tag:blogger.com,1999:blog-3240565408401956331.post1217377740678468745..comments2023-07-08T05:49:38.333-04:00Comments on Larry Davidson's Thoughts on Macro and Other Stuff: US Governement: Liars and Thieves? Unknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3240565408401956331.post-82551785560629552742015-10-14T09:45:44.125-04:002015-10-14T09:45:44.125-04:00Thanks Tuna. For one thing, when I write a blog po...Thanks Tuna. For one thing, when I write a blog post each week I try to focus on a specific point. Second, the point usually fits in with my interests as a macroeconomist. Clearly the many effects of reducing debt are important and in my past posts I have discussed many of those. I agree that growth is the key to reducing inequalities. But in this one I was mostly looking at the reality of how much spending is already in the Federal government pipeline. As far as your point about shutting down government, unfortunately the apparatus in place in government does not give the Republicans or any subset of them enough power to ram through what they want. I seriously doubt that shutting down the government will help them get that necessary majority in the next election. But I am not a political scientist and am not confident in writing about such things. Larry Davidsonhttps://www.blogger.com/profile/10028971586654033347noreply@blogger.comtag:blogger.com,1999:blog-3240565408401956331.post-57579181326643428752015-10-13T14:52:41.959-04:002015-10-13T14:52:41.959-04:00Dear LSD. The internecine squabble/dysfunction amo...Dear LSD. The internecine squabble/dysfunction among House Rs to find a Speaker exemplifies the solidarity of the U.S. spending problem. The Rs and govomit in general can’t get their respective acts together. Most on the hill agree the deficit/spending is a problem (Is it possible only most Rs agree but no Ds?) but no one except the 42 members of the Freedom Caucus seem to want to do what is needed to stop govomit profligacy. Neither Boehner nor McConnell had the balls to put legislation on Obummer’s bib that would force him to veto and therefore shut down the govomit. They said voters would blame Rs—and of course the drive-by media would gleefully agree. So, until a principled Speaker emerges and/or we get a R in the WH (and maintain majorities in both houses) the deficit/debt will remain.<br /><br />I remain committed to no compromise with Ds and if shutting down the govomit is the only weapon the Rs have (power of the purse) to force action on the deficit/debt issue then so be it. There is no other Constitutional/legal action—asking/letting the Judiciary to weigh in has not proven beneficial to Rs agenda. Let Obummer use his pen and phone; the Rs must use the power of the purse.<br /><br />If you mentioned this in your blog I missed it. Many folks—particularly libs/Regressives—complain about income inequality and the shrinking middle class. I haven’t heard anyone—R or D—explain that the debt is probably the biggest hindrance to reducing income inequality and strengthening the middle class. I see only two ways to reduce the debt: vibrant economic growth, which should both help reduce income inequality and bolster the middle class, and higher taxes, which would do the opposite. The best singular solution to the income/wealth gap and middle class dilemma is good-paying jobs. <br />Tunahttps://www.blogger.com/profile/10963127416474394394noreply@blogger.com