You seem to be confusing stimulus at a time of economic crisis with social spending without funding. If we are going to invest in ourselves, then we should bloody well pay for it (i.e. RAISE TAXES). We've already seen what reckless borrowing does in other economies.
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Our currency is fiat, we can no more run out of money than a bowling alley can run out of points. The operating constraint is inflation, not debt, and inflation isn't a factor at the moment.
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The Federal Reserve controls the money supply; the Federal Treasury does not print revenue. The US raises money for deficit financing by floating bonds and we must pay interest on those bonds. Again, it wiser and easier to use progressive taxation.
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Can someone PLEASE explain to me why this is bad?https://www.cbpp.org/research/federal-budget/policy-basics-the-pay-as-you-go-budget-rule …
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it artificially shackles us to GOP priorities
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I thought it willfully shackled us to not making us go bankrupt. Also, can’t they waive it in any case they deem neccessary? That’s how I read it.
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Margi, the theory behind why PayGo is bad is that 1) the government can't go bankrupt, since it issues the currency, and 2) Republicans ignore debt/deficit spending anyway, so PayGo just means that their priorities get funded and ours don't.
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Ok I hear your theory but it doesn’t sound like a concrete truth. I’m not saying Paygo is wonderful, I’m saying it’s a red herring or a McGuffin in the so called “more progressive than thou” wing of the incoming DEM freshmen. Let me find that article again to double check.
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Honestly, it would prevent large parts of the progressive agenda. (The
#GreenNewDeal is nearest to my heart.) I don't think progressives want to exclude anyone or appear "holier than thou." We welcome everyone! -
Green new deal will not happen without DEMS being in charge of all 3 branches. I hope everyone gets that. We’re talking 2022.
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Amen to that! But we can at least get some messaging bills on the table, and perhaps get some action. Love you for asking all these questions! And sorry to flood your in-box.
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Vote no,
@SenateDems and@HouseDemocrats !! This is major and would be a huge assault on income equality. I regard any Democrats who vote for#PayGo as against us rather than for us - 1 more reply
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If the market has to absorb more of the debt that issued then their is less money to make other investments. Plus if China continues to dump our bonds and by less of them, who will be our biggest buyer of debt?
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First, that is absolutely not true. There is no fixed supply of money for investment; banks create money for loans from thin air. Second, China doesn't just sell bonds and hold dollars instead. They sell the dollars to somebody else, then those people buy bonds with the dollars
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Who said anything about fixed supply of money? When you issue more govt debt to pay for things there is less money to go into other investments if that debt is going to be serviced.. That doesn’t mean there is less supply money.
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Oh, I see, I thought you were talking about private investment, but you're talking about gov investment. That's not true either - the gov is the issuer of the currency, it can always make any size payment. Under current rules, nothing about larger debt service automatically
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reduces other spending or raises taxes. That only happens if Congress votes for it, which, by and large, they do not do. Larger debt service just means the gov is spending more - which in our current economy, is probably a good thing.
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