I'm writing today to beg you to get Democrats together and tell the President that he will not solidify a win in the 2012 election by pandering to anyone who thinks huge spending cuts and lower corporate taxes are what will fix our economic crisis. And it's not just that he won't ever win over these people's votes, it's that it's TERRIBLE FISCAL POLICY that risks utterly devastating our economy. It's extremely IRRESPONSIBLE!
A Devastating Look At Obama's Economic Policy Strategy
- "Mr. Plouffe and Mr. Daley share the view that a focus on deficit reduction is an economic and political imperative, according to people who have spoken with them. Voters believe that paying down the debt will help the economy, and the White House agrees..."
This is INSANITY. If the White House agrees that paying down the debt and lowering what are already among the lowest effective corporate tax rates among industrialized nations, and certainly the lowest in our nation's history, during a balance sheet recession will help the economy, I will have truly lost faith in this president to lead.
He is a brilliant man. You and he together had one of the most productive Congresses in 50 years prior to Republicans regaining control of the House. I am not one of those people who thinks our president has "caved" or "capitulated." Quite the contrary, in fact. I think he has pulled the wool over the Republicans' eyes repeatedly, making them think they got the better of him even though they actually got destroyed.
But I cannot sit back quietly and watch as this otherwise genius president considers making policy decisions that are downright dangerous according to every knowledgeable economist on the planet.
Richard Koo: The Ratings Agencies May Destroy The Global Economy Once Again
- "[E]xperiences demonstrate that during a balance sheet recession, when businesses and households are struggling to deleverage, the correct policy—fiscal stimulus—is exactly the opposite of what is needed under normal circumstances. Active application of stimulus will ultimately minimize the fiscal deficit.
- Standard & Poor’s does not understand this [and apparently neither do David Plouffe (when did he get an economics degree?) or Bill Daley] and says America’s AAA* rating may be restored if the government succeeds in trimming its deficit by $4trn. The adoption of such a policy by the US government today would plunge the economy into another Great Depression."
AUSTERITY DOESN’T SHRINK THE DEFICIT IN A BALANCE SHEET RECESSION…
- "Despite the continuing woes in Europe there are still people out there who think the USA should cut off its arm in order lose weight. Well, that’s not quite how it works during a balance sheet recession. During a balance sheet recession the reduction in private sector aggregate demand leaves a hole in the economy. As we know from the sectoral balances, someone must spend because the private sector’s savings (which they now demand due to high debt levels) must come from the foreign sector or the government sector. It doesn’t just magically appear out of nowhere. And if the government folds up shop we get what is happening in Greece. The latest news shows that austerity is failing miserably."
Now is NOT the time to allow Republicans and people who do not understand macroeconomics to dictate policy. THIS is the time when we need to EDUCATE the public on how things REALLY work. Americans are already furious that Big Corporations are paying nothing in federal taxes, but the president wants to cut their tax rate even further?
Stop Pandering To People Who Don't Know What They're Talking About!!
I'm BEGGING you to bring this party together and stand strong against these DANGEROUS policy decisions BEFORE they happen.
Feel free to copy and paste this entire letter if you please
"How wonderful it is that nobody need wait a single moment before starting to improve the world." ~ Anne Frank