The Tea Party Lie about the Economy


imagesThey are bullies.  Their numbers are fake, but that really doesn’t matter.  The average Republican office holder is so out of contact with reality, that they actually think these bought and paid for tea party bullies speak for the majority of Republicans.  FYI – they do not. Fact is, they don’t even speak for much of a minority, any more.  They are a bunch of dupes, bought and paid for by Freedom Works, etc, which is basically a division of Koch Industries.  They’re mad at Lindsey because he dared expose Rand Paul for what he is.  They’re mad at John Kasich.   They’re basically mad at and terrorizing anyone they are told to destroy.

They have taken over the GOP.  Looks like they had their idiotic way with CPAC, and were abject fools.  What else can one expect from a bunch of tea party libertarians?  John Boehner has stated that there will be no more taxes.  Of course, not.  They have no reality, and ignore the actual facts of the issue.

Politicus USA
Politicus USA

Don’t ask for common sense, independent thinking, or reasoned actions. They don’t think for themselves. They don’t act independently.  They are a bought and paid for mob of bought and paid for pundits, bloggers, politicians, operatives, and then the losers of life.  They think that anyone who is not ultra wealthy is a drag on society, a taker.

“…“What I mean is the narrative of the last election,” he continued. “The 47 percent who are dependant on government, we don’t have to worry about them.”

“And I got to tell you, I can’t think of an idea that is more antithetical to what we believe to conservatives and Americans than that idea. Look, this country was built on the notion that anybody with hard work and perseverance can achieve anything. That’s why I’m a Republican… And what I think Republicans did a poor job of last time around is making the case to the single mom, making the case to the young African-American and the young Hispanic coming out of school looking for his first job that the party of opportunity is a party that allows and encourages small businesses to thrive, that encourages economic growth. That’s the message we didn’t carry.”

But, like Romney, Cruz seems to be making the mistake of conflating the 46.4 percent of Americans who pay no federal income taxes with a much smaller group of people who actually receive government checks.

As the Christian Science Monitor pointed out last year, only about 25 percent of Americans received an “entitlement” in 2010, a year with higher-than-average unemployment. The number could be as high as 35 percent if Social Security and Medicare are included, which arguably shouldn’t count because they are considered earned benefits.

Cruz suggests that the “47 percent” is made up primarily of single mothers, Hispanics and African-Americans, but The New York Times noted last year those voters were more likely to live in red states, and about 25 percent of those who paid no income taxes were exempt because they received Social Security. And over 20,000 household earning over $200,000 paid no income taxes in 2009 thanks to loopholes like exemptions and deductions….”

Why does the far right have a thing against Social Security and Medicaid?   They are living in a fantasy world, as projected by Paul Ryan who is working on a budget assuming Obamacare is going to be repealed.

“…“We’ve just run aground right there,” Krugman noted. “You’re facts are false. The Social Security thing — Social Security, it has a dedicated revenue base, it has a trust fund based on that dedicated revenue base. You can’t change the rules midstream and say, ‘Oh well, suddenly the trust fund doesn’t count.’” Johnson interrupted with the claim that “the trust fund is a fiction, it has no value in the federal government.” “It is important to realize that the facts that are being brought out here are, in fact, non-facts,” Krugman pointed out….”

The real problem with this whole mess is that Krugman is right and the right is wrong.

“…This is a double-barreled lie, based on the misconception that Social Security and Medicare are retirement funds. They’re not; they’re insurance programs. What you recover depends on your personal circumstances, but the point is they’re there when you need them.

The idea that the social insurance programs will impoverish today’s children while their grandparents make out like bandits was recently rehashed in a Wall Street Journal op-ed by former hedge fund manager Stanley Druckenmiller and two colleagues. “A typical third-grader will get back (in present value terms) only 75 cents for every dollar he contributes to Social Security over his lifetime,” they wrote. “Meanwhile, many seniors with greater means nearing retirement age will pocket a handsome profit.”

That isn’t true, according to C. Eugene Steuerle and Stephanie Rennane of the Urban Institute, whose 2011 calculations are the basis for most such assertions. They computed that a couple retiring in 2010 with annual earnings of $113,000 would have paid about $750,000 in 2011 dollars into Social Security over their working lives, and collect (on average) $665,000 in lifetime benefits. (The tax computation includes both the employee’s and employer’s share, and is adjusted for inflation and a small investment gain; the benefit calculation is also discounted for future inflation.)

Not exactly a “handsome profit,” but that’s how insurance works. Some people will die two years into retirement, others will live to 100. Some families will be sustained by Social Security, some will collect disability pay, some will receive dependent benefits, some won’t need any of those payments. But no other public or commercial insurer provides all those potential benefits at Social Security’s low cost….”

