This is a political post.
If interested please scroll down.
The media…as always…is doing a shit job of explaining to the American people what is going in in Washington regarding the debt ceiling.
There are two issues:
- The debt ceiling.
- The new budget.
The media, and the Republican Party, are working hard to make these two wholly different things seem like one thing.
They. Are. Not.
THE DEBT CEILING
This establishes the maximum amount of outstanding federal debt the U.S. government can incur.
If the government spends more than it receives in taxes and other revenue the debt ceiling will need to be increased.
Since 1960, “Congress has increased the ceiling seventy-eight times, most recently in 2021. Forty-nine of these increases were implemented under Republican presidents, and twenty-nine were under Democratic presidents.”
The ceiling was increased three times under Trump.
If the government defaults on its debts, financial catastrophe will ensue.
This is vital: the debt ceiling only involves money already approved and spent. It is about past debt not future debt.
Congress must create an annual budget. Which will then be voted on.
The budget is about future debt.
Republicans have proposed a budget.
Democrats have proposed a budget.
Then, the two parties would normally work together to approve a budget after each is forced to compromise.
Here though is the problem.
Republicans want their budget approved. To get this they are holding the debt ceiling ransom. “If we don’t get our way we will force America into default!”
Biden though has been clear. He will not make deals with terrorists.
Republicans become fiscally conservative only when a Democrat is President. They are nothing like this when a Republican is president. And in my lifetime Republicans are much worse at creating a healthy economy than Democrats are.
Republicans want to slash spending. Never though on the bloated military budget. Instead, they want to slash spending on programs which help most Americans.
Democrats want to increase revenue to help most Americans. Their budget details tax hikes on the super-rich and corporations, as well as increasing funding to the IRS to capture billions super-rich people avoid paying because the IRS cannot afford to audit them. The new auditors will only target the super-rich, not you and me.
I own a business.
If I slash spending the only way to really do this is cut the budget to buy lights to restore. This is my single largest line item expense.
What would happen though is that my stock for sale would dwindle. Ever more until I have nothing listed for sale.
Then I would go bankrupt.
This makes no sense of course. What I always need is to increase revenue. The best way to do this is to increase my buying budget and get more lights listed. Yes, I will spend more but will earn even more.
I write this because most voters like the sound of this: Government should reduce spending!
Even I like the sound of that. However, is slashing a budget for the sake of slashing ever a good idea?
Remember these two vital words never spoken by Republicans: increase revenue.
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