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Showing posts with the label debt ceiling

You Don't Have To Pay Your Bills ...

     … if you are the United States of America. At least that's some many members of Congress seem to think. That's what the recent Debt Ceiling debacle was all about.      The U.S. does not borrow money to pay current expenses – it borrows money to pay items for which it is already obligated. If Congress wants to cut expenses, it should do so by curtailing spending through the budget process - not by refusing to pay bond-holders, government contractors and Social Security recipients, any more than an individual should just refuse to pay his mortgage or utilities.      The standoff was not a matter of the two sides being unable to reach an agreement; the idea that there was a disagreement was invalid from the start. It was similar to the case of a firefighter who lights fires because he likes to extinguish them.      Columnist Donald Kaul has come up with a good analogy:      The com...

It's The Jobs, Stupid

     The Labor Department's hiring report for May came out in Saturday's newspapers, and it wasn't pretty. Just 54,000 jobs were created – far less than the expected 150,000. Although the private sector added 83,000 workers – the lowest monthly total in the past year - they were offset by the loss of 28,000 jobs in local governments – firefighters, police, teachers and clerks. The Economic Policy Institute estimates that up to 300,000 new jobs a month are required to significantly affect the unemployment rate.      Meanwhile, back in Washington, the figures elicited what can best be described as a collective “ho-hum,” as Congress decided to dance around the subject of raising the debt ceiling. Without such action, the nation will soon begin defaulting on its debts, with a corresponding increase in interest rates. Through April, interest on the national debt for fiscal year 2011 is on track to surpass 2010's total of $4.13B. That's 413 followed by...