Wednesday, February 01, 2012

Great explanation of the Debt Ceiling issue

Lots has been said and written about the idiotic situation with federal spending and the accompanying level of fiscal malfeasance of our elected officials.

Here's a video that puts it in perspective so well that even a liberal Democrat can understand it. 


Comments Welcome


Anonymous said...

New income generation is a great idea... how about increasing capital gains taxes and going even more progressive on the big income earners...couple that with cuts to services and we can all meet in the middle... dont balance the budget on the backs of people "working for a living" the vast majority of Americans do not hold investments or other stock...they get their 40hrs per week and have very little "wealth"...

James Shott said...

New income generation is the only way.

Leaving as much money as possible in the private sector will help generate new income.

Many of the people in the 48 percent who pay no income taxes could pay a little bit; they should.

Capital gains are taxed twice already: once as corporate income, and again as capital gains for shareholders. If we want less investment in businesses that provide jobs and products and services that we all need and want, increase the capital gains tax.

Anonymous said...

and increase salaries and wages of the true middle class because without their purchasing power all the bigwig fat cat corporations will continue to see their revenue streams dry up...prices continue to go up yet salaries remain the same so it no surprise purchasing has slowed

but you could be right, as the first thing millionaires and billionaires always do with their profits is reinvest them to help the middle and lower classes...

James Shott said...

Wages aren’t like a lamp that you turn on and off at will. Wages are a product of a complex set of economic factors; they can’t reasonably be raised just because a lot of people want to earn more money. Businesses will pay what they have to in order to get the quality of workers they need, and the more skill people have and the more productive they are, the more valuable they are to the businesses.

But the more businesses pay for labor, the higher the price of what they produce will be. Perhaps lowering business costs would free up money that could go to increase wages, things like the costs over-regulation, corporate taxes, etc.