DAILY NEWS ROUNDUP- AUGUST 29TH, 2012
Wednesday, August 29, 2012
By Morgan Currier
In today’s news highlights, check out a clip from the Washington Post below. No, that’s not a four-layer cake, that’s the national debt. This might be the one time we actually don’t want more dessert.
Washington Post, Ezra Klein, 8/28/2012
On the Republican convention stage tonight, you’re going to see a really large clock. But the clock isn’t for keeping time. The idea isn’t to stop speakers from going over their allotted time, or the convention from running late. It’s a debt clock. And the idea is to blame President Obama and the Democrats for the national debt.
But in doing so, the Republicans will end up blaming Obama for the policies they pushed in the Bush years, and the recession that began on a Republican president’s watch, and a continuation of tax cuts that they supported. They’ll have to. Because if they took all that off the debt clock, there wouldn’t be much debt there to blame him for at all.
The top layer, the orange one, that’s the Bush tax cuts. There is no single policy we have passed that has added as much to the debt, or that is projected to add as much to the debt in the future, as the Bush tax cuts, which Republicans passed in 2001 and 2003 and Obama and the Republicans extended in 2010. To my knowledge, all elected Republicans want to make the Bush tax cuts permanent. Democrats, by and large, want to end them for income over $250,000.
In second place is the economic crisis. That’s the medium blue. Recessions drive tax revenue down because people lose their jobs, and when you lose your job, you lose your income, and when you lose your income, you can’t pay taxes. Tax revenues in recent years have been 15.4 percent of GDP — the lowest level since the 1950s. Meanwhile, they drive social spending up, because programs like unemployment insurance and Medicaid automatically begin spending more to help the people who have been laid off.
If we didn’t have all that? If there’d been no Bush tax cuts, no wars, no financial crisis and everything else had been the same? Debt would be between 20 and 30 percent of GDP today, rather than almost 100 percent.
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