(Fiscal) Cliff Notes

2 Responses to "(Fiscal) Cliff Notes"

  1. benleet   November 15, 2012 at 2:43 pm

    Some history: Between 1939 – 1944 GNP increased by 75%, that's six years of over 7.5% annual growth compounded. GNP increased from $319.8 billion to $561.9 billion, almost all of it increases in military expenditure. Employment increased by 42%, total employment rose from 45.8 million to 65 million, the unemployment rate also dropped from around 10% to below 2% for several years, and the national debt shot to around 120% of GNP. I'm looking at page 20 of Samuel Rosenberg's American Economic Development Since 1945. I believe we could reduce average household debt by adjusting mortgage principals, employ the unemployed in direct government employment, cut military spending and raise the capital gains and dividend tax rate from 15% to 50%, and the income tax rate on the top 5% who take in between 30 to 35% of all income, and grow the economy while maintaining national debt within reason. A better argued plan is the Progressive Caucus plan, A Budget for All. — see http://www.epi.org/publication/wp293-cpc-budget-f… — which purports to lower national debt too 62% of GDP by 2022. The Chicago Political Economy Group, CPEG, also makes a good case for direct government employment funded by a tax on financial transactions. In 2000 federal revenues were at 20% of GDP, then they sank to 14% in 2010, stand at 15% today I believe. A look at international tax bites, overall taxes as a share of GDP, U.S. 27.3%, OECD 36.2%, from http://www.taxpolicycenter.org/briefing-book/back

  2. Lee A. Arnold   November 20, 2012 at 11:43 am

    A lot of people are confused about deficits and the debt. Here is a new, serious cartoon animation that gives some clear and useful information. http://www.youtube.com/watch?v=Wd4HDautaUw