A few select statements

A counterpoint response to my comment that the President needs to tell the truth more than he does not, might be “all politicians lie.” Yes, they do, but he laps the field at a 69% rate of untruthfulness per Politifacts.  But, he also makes decisions off his supporting lies.

One that gives me concern is “You can win a trade war.” History has shown this not to be true and we will soon be finding out as Canada just added their retributive tariffs to those of the EU and China. By the way, the lone constant in these three tariffs is the US. The impact is already showing up in economic decisions by companies,

Today he said “the tax cut is the reason for our economic miracle.” That is a stretch in that we are completing 108 consecutive months of economic growth today, which is the second longest in US history. He has only been President for a little more than 17 months and the tax cut has only been in effect for 6 months. As for the long term, I am worried about the tax cut increasing our huge and increasing debt. To be frank, the tax cut will help some short term, but hurt us in the long run.

Yesterday, he noted again “Russia said they did not meddle in our election,” to me implying his tacit support. But, the US intelligence asserts with high confidence that not only Russia did, but the Trump campaign benefited from it. Plus, they said the Russians are still influencing opinion and sowing seeds of discord. The question we must ask is why? Why say this? Why let it go on? Why is Congress not more assertive to get to the bottom of this? Why do you people believe him when he calls the investigation a witch hunt?

Finally, the Affordable Care Act is in need of stabilization and select improvements. Instead, it has been sabotaged at the expense of Americans, once by Congress in 2015 and just last summer by the President. When he defunded payments to insurers for copays and deductibles for families making less than 2 1/2 x poverty limit, he said “it would only impact insurer profits.” That is simply untrue. The CBO noted that the impact would increase the debt by $10 Billion. Why? As insurers raise premiums as a result of picking up this unfunded tab, the premium subsidies would climb by $10 Billion. That means it effects taxpayers by that amount.

The sad truth is there are numerous instances where lies and oversimplified problems and solutions have caused policy decisions. It is hard enough to solve problems when we use facts. It is nigh impossible when we don’t. The truth matters.

 

 

 

 

 

Tick, tick, tick – young folks please raise some holy hell on this

Tick, tick tick…the US debt of $20.7 trillion is expected to increase by $10 trillion by 2027 even before the December Tax Bill and last night’s Budget Bill were passed.

Tick, tick, tick…per the nonpartisan Congressional Budget Office and Committee for a Responsible Federal Budget, the Tax Bill is projected to increase the US debt by $1.5 trillion or so by 2027.

Tick, tick, tick…last night’s Budget Bill which has now been signed into law is expected to increase the debt by $400 billion over the next two years.

Tick, tick, tick…unless something is done about it, the debt will be close to $33 trillion in 2027. The scarier thought is that might be low.

Tick, tick, tick…the added dilemma we are facing is the interest rates are increasing, since we may have overheated a good economy. That will add further to the annual interest cost on the debt.

If I were in my twenties, I would be raising holy hell about this. I just called several members of the Freedom Caucus, telling them I am an Independent and former Republican voter. While they were right to raise issue with the $400 billion, I said it was hypocritical to vote for a Tax Bill that increases the debt by $1.5 trillion.

Invariably when I called I spoke with a nice young staffer in their twenties, because I asked them if they were. During our conversations I asked them “you do realize we are leaving this problem for you?”

In December, 2010, the US debt was over $13 trillion. The reason this date is important is the bipartisan Simpson-Bowles Deficit Reduction Committee presented their findings and recommendations in that month. In essence, they recommended a series of changes that followed a ratio of $2 of spending cuts to every $1 of revenue increases. Since Democrats did not like the former and Republicans the latter, the Committee’s good work was shelved.

Fast forward to today and not only have we not done much about it, we have made the problem worse with these two bills. In Congress, it is both parties’ fault. It is President Obama’s fault for shelving the Simpson-Bowles study and it is President Trump’s fault for not making this an issue and promoting tax cuts. It is President Bush’s fault for passing tax cuts against the advice of his Secretary of the Treasury after being handed the baton on a balanced budget.

Our deficit was $666 billion in the last fiscal year. It will be over $1 trillion at the end of this one. This is not good. Please let your Congressional representatives, Senators and the President know we need to do something about this. We need revenue increases and spending cuts. The math will not work otherwise. Please check out the websites for the nonpartisan Committee for a Responsible Federal Budget, Fix the Debt and The Concord Coalition for more information.

 

 

Are you going to believe me or your own eyes?

The man residing in the White House has basically told his followers that everyone else is lying, only believe me. By itself, that is a pretty audacious claim, yet when the man’s history is reviewed, truthful is not the word his biographers or business relationships would use to define the man. Yet, his fans still follow his lead.

It is very difficult to manage the response to three major hurricanes. Yet, don’t lie to people and tell them everything is going well in Puerto Rico, when it is obviously not. As the Mayor of San Juan said bluntly, “we need to get our shit together.” The better answer would have been for the man in the White House to say we have been slow to get help to people, but here is what we are going to do about it. This same Mayor was ticked off today when a DHS person said Puerto Rico is a “good news story.”

The same man is trying to ram a tax cut through that may offer some relief for middle class families, but who is he kidding? The percentage reductions for the top of the house are substantively more than for the middle class. Abolishing things like the estate tax (which already does not exist on the first $5 million of inherited assets) and the Alternative Minimum Tax (which is what most of these high earners pay) is a windfall. And, let us not look past the comment that a tax cut that will impact the debt by $2 Trillion will create sufficient economic growth to pay for that increase. If we can grow our way out of the problem, let’s cut the taxes to 0%.

The same man has echoed the party line that the ACA has failed, but there are a couple of things he is not letting on. It is not failing, but needs improvement. And, it could be doing even better if it were not for the sabotaging done by the man and his party. Premiums are even higher and carriers are fewer in part due to the efforts of the Republican Party leadership, including the man in the White House. The sad part is most Americans have no clue about this sabotoging role, but it is entirely true.

Finally, just a thought to consider. Why did the man in the White House refer to African-American protestors who civilly made a statement taking a knee during the national anthem as “sons of bitches,” yet made no such references to torch bearing White Supremacists chanting “blood and soil” and carrying Nazi slogans? Then, he said his words had nothing to do with race, yet that is why these men risked their careers by protesting.

On this latter point, my wife shared with me the comments of a third generation soldier. He said he, his father and his grandfather fought people who were not permitted to civilly protest their leadership in WWII, Korea and Vietnam. To him, to see the man in the White House criticize Americans for exercising their rights of civil protest, citing the reason to condemn them so as not to offend the flag or the military, is what this soldier fought against.