fundamentals of economics is breathtaking. You blame Republican tax cuts as “not working?” Jesus Christ, man!!! George Bush’s tax cuts cost a total of $1.4 trillion dollars over 8 years. Here’s the link. Not my opinion, it is a fact.
Meanwhile, the Federal Government spent an additional $4.9 trillion dollars. Barack, open your taxi cab ears and listen–the Federal Government, thanks to Republican negligence, doubled the national debt from $5.7 trillion to $10.6 trillion in eight years. That means the U.S. borrowed more money than it could repay.
Do you understand, sir?
Tax cuts did not break the Federal budget. Tax cuts did not immerse the Federal Government in a level of debt not seen ever in the history of the United States. Spending by the Congress and the President helped break the bank. And your “solution” to the current crisis–which was brought on by people and institutions spending money they did not have and borrowing money they could not repay–is to have the Federal government borrow more money it cannot repay and spend it? Are you shitting me?
I am not defending those Republican assholes who acted so recklessly and irresponsibly. They are guilty. But their stupidity does not give you license or excuse to be equally idiotic.
Here’s the scary number. U.S. GDP (i.e. Gross Domestic Product or the output of goods and services produced by labor and property located in the United States) is $14.2 trillion. Our Federal debt is approaching $11 trillion. In other words, our debt represents almost 80% of our annual economic output and GDP is shrinking while the amount of the debt is increasing.
Do get it? If you are in a lifeboat in the midst of the ocean and it is taking on water the last thing you want to do is start pouring more water into the boat.
Sorry, I cut you no break on this. Stupid is as stupid does. Only in this case your monumental ignorance is putting a nation at risk.
UPDATE–As is typical of the obama disciple, SFHillary, he reads things into my observations that are not there. Who has called for “doing nothing?” Not me.
Let’s focus the stimulus on where if should be.
First, cut government spending. How? Every employee of the Federal Government who is in the Senior Executive Service (i.e., holds the equivalent of a senior rank, starting at the 1 star general level) should take a 20% pay cut. Employees at the GS 11-15 should take a 15% pay cut, and those at GS 10 and below should take a 10% cut. Lead by example and make the government lead.
The money freed up by those cuts can be redirected to pay to help people who are in debt over their heads stay in their homes.
This much is certain–adding to the size of the Federal Government will not stimulate the economy and provide for sustained growth.
Second, a reduction on the interest rates of adjustable home loans. This will be arbitrary and costly but the Federal Government will offer to buy up bad mortgages and in turn will charge the folks paying on those mortgages a lower interest rate. The goal is to keep people in their homes, reduce their monthly expenses, and give them a reasonable chance of saving their property. That offers a better chance of stimulating economic growth than having houses go vacant.
Third, no matter how noble or necessary you may think an investment in infrastructure is you must understand that such public works projects do little by way of general economic stimulus. Rebuilding roads, sewers or schools may give us a spiffier nation down the road but it is like any project–if you want to remodel your home you still have to come up with the cash or get a loan. Just because it is the Federal Government does not mean those rules no longer apply."(Source) - emphasis added