Raise Taxes & Cut Spending-Pay Off Federal Debt and Eliminate Interest Payments

During the Ford administration unemployment ranged between 8 and 9%. The public wanted new policies to deal with the crisis. Unfortunately financial deregulation by Jimmy Carter and his multiple course reversing economic policy stimulated inflation and decades of financial deregulation undermining the job and political security of the people of the United States.

Paying off the federal debt quicker; eliminating the federal budget deficit creates a two’fer bonus of saving on interest payments on the Federal Debt of near ¾ trillion dollars annually.

Congressional Republicans should compromise and raise taxes on those earning more than $250,000 annually, while Democrats should allow spending to be cut on pork barrel projects. Qualitative easing of federal budget outlays would improve the quality and efficiency of services provided with tax dollars-if a smarter congress can be found.

Eliminating federal debt and simultaneous creation of jobs with federal priority policy adjustments toward ecological economics may discomfit Wall Street abstract financial plundering of corporate material product realism. Yet no one in Washington D.C. may be capable of empirically rational economic leadership and able to eliminate the market inefficiency of the financial and banking sectors draining public and private sector capital. The Congress ought not tolerate extension of economic malaise with public indebtedness.

It might recall Long Term Capital Management’s risk aggregator calculation error and VAR assumptions that let John Merriwether and LTCM take on $125 billion of debt with just $5 billion in capital in 1998 (ref. page 278 ‘Age of Greed’ by Jeff Madrick). Government intervention was again required to arrange a rescue of the deregulated financial sector to prevent a cascade of collapse.

The government life disdaining traditional financial regulation and taxation since the Carter administration in preference for financial deregulation to the advantage of a predatory financial class isn’t good, yet they seem to move farther along that road of concentrating wealth and failing to invest adequately in real material national infrastructure all the time.