The Futility of Binding Future Congresses

Right now, current law says we don’t have a long-term deficit problem. On the books, everything adds up. The reason we expect enormous future deficits is because we expect Congress will not follow current law:   So why does anyone believe that future Congresses 20 years in the future will actually implement the unpopular tax [...]

The United States Cannot Be Insolvent

Chris Freind says the United States is “insolvent” and that this is “indisputable.” I think he does not understand what “insolvent” means. Insolvent would mean we can’t pay our bills – that our economy is not large enough, is not producing enough wealth to pay our debts, and we are unable to collect the tax [...]

The Insanity of the Deficit Debate

It is simply idiotic that we are even talking about reducing the deficit right now, when it is cheaper to borrow than to pay cash. Here’s Karl Smith: What this highlights is that real rate of return on government 5 year government securities is now negative. You want to stop and absorb that because I [...]

Obama’s Winning the Debt Ceiling Politics, But at What Cost?

Rich Wilkins nicely sums up the state of the politics on the debt ceiling fight: “Let’s step up. Let’s do it,” the president said at a White House news conference between negotiating sessions with congressional leaders. “I’m prepared to take on significant heat from my party to get something done, and I expect the other [...]

There Are Lots of Progressive Ideas for Reducing the Deficit

I don’t usually disagree with Rich Wilkins, but I think this pushback on progressive opposition to a deficit sellout is off-base: I think some of these fears are a little over-dramatic though. Remember when the President was “selling us up the river” with the last budget negotiations a few months back, and the deal ended [...]

It’s a Revenue Problem

The conservative talking point “We have a spending problem, not a revenue problem” is meant to preempt this basic fact about the deficit, as a way to rule tax increases out of hand. But it’s a lie.

Charlie Dent Voted With "Business Interests" 100% Last Year

Via LVCI, the US Chamber of Commerce and The Greater Lehigh Valley Chamber of Commerce say Charlie Dent voted with non-descript “business interests” 100% of the time last year. But is what’s good for “business interests” good for businesses? What are businesses saying they need? Sales! The numbers for taxes and regulation are both within [...]