Relevant and even prescient commentary on news, politics and the economy.

Who foots the "grand deal (no capitalization on purpose)" costs.

by run75411 Who foots the “grand deal (no capitalization on purpose)” costs. Everything You Need to Know about the Fiscal Cliff Deal “Wonkblog” Zachary Goldfarb This was the model to describe what would happen if the Grand Deal increase in taxes fell upon those Household Taxpayers making greater than $200,000 (individual) and $250,000 (family) (Tax […]

There are no "per se" tax or spending caps: lame duck negotiations no place for Medicare/Medicaid cuts

 by Linda Beale There are no “per se” tax or spending caps: lame duck negotiations no place for Medicare/Medicaid cuts When George W. Bush got reelected with a minority of the popular vote and contested state counts, the GOP claimed a mandate to keep going with the fiscally irresponsible program of high military spending combined […]

The Media’s Role in Driving the "Fiscal Cliff" Imagery

by Linda Beale The Media’s Role in Driving the “Fiscal Cliff” Imagery The mainstream media has been fed a steady diet of releases from interested parties (like right-leaning propaganda tanks) about the need to adopt austerity measures, often cast as needing to save the country from out-of-control spending and unprecedented deficits and debt. At the […]

What the Fiscal Cliff Means for the Middle Class

by Kenneth Thomas What the Fiscal Cliff Means for the Middle Class Now that the election is over, it seems like all the politicians and pundits can talk about is the so-called “fiscal cliff.” But the chatter around the fiscal cliff is deeply weird, so in this post I will explain what it is and […]

Is it a fiscal cliff or merely a bump in the road?

by Linda Beale Is it a fiscal cliff or merely a bump in the road? Sixty percent of American voters in exit polls indicated that they supported higher taxes for the wealthy, see here.  Even some arch conservatives are acknowledging that some tax increases won’t do terrible harm.  Id. (noting that the Wall Street Journal’s […]

Lost Decades

Mike Konzcal reviews Lost Decades by Menzie Chin and Jeffrey Friedan at New Deal 2.0: What caused the housing bubble? This is a different, though related, question from what caused the collapse of the financial sector or why unemployment is sky-high right now. Why did housing value skyrocket and then collapse? More broadly, why did […]

Long term fiscal problems 2007…PGL

Angry Bear PGL wrote this post in 2007 reflecting the shape of politics and media soundbites of this current and constant election campaigning over the current two years to 2012 elections: In case Mr. Romney hasn’t seen my question. let me restate it. How will you address the long-run fiscal problem, that is, will you […]

Simon Johnson on the apparent new deal in politics

Baseline Scenario links to Simon Johnson’s thoughts on current practice of politics. Well worth the time to read and comment. Delusions Of Fiscal Grandeur by Simon Johnson If you honestly believe that investors will happily buy up any amount of US government debt (at low interest rates) for the indefinite future, then relax.  The tax […]

Nearing agreement says NYT

Nearing agreement says NYT An administration official said that in the emerging deal, the “Making Work Pay” credit would be replaced with a one-year reduction in payroll taxes for workers. In addition to a two-year extension of the income tax rates enacted under President George W. Bush, the deal includes a one-year extension of jobless […]