In January 2001, the U.S. budget was balanced for the first time in decades and the Congressional Budget Office was forecasting surpluses totaling $5.6 trillion by 2011. George W Bush than overspent by $6.9 Trillion…. in the process he:
1. forced energy prices up, by destroying Saddam Hussein and disrupting Iraqi suppression of OPEC power.
2. Allowed Bin Laden to escape and live in luxury within eyesight of those supposedly charged with seeking him out.
3. Encouraged the lending & housing Bubble which caused the current economic collapse.
4. Almost privatized Social Security – and certainly disrupted, or undermined, it by squandering the Trust Fund capital which was invested in Treasury Bonds … an investment the Republicans now want to default on.
The Republicans outsourced critical jobs – by encouraging tax breaks for companies and businessmen who moved their operations to other nations. The lowered taxes with promises that their actions would “would lead to higher revenues and would force lower spending” … House Minority Leader Steny Hoyer has pointed out, “They did neither.”
We are now in a weekend countdown with FOUR DAY left before the Republicans manage to undermine local economies around the nation … but doing what Bush failed to do: destroy the social security portion of the economy.
For those who do not understand how it works: Social Security is “Spending Money” – it is money paid to people who believed it would cover their retirement living expenses; it is pumped into the economy – a structural stimulus package which has been pre-invested for just this period in history. Every dollar spent will circulate locally 7 to 10 times before it leaves the community where the retiree resides. Give someone $1000 a month and you inject 7000 to 10000 into their community – at a grass roots level … you create a tide that rises and carries everyone up. At a multiplier of 7 to 10, every thousand dollars of Social Security generates $980 to $1,400 of revenue into the social security fund … In effect, Social Security (for those who need it to live on) social security income generates more income for the government than it takes … or it is a zero-sum expenditure. Unspent money goes to savings and funds personal debt (home loans). Medical – Medicaid & Medicare – have the same effect … they free personal income for circulation in the local economy, while, at the same time, providing funds to medical workers and improving the health of those retirees who wish to supplement their income by working, or do unpaid caregiver work … or, because they don’t themselves need caregivers, … allowing their families to work…
The Republicans have, consistently, opposed any effort to strengthen our economy … what they have done has been consistent … they promote:
“THE MOST HARM TO THE MOST PEOPLE”