The US debt limit now stands at almost $29 trillion and has already been exceeded by a tad, with the Treasury employing emergency-type funding techniques to keep paying its bills (mostly wages).
Congress needs to vote an increase on the limit, but Democrats want a moratorium on the limit until the end of 2022 (ie no debt limit until then), while Republicans want no increase whatsoever. In other words, they are polar opposites.
Looking at the chart below I can’t really blame the Republicans…. On the other hand, I see the need for immediate investment in infrastructure, particularly in the sustainable energy sector.
How about this radical idea: BALANCE THE BUDGET! It’s not rocket science, just make sure taxes are raised back to a sustainable level. Trump pushed corporate and individual tax rates to record lows, so there is plenty of room to raise revenue.
Here’s a compromise: a small debt limit increase to tide things over now combined with an immediate significant tax increase on corporate, individual and capital gains income at the high brackets, plus a modest annual tax on large wealth.
It is high time for the US to understand it can’t print its way out of trouble ad infinitum..
btw Hell, if you cap production (for climate concerns); what you get is inflation, not deflation... just a note.
ReplyDeleteThe idea is to sharply reduce consumer demand by following 5R.
Deletesounds hard... production can be (sort of) reduced by fiat... demand requires many generations of brain washing...
DeleteCapping production by fiat is a very bad idea, IMHO. “Brainwashing”, as you put it, is much more effective and, if done properly, smooth and relatively fast. Social mores change, just look at the racial issue in SA and US … from apartheid to the presidency in just one generation.
DeleteAnd I think it’s happening already, albeit starting from a low point.
I have to admit that the U.S. is very good at brainwashing... And no, it is not an innocent business of changing social mores. I have two big problems with it.
Delete1) Brainwashing is one of the most invasive forms of control (1984?) and is dangerous to society as a whole. To persuade someone to the point that the person thinks the persuasion is his own desire; that is a weapon of mass destruction. You can see what has happened to the U.S. when everyone tries to employ it for their own political, moral and economic agenda. The debate is no longer about facts, its about getting people to believe.
2) I don't believe brainwashing works over the long term. To use the example of race; races are different and people of one race will always prefer their own kind. It is not polite to make such preferences obvious; but it is madness to assume it is not present... And I think we will find that out to our cost... again, look at SA and US... the point of "maximum race progress" is also the point of "social collapse".
With respect to this, I think south-east asia's approach (Singapore, Malaysia, Indonesia) is better.... There are differences, there will be tensions, there will be unfairness; the focus is resolving them with minimal violence.
I used brainwashing in jest, obviously it is horrible. The proper term to uses education, mixed in with a bit of progressive state regulation. Again, the US did it quite successfully during the 1960s and 70s, and not only on social issues. For example, the government started mandating strict fuel economy regulations for car manufacturers. Or look at the uproar in the EU about soaring emission permit prices raising electricity prices - you know it’s working when people are bitching and moaning.
DeleteBest example of all: Ireland went from poorest to wealthiest in 30 years by focusing on education, starting around 1975. It works….
nah.... i started using that term, not you... but still, isn't demand reduction brainwashing?
Deletepersuading people to do things that help them achieve their own goals is fine... but demand reduction involves persuading people to change their goals...
for example, successful demand reduction would involve persuading people they do not want to eat meat... or that they do not want to be warm.... it sounds a lot worse than supply reduction. =)
I think wanting less of everything material is a pretty good way forward given that more of everything is literally killing us. And like all uncontrolled chain reactions the rate of destruction will keep climbing.
ReplyDeleteAgain, the 5R model will be very effective, if followed.
How about this: more education, less iPhones 😃
Will be buried for today and friday... will think on what you said. =)
ReplyDelete