The Democratic Strategist: Economy: Karen Nussbaum: A Working America Message From The Field: “Tax Fairness Is The Best Answer in Budget Fights”: He to Reduce Deficits Through Economic Growth and Job Growth.
The best way to pay down the debt and deficit, is simply by having more people working. You get that through economic growth but you also need strong job growth more people working with less unemployment and less people in poverty. More money in peoples wallets and not drowning in debt in order for them to spend money. The Great Recession was special I believe because it had several factors in it and all happened at about the same time. Wall Street failing with large banks that were once very profitable suddenly going under. An economy that started contracting by seven percent in late 2008 and early 2009, millions of people losing the jobs at around the same time. But then add the housing situation to that with housing market taking along with Wall Street and people now owing more money on their homes then the home is worth or what they paid for it.
All these factors led to why the economy did not grow at all during this period and actually shrunk as dramatically as it did. Because millions of Americans are now left without any money to spend and millions of Americans who were once in the middle class perhaps just months before. Now left to collect public assistance in a lot of cases for the first time in their entire lives. And all of these things are the main reasons why our debt and deficit are so high right now. Afghanistan, Iraq are problems as well, as well as Medicare Advantage from 2003, the Bush tax cuts that weren’t paid for as well but without the Great Recession. Our debt and deficit are very manageable right now and we are probably not dealing with sequester and debt ceiling debates right now as well. It would be more like with a growing economy and unemployment still around five percent. How do we pay down the debt and deficit now so we have a strong growing economy in the future. Similar to the debate in Washington in the late 1990s.
So unless we have a strong growing economy thats producing strong job growth. More people working with falling unemployment and more people not only working but with good jobs and money to spend. We’ll never get the debt and deficit under control because we simply won’t have the money to do that. We’ll always be borrowing money to pay the current expenses of the Federal Government because our economy is not growing enough to pay for those expenses. So short term the best way to get the debt and deficit under control is by having more people working and making a living. And spending that money which creates new demand in the private sector and drives up economic growth. Which creates even more jobs to meet the new demand in the economy.
President Obama and Senator Debbie Stabenow members of the Democratic Leadership. Say that the way Democrats want to grow the economy is through the middle out. That is putting unemployed workers back to work and put and money into the hands of middle class and low income people. People who have to spend money in order to survive and can’t afford to sit on a lot of it. Rather then cutting taxes for the top and hoping it gets down to everyone else. Because when middle class and low income people have money to spend and when low income people are moving out of poverty and into the middle class to spend. That drives up economic and job growth and benefits everyone including business’s and the Stock Market because now their profits are up at least in the United States.
I’m for cutting taxes as a way to boost economic growth and employment but it has to be done in a way that does those things. And doesn’t just go straight to business’s for them to add to their profits as they are laying off workers. So you cut taxes that encourages people to spend money and invest in America and create jobs. Not in a way where business’s or individuals just sit on that money and not doing anything with it.