Think Progress
Think Progress

The deficit is shrinking.

“...The deficit is shrinking, and regardless if it was growing, it doesn’t hamper business, or job creation, or affect day to day Americans’ lives or their economic freedom. However, in their drive to cut spending to shrink government teabaggers support killing jobs that does affect every American with loss of services as well as revenue that starves government which is men like the Koch brothers’ goal because less government means fewer regulations and more opportunities to step in and privatize government services like education for a profit. The billionaire Kochs are joined in their drive to starve and privatize the government by the Republican Party, and billionaire corporate CEOs and their campaign to “Fix the Debt” with their message that America faces an existential debt crisis that must be solved immediately regardless their profits are unaffected by the nation’s debt or spending.The truth is that if there was a budget surplus and no national debt, businesses, corporations, or Americans would not be any better, or worse, off than they are today any more than the debt and deficit impacts a corporation’s business or obscene profits. When corporate leaders, Republicans, and deficit hawks decry the debt or deficit, their goal is shrinking government; especially regulatory agencies and the government’s ability to operate making room for privatization and corporate takeover….”


The GOP is now the party of protecting the rapist, and a war on women.  How can one possibly expect anything else out of a party which doesn’t quite understand the concept of no meaning no.  If Paul Ryan cannot grasp that the American people said NO to he and his loser running mate, then how can you expect tea party ‘patriots’ to grasp the concept of no, for anything else?

Jared Bernstein asked a question that does plague The Pink Flamingo.  Why on earth does anyone still take Paul Ryan seriously?  Why?  He’s a joke. The is no debt crises, even Paul Ryan has admitted as much. So, why does anyone still listen to him?

The far right is not paying attention to what is going on in Europe.  Thanks to the EU and austerity, now, another country is in danger of collapse. Thanks to fast money, and get rich quick, Cyprus is now the new poster child for financial disaster.  Once again Germany is making demands, and those who are not as powerful are caving.

“...This decision is ultimately a very mixed bag. On the one hand the Eurozone has taken a radical step to try and put debt on sustainable footing rather than just proceeding with a massive taxpayer funded bailout (although it must be remembered Cyprus is still getting a bailout worth almost 60% of GDP). That said, the decision to force the losses on all depositors is a radical and politically explosive one. The fact that losses were not enforced all round, on banks and funds, leaves a bad taste in the mouth. On a wider scale, the fact that Germany is no longer willing to provide bailouts at any cost must mark a big change in the crisis. With Italy and Spain still mired in political and economic problems this point will surely be in the back of their minds from now on. Can German approval of access to the ESM and OMT be taken for granted anymore? It may be that Cyprus is small enough to be a special case, but that cannot be a given….”

Sure, this is tiny Cyprus.  Why worry here?

There’s a very good reason why anyone in this country, where the Koch Machine controls Congress should worry.  The far right, here will do anything to protect big money, including having already impoverished the rest of us.  This is what has happened in Cyprus.  To protect big money, they are destroying the little people.  This is what happens when the ultra wealthy take control over everyone.  It isn’t that they are evil, it is just that when one segment of the population controls the rest, we all suffer.

In These Times
In These Times

Here in the US, we don’t have a debt crises.  We have a taxation crises because the ultra wealthy are not paying the same percentage income tax as everyone else.  If they were paying what everyone else were paying, we wouldn’t be in this mess.

I can’t believe I’m quoting Robert Reich, but I am!

“…The government’s finances are not at all like a household’s. In fact, it’s when American families can’t spend enough to keep the economy going, because too many of them are unemployed or underemployed and have run out of money, that government has to step in as spender of last resort — even if that means taking on more debt. If government doesn’t fill the spending gap, an economy can collapse into deeper recession or depression, pushing unemployment far higher. Look at what austerity economics has done to Europe. ….Republicans want Americans to believe government budgets are like family budgets that must be balanced because the analogy helps their ideological aim to “drown the government in a bathtub,” in the memorable words of their guru, Grover Norquist. As long as there’s a debt and balance is the goal, shrinkage is the only option — if tax increases are ruled out. …”

Let’s put it this way.  The GOP has over-calculated.  Even Paul Ryan is no longer appreciated within the GOP. He’s made a mess of things, incompetent, imploding.  The GOP would be smart if it would adopt Paul Krugman’s economic practices and be done with it.

The real problem here is the fact the economy is improving.  No thanks to the GOP, we are involved in what is now obviously an economic recovery, thanks to Barack Obama.  Oye.