Does the Deficit Matter?

[30ashopper]

How does this government funded lending fund work exactly?

 

[ugabuga]

How does this government funded lending fund work exactly?

I'm not qualified to say "exactly" how, but found the following:

"The centerpiece is the new $30 billion Small Business Lending Fund, which will offer funding to small community banks. (It will be separate from a similar one housed in the Treasury?s Troubled Asset Relief Program.) Other initiatives include nixing capital-gains taxes for small-business investment and increasing the cap on certain Small Business Administration-backed loans."

Link:
Obama to Create Small Business Lending Fund ? The Washington Independent

 

[ugabuga]

Voters don't really care about deficit

Voters don't really care about deficit

Interesting article (link below)

Excerpts:

?Voters, no matter what they tell pollsters, really don?t care that much about the deficit. In fact, if the 30-year history of modern deficit politics, ushered in by Ronald Reagan?s budget-busting tax cuts and military build-up, demonstrates anything it?s that the electorate?s sense of urgency about the deficit ebbs and flows with the economy. When times are tough, voters will express grave concern about deficits. But when the economy improves, they stop regarding it as a pressing matter -- even if the deficit is actually worsening.?

?Start with the dawn of the deficit era -- Reagan?s first term. From George Washington through Jimmy Carter, the United States had managed to rack up about $900 billion in total debt -- a total that Reagan nearly doubled in his first term. In the massive Reagan deficits, Democrats saw political gold. They made it their centerpiece issue, savaging the president for mortgaging the country?s future and -- well, basically, they said everything that the GOP is now saying about Obama and his program.?

Obama should stop worrying and learn to love deficits - 2010 Elections News | Midterm Elections: Senators, Governors - Salon.com

 

[Lynnie]

I think the playing field is much different today with regard to the deficit and global economics. We possibly didn't worry about the deficit when the dollar was so strong (even through the Reagan years) and GDP was strong. I am extremely concerned about the deficit today as well as out of control spending.

"His words, it immediately became clear, were part of a political strategy crafted by a White House that fears that its opponents are making headway with laments about soaring spending and exploding deficits. So, by linking the expiration of the tax cuts to the deficit, the Obama team figures it?ll demonstrate its own seriousness about tackling the debt while simultaneously highlighting the hollowness of the GOP?s rhetoric on the subject."

I haven't seen anything of this Administration tackling our deficit......they need to 'figure' something else.

 

[30ashopper]

I think the playing field is much different today with regard to the deficit and global economics. We possibly didn't worry about the deficit when the dollar was so strong (even through the Reagan years) and GDP was strong. I am extremely concerned about the deficit today as well as out of control spending.

Exactly, Increasing debt is less of a concern when GDP is also growing at a strong rate. Our big problem now is that we're looking at anemic GDP growth as well as growing debt. At some point this becomes unstable. Something I've been reading a lot about lately on economist blogs. The question seems to be, what's the tipping point?

 

[Lynnie]

Exactly, Increasing debt is less of a concern when GDP is also growing at a strong rate. Our big problem now is that we're looking at anemic GDP growth as well as growing debt. At some point this becomes unstable. Something I've been reading a lot about lately on economist blogs. The question seems to be, what's the tipping point?

I personally think we've already tipped. But, November will be a tell-all.
I do try not to think about the present state of the economy too much.....it messes with my chi. ;-)

 

[ugabuga]

I personally think we've already tipped. But, November will be a tell-all.
I do try not to think about the present state of the economy too much.....it messes with my chi. ;-)

After the Nov '10 election, some Reps/Senators/Governors will be voted in, some will be voted out.

In Nov '12 the Pres may be voted out or be re-elected.

To reduce the deficit we have to increase revenues (taxes) and/or reduce services (spending). I don't think ANY candidates in '10/'12 can/will increase taxes or significantly reduce services.

Obama/Krugman & others seem to think the best way out is have the gov't spend even more, a la FDR. Obama's oponents seem to think the best way is to cut services (while also cutting taxes).

It's a Hobson's choice.

 

[ugabuga]

Hey, I've got an idea!

Let's increase revenues by increasing taxes on gas & oil.

Decreased Deficit & Cleaner Gulf.

Win-Win.

 

[ugabuga]

House Approves $37B War Funding Bill

Most of the members of the House of Representatives who say they are against the deficit voted to approve $37B to fund the wars in Iraq & Afghanistan.

102 Dems & 12 Repubs voted NO.


washingtonpost.com

 

[30ashopper]

After the Nov '10 election, some Reps/Senators/Governors will be voted in, some will be voted out.

In Nov '12 the Pres may be voted out or be re-elected.

To reduce the deficit we have to increase revenues (taxes) and/or reduce services (spending). I don't think ANY candidates in '10/'12 can/will increase taxes or significantly reduce services.

Obama/Krugman & others seem to think the best way out is have the gov't spend even more, a la FDR. Obama's oponents seem to think the best way is to cut services (while also cutting taxes).

It's a Hobson's choice.

Let's hope they're wrong, and we don't.