Oh, you've got a better one? Let's hear it. I'm not blaming anyone. I'm just pointing out that the economy does better when we tax the rich. It's true in theory, and it's true in historical fact. You can complain all you want to, but that doesn't change the facts.
If the Democrats want to spend more money, my only question is why they had to borrow all this money instead of raising taxes to cover all this increased spending.
Adam Smith's observation, that no government had ever repaid its debt, remains as true now as it was then.
It would come from the same place as other government money does, Federal spending. A Monetarily Sovereign nation, that issues its own currency, denominates all debts in its currency & imposes taxation payable only in its currency, creates currency by means of Federal spending, destroys it through taxation & alters the composition of financial assets by "borrowing", exchanging non-interest bearing Federal debt (money) for interest bearing Federal debt (bonds). For any such nation (eg: Canada, US, Japan, Australia but NOT the Euro Nations) neither taxes nor "borrowing" fund Federal spending. Taxes function to regulate aggregate demand & to ensure currency demand. "Borrowing" or debt issuance is done primarily for the purposes of interest rate maintenance & but also provides a risk free (non-productive) investment vehicle with a guaranteed rate of return, a form of welfare. The monopoly issuer of the currency spends by issuing new money into the economy, essentially just by crediting accounts. Money represents a transferable, non-interest bearing debt of the Federal Government, it is the debt in which all others are denominated, the national unit of account. It is also a debt that should never ever be repaid. To do so would drain the economy of all government financial assets & the Private Sector would be left without net savings of government financial assets. It would also collapse the payment system. For the Private Sector to net save in government denominated financial assets the Public Sector (ignoring the foreign sector for simplicity) MUST run a Federal budget deficit. The Public Sector's deficit is the Private Sector's surplus/net savings (assuming a balanced Foreign Sector) Public Sector + Private Sector (+ Foreign Sector) = 0 A Monetarily Sovereign nation is under no obligation to issue interest bearing Federal debt. Any such issuance is voluntary. On any interest bearing Federal debt it does choose to issue, the rate is set by fiat, NOT by the market.
The debt isn't an immediate problem, the fact is we can have a sustainable deficit, we are almost there now, and go on for centuries, which in practical terms is eternity.
Unless the wealthy put their money in the stock and commodity markets where they just trade it among themselves with a tiny bit trickling out when they buy their yachts and mansions, which is what they do with their money. Banks have traditionally relied on small savers for the deposits that they loan out but instead of putting their money in banks the small savers are putting it into the market with their retirement mutual funds, which means declining deposits for the local and regional banks, the ones that lend to people and small businesses. As more and more money goes into the markets there is less and less for the banks that make local loans. The big national banks make some local loans but their net lending in most areas is negative when compared to deposits. In other words the big national banks take more deposits than they lend while local banks lend more than they take in deposits. As local bank deposits decline they have no choice but to curtail lending. Big banks have little idea about small borrowers so have a rule of thumb for them that is essentially if you don't need to borrow money we will give you a loan. SO the big banks have all the money and won't lend it while the little banks that would lend it don't have it
Obama uses progressive rhetoric to mask his right wing policies. Obama is to the right of Nixon. Just as it took a conservative Republican to go to "Red" China, only a Democrat can accomplish the destruction of the safety net. Obama wants to impose austerity, he wants to gut Social Security, Medicare, Medicaid, food stamps (SNAP) & other social programs. ObamaCare is conservative policy that is a bonanza for the health insurance industry, it''s their equivalent of the bank bailout.
