Daisy Said:

In his weekly radio address, 0bama accuses the GOP?

We Answered:

he is just a miserable failure!!!

Leah Said:

Do you understand these conservative economics arguments?

We Answered:

The problem with the debt is obvious - the more money used to pay the debt, the less we have for all other spending whether you think it is needed or not. A very valid concern. The problem is, right now, that spending is the major factor keeping what is left of the economy afloat. Stop it suddenly and we will fall further back into recession or possibly even depression.

The politicians know this but are just playing games for November elections and hoping their base will turn out to re-elect them. They are not going to do anything anyway for a year or two because the political system is set up to move very slowly. This lets them pay lip-service without having to perform. Immediate changes would totally wreck what's left of the economy. Maybe two or three years down the road, it won't be as bad and some reforms can be passed that phase in to reduce the debt, but they will not state it that way. However, the conversation has begun.

Unemployment benefits argument is just stupid for this situation. The true argument is at the margins (the reaction of 1 or 2 unemployed people to receiving benefits - not the entire population of those getting checks), if the benefit payments are high enough and the window to receive benefits long enough, a person may want to continue receiving benefits until the benefits are exhausted rather than go to work a week or day before benefits are used up. This cost state and local governments money, sometimes business are taxed based on unemployment in some areas. It can save money to have a short benefits window and low payments not just because of the obvious, but because more people will take any job because that is better than the benefits. Then the taxes go a little further because the potentially unemployed person is paying a little more in than they otherwise would. What to set the rate at to maximize social welfare is a constant struggle.

The problem is, the marginal thinking in the case I just mentioned revolves around an assumption that job is available but remaining open because of high unemployment benefits. It doesn't work if their is no job available. It falls completely apart. That is the case in this recession. The politicians know this and will pass it because their argument holds no water right now. It was all for show and posturing for November.

The thinking with tax breaks is about campaign contributions. The wealthy are the primary financial supporters for the republican party. This is a campaign promise to raise donations, not a way to reduce national debt. Concerns about national debt is secondary to personal and political wealth for politicians. Remember, the supreme court struck down some rules governing contributions by big companies, so republicans especially are ready to capitalize on the ruling.

Another thought for many republicans is that some of the crumbs from the wealthy will fall and the poor will benefit (trickle down). So making sure the wealthy are "well fed" helps the poor. This was Regan's economic philosophy. Protect the wealthy and you'll help the poor. There is some truth to this, but as with everything, it can be taken to unreasonable extremes. In truth, it is very hard to define the "reasonable" balance because it is constantly changing and the political process is very slow to respond. The competitive free market responds best. Note that the competitive free market is NOT the same thing as pure capitalism. The free market constrains pure capitalism in order to maximize social welfare, not just the welfare of a business. That is why the recession is so bad - Wall Street stray from the competitive free market and reduced the benefit to society while increasing their benefit. Getting to the balance that best maximizes social welfare (this includes the welfare of businesses and individual citizens) is very difficult an the push is always maximize MY welfare - not society's' - so Wall Street acted rationally, but the government fell short on it's role to be sure that all the players in the economy followed competitive free market rules - mostly as a result of lobbying by organized business groups tipping the scale in their favor. Now there is an effort to re-balance the scales. This tension is required for the system to work, but adjustments are not immediate or painless for business or individuals. This is part of the process.

The republicans are gambling there is enough time before the election for most average voters to forget the unemployment benefit fiasco while reminding their hard-core wealthy base using a wink and nod that they are out to help them. Opposition to cap and trade is just part of the wink and nod. Well see how voters react in the Fall and again two years after that. This is also part of the process - adjust, then adjust again. It is a continuous thing - like a swinging door - that makes the system work despite the chaos. It is just slow and maddening.

Javier Said:

Should Congress extend Unemployment Insurance?

We Answered:

It's only the Republicans of Congress that are fighting extending unemployment benefits. They've even been rude enough to call the unemployed Hobo's. Thousands of jobs are lost every day. Our economy is sinking into quick sand, our financial institutions are screwing us with their outlandish interest rates, health insurance premiums goes up and allowed services become less. I really wonder what the Republican unemployed feel about this? I think that the Republicans continue to shoot themselves in their feet, even though they started all this and they will pay dearly in November, while they continue to fool themselves into thinking they're they're going to take back power. They have a rude awakening coming.

Alvin Said:

Is Barack Obama really trying to claim extending unemployment benefits is economic "progress"?

We Answered:

The fact is, most economists agree that extending unemployment insurance is one of the single most cost-effective ways to help jumpstart the economy. It puts money into the pockets of folks who not only need it most, but who also are most likely to spend it quickly.

Tim Said:

Does anyone outside the mainstream media and the left consider Limbaugh & Cheney to be the leaders of the GOP?

We Answered:

They are both a disgrace to the true conservative base.

If they represent the GOP, then I - a conservative libertarian - want NOTHING to do with them.

Lillie Said:

How many Americans agree w/ Scott Brown that Obama's push for Obamacare is "bitter, destructive and endless"?

We Answered:

agree

by going against the will of the people, Obama has become a
traitor to our Country