Tag Archives: budget deficit

business news, economic news, local news

What happened to the budget deficit?

I want to discuss briefly on this blog an issue that once stood as the hallmark of conservative Republicans’ policy, but which has been buried under an enormous mountain of rhetoric … and money.

Republicans used to proclaim themselves to be “deficit hawks,” meaning that they detested the idea of spending more money than the Treasury had in hand for the government to operate. I’m sitting in my North Texas home at this moment thinking of the 1980 presidential campaign between President Carter and former California Gov. Ronald Reagan. Carter was saddled with a $43 billion shortfall in the budget, giving Reagan, the GOP nominee for president, ample ammunition to use against the incumbent.

That issue, along with the Iranian hostage crisis, paved the way for Reagan to score a massive landslide victory over Carter.

The $43 billion figure today seems quaint. Why? Because the deficit being run up by the current GOP POTUS tops — oh, hell, I don’t know — something in excess of $2 trillion. And that number is growing because of demands by the Pentagon to add another $1.5 trillion to fight a war with Iran that Trump says we’ve already won!

What the f***?

This quote has been ignored in recent years, but Trump once described himself during his run for office as “king of debt.” Well, His Majesty the Debt King has demonstrated that he doesn’t give a damn about predictions from earlier Republicans about what these deficits — and the spiraling national debt — will do to our nation’s long economic future. They said during the Obama years in the White House that the debt will destroy our economy.

The GOP thought today? BFD, man.

Therefore that makes Donald Trump the RINO in chief. He’s no real Republican … but just talks a good and fraudulent game.

economic news, national news

Shut up, Donald, about that bribe

Donald Trump’s offer of a $5,000 “dividend” to every living U.S. citizen he would pay if the midterm election turns out the way he wants it is nothing more than a bribe … so that’s what I will call it from this moment forward.

Accordingly, I just wish Donald would cease offering the bribe by yammering through his overfed pie hole.

House Speaker Mike Johnson said the bribe requires a congressional vote to become legal. It won’t ever get that far.

A bribe is what we all know it to be. It is a payment to someone who does someone else a favor. Trump’s poll numbers are taking faster than an ocean liner that hits an iceberg. Donald knows it, even if he doesn’t acknowledge it. The bribe is meant to give those who reside in MAGA Land a glimmer of hope that Donald can actually deliver the goods. He cannot.

There once was a day when real Republican conservatives railed at the thought of a budget deficit. Remember when Ronald Reagan chided President Carter during the 1980 presidential campaign for running the government on a deficit that totaled $43 billion? It scored enough political points to carry him to a landslide victory. Trump’s deficits have been running consistently in the trillions of dollars. Sending bribe money out to every American is going to blow an even bigger hole in the deficit and add another $1.4 trillion to the national debt.

Donald Trump is a feckless fool for even suggesting such a thing. He ought to shut his trap.

And concentrate on ending that idiotic war in Iran.

economic news, national news

GOP is finding some backbone?

Lo and behold, great day in the morning and whatever exclanation you can recall! Republicans in Congress might have discovered their backbones and are stiffening them in a fight against Donaldl J. Trump and his “big, beautiful” tax and budget bill.

What has happened to these men and women? They have rediscovered the mantra their forebears used to recite to beat the daylights out of their Democratic opponents, which is that budget deficits and spiraling national debt are unsustainable.

U.S. Sens. Ron Johnson and Rand Paul have just signed on as “no” votes for Trump’s bill. It is looking for all the world as if the bill might be doomed. There are a few others who’ve also joined with their Democratic colleagues in opposing the legislation.

There’s a certain irony, of course, in Democrats opposing the bill on the grounds of deficit and debt expansion. Democrats used to scoff at GOP concerns over the deficit. Republicans led by Ronald Reagan blasted Democrats to smithereens because during the 1980 fiscal year, Democrats were calling for a deficit — get ready for it — of $43 billion! That amount today would hardly amount to anything.

The annual budget deficit is now in the trillions of dollars. The national debt has grown more under the Trump administration than during any other administration in U.S. history.

It is sounding to me as if congressional Republicans are getting the hint, based on their town halls and the ire they are hearing from constituents, that Trump’s notions aren’t worth backing.

What do you know about any of it?

economic news

Economy is strong … period!

How in the world does one deal with the fearmongering on the right wing of the political spectrum that keeps fomenting the lie that our national economy is headed for the crapper?

President Biden keeps seeking to remind us of several undeniable facts: joblessness is at a historic low; new jobs are pouring in; business continues to make astounding profits; inflation is subsiding; the national budget deficit is shrinking; the national debt is receding, too.

It’s falling on deaf ears on the right. The right-wingers are looking for any advantage they can find as they seek to run against the president. They are fomenting yet another lie, that the economy is tanking.

Listen up, folks: The economy is not heading for the tank! The economy is showing remarkable resilience! Its strength is presenting itself almost daily!

