US Debt and the Roadblocks to Renaissance

It would be almost laughably easy to bring a real renaissance in the US.

But first you have to understand the real problem. It’s not a lack of stimulus… Or, the inequality of income distribution… Or because the feds didn’t regulate enough. Or that bankers are greedy…or that capitalism won’t work.

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Making (State Budget) Sacrifices

Much like the federal version, budgets at the state level are bloated. The fat needs trimming, yet few politicians seem able to muster up the will to do so.

For example, the Post-Gazette reports that “technically the [Pennsylvania] budget is balanced, critics said, but that balance depends on two shaky sources of revenue.” Those sources are $850 million in federal Medicaid funding that Congress hasn’t actually approved and a predicted 3.2 percent increase in tax revenue despite lower than expected tax revenue the past two years running.

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Failed Federal Budget Means Middle-Class Tax Hike Likely

Congress appears unable to pass the 2011 federal budget for the first time since the 1974 Budget Act. House Majority Leader Steny Hoyer (D-MD) essentially admitted the budget would put the nation on a path to hemorrhage trillions more than it has already bled out. Of course, there are only two ways to improve the nation’s broken budget: cutting back bloated spending and/or bumping up taxes… especially on the middle class… most likely meaning any individual earning less than $200,000 per year.

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The Duality of Politics

As we’ve pointed out before, there are two parts to a political system. One part is shrewd, calculating and corrupt. The other is stupid, senseless, and earnest. The first is surprisingly predictable. The second is predictably surprising.

Like the two sides of the brain, people use politics both ways. On the right side, they use it to do something that is completely preposterous…and often completely at odds with their own interests.

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Too Late to Beg From the Too Big to Fail

It’s a textbook case of when doing less is more. If the Obama administration had better kept its powder dry, instead of spending so profligately, it perhaps wouldn’t be stuck doing so much backpedaling.

Now the federal budget’s in pieces and it seems too late to be begging from the too big to fail banks.

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The Federal Budget is Not the Biggest Loser

On the TV show, overweight contestants take vigorous measures to lose excess weight, by cutting back on calories and increasing healthy exercise… all in pursuit of a cash prize. If only the feds were able to undertake a similarly austere strategy.

The federal budget isn’t really the showbiz-type of “Biggest Loser,” it’s more the traditional kind.

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