Tea Party = American Taliban

How much ineptitude does it require for the Tea Party to realize that their current stonewalling will create far greater economic harm to both their constituents and the US economy than raising taxes would?

We are past the point of economic theory on marginal receipts and marginal tax increases.

We are at the brink of a major abyss and a handful of thirty-something year old morons who know less about economics and markets than they do about politics are playing Russian roulette with our financial system.

We should have known that a group of new politicians who were so dogmatic to project images of sleeping in their offices to reduce spending had more in common with the Taliban living in caves than with our way of life. Dogma is a great platform to win an election, it’s a terrible platform for serving meaningful reform to a system built on different principles embedded with massive inertia.

It boils down to a simple analogy. Any company that is so heavily indebted that it may no longer be solvent must raise prices at the expense of fewer sales. It must restructure it balance sheet quickly through a combination of severe cost cutting and raising it’s receipts. It must divest non core operating activities by selling bits of itself off, particularly those pieces that it cannot operate profitably, and it must charge more for those services in which it has a competitive advantage.

This Tea Party stonewalling has already had irreversible consequences. Our political system has been valued as a function of our capitalistic economy because we generally make the right choices in the end. This Tea Party movement is dangerously close to pulling the rug out of any confidence people place in our will to get things right.

Those who dogmatically support the efforts to cap tax increases are going to sustain far greater impairment in their life savings than they ever would in their income. We are beyond rational politics, we are in radical land.


2 Responses to Tea Party = American Taliban

  1. jonolan says:

    The only radicals are traitorous Leftists who demand further tax increases on those already paying almost all of the taxes, largely to support the entitlements to the eaters that produce nothing of worth to our nation.

    All that is required to solve the debt crisis is for Americans to overrule or remove those who refuse to streamline the federal government to the point where it is operating within it means.

    So, if we default – a risk that is more phantasmagoria than fact – it’s all the fault of America’s domestic enemies, the Liberals and Progressives demanding a yet larger bite of America’s productive citizens.

    • greenewable says:

      “Entitlements to the eaters that produce nothing to our nation”? WTF does that mean. Dude, that is so out of touch from reality, it precisely elicits the fear we should all have today that people like you support morons like the Tea Party. the “eaters” you describe represent the overwhelming majority of the middle class who through three decades of wealth transfer resulting from Regan’s trickle down policies live closer to the poverty level than to a vibrant middle class. More than half of the adult citizens in this country were sold a shoddy bill of goods, one in which they were promised that if they work hard, they will be able to retire and live with general comfort and good health. Problem is the morons who ran that system were too afraid to fully fund it, due at least in part to people like you. What made America great was the ability for the “average American” to buy a home, a car, raise a family, and have enough time to enjoy those things. That ability trickled up and made room for enormous wealth creation. Today, two parents have to work twice as hard to get half as far as their parents did. 50 years ago the tax system was a lot less one sided, and did a better job of “spreading the wealth around”. If Obama’s policies were directed at a system that present day was already more just, one could easily label him a leftist, Marxist, or whatever the American Taliban chooses. However, his intention is in fact to normalize the wealth effect to create a SUSTAINABLE economy. The 14T debt ceiling is only 1/3 of our current liabilities. We need to raise taxes and revenue to pay for the promises made 50 years ago. If we don’t we will be raising the debt ceiling every 2 years for the rest of our lifetimes. Cost cutting does not help a company grow, revenue growth does when it is invested appropriately. The United States does not necessarily have to raise income taxes, and in fact I would not make that my first priority. However we do need to increase revenues to the treasury and the fastest way to do that is to start by eliminating wasteful loopholes, and to consider repositioning the American economy onto a sustainable path by taxing consumption, to fund the means of production. The rich should be entitled to what ever they want to have, however, discretionary spending by the wealthy tends to remain in the hands of the wealthy. Raising revenue through a series of luxury taxes on consumption might be a good start. At the end of the day, our country will not be able to create more wealth and new entrepreneurs, if we lack a vibrant middle class with an ability to spend.

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