I am going to use this blog to try to disabuse those who want to believe the liars that the economy is set to be flushed away.

It is not!

johnkanels_92@hotmail.com

economic news

Biden budget = political weapon

Let’s put it all on the table: President Biden’s announcement of a new federal budget proposal is aimed at a political audience, not at anyone in Congress who he can persuade to join him in the effort to advance the “values” he espouses.

Joe Biden ventured to Pennsylvania to unveil a budget he says will cut the federal deficit by $3 trillion over the next decade. That is, to borrow a phrase, a Big F****** Deal.

He wants to raises taxes on rich Americans and corporations. He wants to preserve Medicare, Social Security, Medicaid, the Affordable Care Act. The president wants to shore up our military, our national intelligence network, the fight for Ukraine’s sovereignty. Biden wants to make community college attendance free.

Is this going to fly with what he referred to continuously today with the “MAGA Republicans”? Not a chance, man!

Instead, he has laid out a predicate for his 2024 re-election effort, which many believe he will announce soon. President Biden is going to put congressional Republicans on record as opposing the very things he said he wants to do.

I am all in with what he wants to accomplish.

Of course, looming mightily over all this is the threat by Republicans to crash the world economy by allowing the United States to default on the national debt that it has accrued since the beginning of the Republic. The president made that point, too, telling Republicans that they had a hand in running up that debt and that the U.S. Constitution requires the nation to maintain its “full faith and credit.”

Republicans, particularly the know-nothings who comprise the MAGA cabal, need to understand that they cannot mess with the national debt without collapsing the entire world economy. Got it? They had better!

President Biden’s budget as he has presented it won’t get through Congress. A big part of me believes the president — who knows how Congress works — understands that, but he has thrown down the gauntlet and dared the GOP to pick it up.

johnkanelis_92@hotmaial.com

national news

McConnell said … what?

(Photo by Salwan Georges/The Washington Post via Getty Images)

Mitch McConnell said it, but I still cannot believe I heard it with my own ears. The U.S. Senate Republican leader spoke about the need to raise the national debt limit, that it is essential for the nation to maintain its standing with creditors.

Then he said that it’s a “Democrat problem,” and that he wouldn’t support to raise the debt limit.

I heard it. I shook my noggin. I cannot believe that the Kentucky Republican would actually such a thing. But … he damn sure did.

McConnell is leading the Senate Republican caucus in its effort to obstruct anything and everything his Democratic colleagues want to do legislatively. He also has become something of a sworn enemy of President Biden, his one-time Senate friend and occasional ally.

Now he is playing craven politics with what should be a bipartisan effort. Democrats want to enact an infrastructure rebuilding plan. It costs trillions of dollars. Republicans are having none of it. They contend that it’s too costly, that it would pile on more debt.

Strange, yes? Yes, given that Biden’s immediate predecessor — a Republican — rang up the biggest annual budget deficits in history and piled on more debt than any president who came before him. The GOP caucus had no problem with that. Now, it does.

Except that the Senate GOP leader recognizes that the debt ceiling is an essential part of governing. However, he will not — or cannot — commit to doing what he knows he should do.

Mitch McConnell has become, without question (in my mind), the master of hypocrisy, duplicity and covering his own backside … to the detriment of the greater good.

johnkanelis_92@hotmail.com

national news

Now the deficit matters?

By John Kanelis / johnkanelis_92@hotmail.com

Listening to Republican members of Congress bitch about the possibility of running up the federal budget deficit because a Democratic president wants to invest in our infrastructure makes me want to laugh, scream and cry … all at once!

Only now does the ostensible party of fiscal restraint choose to raise its voice against the cost of infrastructure overhaul. Puh-leeze.

President Biden is planning this week to meet with Republican congressional leaders to seek a compromise. Biden wants to spend $2.2 trillion on various projects including infrastructure; the GOP has come back with a $568 billion proposal that focuses more intently on roads, bridges, airports, ship channels … those kinds of things.

Yes, that’s a big gap. The GOP is yammering about deficit spending after approving a big tax break for rich Americans when Donald Trump was president. The tax cut helped run up the deficit and, of course, the national debt.

Where was the outrage then? Hmm. I heard them crickets, man.

I do hope President Biden can bring his immense negotiating skills to bear when he meets with his Republican friends. I also hope he can persuade them of the importance of employing government to work for the people who pay for it.

economic news

Deficits no longer matter?

By JOHN KANELIS / johnkanelis_92@hotmail.com

About the only conclusion I am able to draw about the current federal government fiscal debate is that the numbers have gotten so big that mere human minds no longer can grasp their meaning in ways that make any sense.

I refer to the federal budget deficit.

The government is now spending more than $1 trillion more than it has on hand on various and sundry programs. There used to be a time when Republicans railed heavily against Democrats’ tendency to spend more than they had in till. Then along came President George W. Bush, who cajoled Congress to enact tax cuts while fighting an international war against terror.

