AlterNet / By James K. Galbraith
6 Reasons the Fiscal Cliff is a Scam
November 22, 2012 |
Stripped to essentials, the fiscal cliff is a device constructed to force a rollback of Social Security, Medicare and Medicaid, as the price of avoiding tax increases and disruptive cuts in federal civilian programs and in the military. It was policy-making by hostage-taking, timed for the lame duck session, a contrived crisis, the plain idea now unfolding was to force a stampede.
In the nature of stampedes arguments become confused; panic flows from fear, when multiple forces – economic and political in this instance – all appear to push the same way. It is therefore useful to sort through those forces, breaking them down into separate questions, and to ask whether any of them justify the voices of doom.
First, is there a looming crisis of debt or deficits, such that sacrifices in general are necessary? No, there is not. Not in the short run – as almost everyone agrees. But also: not in the long run. What we have are computer projections, based on arbitrary – and in fact capricious – assumptions. But even the computer projections no longer show much of a crisis. CBO has adjusted its interest rate forecast, and even under its “alternative fiscal scenario” the debt/GDP ratio now stabilizes after a few years.
“While We Were Sleeping”
Orwell Rolls In His Grave, featuring MCM – Buy the DVD
About News From Underground
News From Underground is a daily e-news service run by Mark Crispin Miller, a Professor of Culture and Communication at NYU. It is based on his belief that academics, like reporters, have a civic obligation to help keep the people well-informed, so that American democracy might finally work.
If you'd like to receive updates delivered to your inbox daily, sign up for News From Underground Alerts:
Help News From Underground!
Message from Mark: "I am a one-man operation, although assisted greatly by some volunteers, and, now and then, by people paid by others for one-time projects. There is no shortage of skilled, dedicated folks out there who want to help me. There is, however, nothing I can pay them with, unless you decide you can contribute something."
Please donate via the PayPal button above or via PayPal by email to: firstname.lastname@example.org
- US cops snatch hundreds of millions—legally—from motorists who’ve done no wrong
- Koch fiends in Wisconsin Senate poised to scrap 48-hour wait before handgun purchase
- Comcast throws in the towel, won’t eat Time Warner after all
- “Why Obama Should Pardon Don Siegelman” (Jeffrey Toobin in The New Yorker!)
- California’s not the only one: 40 states will start going dry in next ten years
- FBI charged with “whitewash” of Saudi link to 9/11 on
- TEPCO slammed for year-long cover-up of latest radioactive leak on
- If Jeb Bush steals the White House, he’ll cut Medicaid, raise the retirement age, means test Social Security, and…. on
- Don Siegelman won’t be released from prison (WHY won’t Obama pardon him?) on
- Democrats won’t say a word about high-flying pedophile (and FOB) Jeffrey Epstein—and neither will Republicans! (How come?) on
- Don't buy these products from Koch Industries!
- NY Fed moving to Chicago, Feds stocking up on ammo, NORAD hunkering down: What's up?
- Forbidden Bookshelf
- The strange death of Nancy Schaefer (two items)
- Update on the strange death of Nancy Schaefer
- Words of Power
- Suburban Guerrilla
- Online Journal
- The Rude Pudit
- Barry Gordon
- Evil GOP Bastards
- The International Human Press
- Thom Hartmann
- Media Channel
- t r u t h o u t
- Democratic Undergroud
- alias Bruce
- Citizens for Legitimate Government
- History Unfolding
- Writers Voice
- The Ostroy Report
- Richard Charnin
- Mainstream Baptist
- Fairness & Accuracy in Reporting
Need a bigger font size?
- Your link could be here too, contact us for pricing details.