Bush took over the presidency when the budget actually ran a surplus! That all changed during the Bush years. The deficits mounted. Indeed, Vice President Dick Cheney once said famously that deficits “no longer mattered.”

The economy cratered near the end of Bush’s time. President Barack Obama sought to rescue the nation. He poured even more money into the deficit sinkhole. The deficit kept growing. Then the economy bounced back. Tax revenue helped cut the annual deficit by more than half by the time Obama left office.

Then along came Donald Trump, the self-proclaimed populist. He and his GOP allies rammed through a big tax cut. However, he kept spending money. The deficit piled up once again. It surpassed the trillion-dollar annual mark by the time he left office.

Now it’s President Joe Biden’s turn. The pandemic has all but wrecked the economy. Biden has pushed through a big COVID relief package. Now he wants to spend another $2.25 trillion over 10 years on infrastructure. He wants to raise taxes to help pay for it. Republicans aren’t buying it.

But … the deficit! What about the deficit?

I am a deficit hawk. I seriously dislike spending money we don’t have. I cannot do so in my home. Then again, I cannot print money at will, either.

My best guess at this moment is that deficit spending is so out of control that the bean counters have thrown up their hands in surrender.

business news

GOP turns hawkish on deficit

By JOHN KANELIS / johnkanelis_92@hotmail.com

Someone needs to explain something to me.

Congressional Republicans saw no problem with running up a federal budget deficit when a president of their own party pitched a massive tax cut that would necessarily run that deficit into the stratosphere.

Now their guy has lost an election and the new president, Joe Biden, wants to enact a hefty package aimed at providing relief to Americans suffering from the COVID pandemic.

Republicans’ response? No can do, they say, because it would — get set for it — run up the deficit!

OK, so why is it that one deficit-explosion notion is OK but another one that would cost a huge sum of money to help Americans is not OK? What gives?

I know the answer. It’s politics. That’s all it is.

Yet there can be little doubt we’re going to hear the GOP blame Democrats for “playing politics” with COVID relief. It’s their mantra. Their siren song.

President Biden is pitching a $1.9 trillion package that includes a $1,400 payment to Americans who qualify for it. It also expedites delivery of vaccines to states. Its aim is to jumpstart the economy while seeking to turn the tide against the pandemic. Does it spend more money that the government does not have on hand? Yes.

Let’s look back briefly. Joe Biden became vice president in 2009 as the national economy was in free fall. He and President Obama came up with a massive relief program that bailed out the auto industry and helped shore up a collapsing financial industry. It, too, boosted the deficit.

What happened next? The economy revived. More Americans went to work. The deficit that skyrocketed began to recede. By the time the Obama-Biden administration handed it over to the Donald Trump, the deficit had been pared to less than half of what it was when Obama took office in 2009.

I will await an explanation for why congressional Republicans suddenly have resorted to their game of fear about bold initiatives.

national news

Obama weighing in — finally! — on the 2020 election

Barack Hussein Obama is speaking out, labeling Donald John Trump’s response to the coronavirus pandemic as “chaotic,” and criticizing the Justice Department decision to forgo prosecuting an admitted perjurer.

So, you might ask: What is a former president doing here? Isn’t it “normal” for a president to remain quiet about how his successor is doing? Sure it’s normal. Indeed, President Obama has been quiet.

Except for this: Donald Trump keeps invoking his immediate predecessor’s name, criticizing his policies and declaring — mostly without justification — that he has fixed the things that Obama got wrong.

A leaked phone call to a group called the Obama Alumni Association has the former president describing Trump’s response to pandemic as “chaotic” because Trump has been too preoccupied with “what’s in it for me?” rather than fixating on the problem and the suffering of his fellow Americans. Obama also is going all-in for Joe Biden, the presumptive Democratic nominee and vows to work as hard as he can to ensure Biden’s election this fall.

I normally would take some alarm at a former president playing such an active role in a campaign involving his immediate successor. However, Trump — as I have noted — brought all this on himself by continually seeking to denigrate the service that Obama rendered during his two terms as president.

A quick review: Obama inherited an economy in free fall; he pushed Congress to enact stimulus packages to rescue the economy; the nation began a 10-year job-growth climb; he ordered the commando raid that killed Osama bin Laden; the State Department negotiated a deal to deny Iran access to nuclear weapons; he reduced the annual federal budget deficit by two-thirds; he handed Trump a robust economy.

Trump, though, doesn’t see it that way. So he keeps seeking to criticize Obama.

Now it appears that it’s game on for the former president.

Hey, I don’t hide my affection for the former president and my disdain for the current clown masquerading as president. Thus, if the current White House occupant wants to invoke President Obama’s name continually, well … bring it. I’m quite sure Barack Obama can find plenty more to say in response.