The bad economics of PAYGO swamp any strategic gain from adopting it
Cold Mountain TrailParticipant
- Total Posts: 9,939
Speaker Nancy Pelosi has indicated that the House of Representatives will abide by PAYGO in the next Congress…Many Washington insiders assert forcefully that committing to PAYGO rules in the House for the next Congress is good politics. The argument is that it assuages fears of politicians who believe they must make public commitments to lower deficits to avoid being punished by voters who care deeply about this issue…The strength of evidence supporting this political claim is debatable. What’s less debatable is that PAYGO really has hindered progressive policymaking in the not-so-recent past…. it was commitments to adhere to PAYGO that led to the Affordable Care Act (ACA) having underpowered subsidies for purchasing insurance and, even more importantly, having a long lag in implementation…
Even more fundamentally, it is terrible economics to view federal budget deficits as always and everywhere bad. Making good policy in the future will require that voters be educated on this front. Why not start now? After all, our failure as a society to understand the economics of deficits and debt greatly contributed to the destructive impact of the Great Recession of 2008–09. The stakes of allowing history to repeat itself are high enough that we should take the time to quickly recap the history of how costly irrational deficit-phobia has been…
Why am I taking you on this extended walk down the memory lane of irrational deficit-phobia? Because it had terrible consequences. The recovery from the Great Recession was the slowest in post-World War II history, and the degree of fiscal austerity can entirely explain its slowness. The figure below shows the growth in public spending per capita in the recovery following the Great Recession compared to previous recoveries. If this public spending following the Great Recession had followed the average path of the recoveries of the 1980s, 1990s, and early 2000s, a full recovery with unemployment around 4 percent would have been achieved by 2013…eventually we need to get much smarter about the economics of debt and deficits, and teach voters that the goal of fiscal policy is not always and everywhere to make deficits smaller. Our failure to do this has cost us dearly in recent decades, and now would be a good time to start.
January 4, 2019 at 7:04 AM #8334EnthusiastParticipant
- Total Posts: 4,587
I would like to remind you that U.S. health insurance companies do not contribute anything to health care. They are only a PARASITIC middle man receiving an undeserved cut of "FREE MONEY".
January 4, 2019 at 11:28 AM #8405JustSayinParticipant
- Total Posts: 535
Always Fall-In-Line crowd to pin this one on Trump or Russia. Sometimes you gain much more wisdom through destruction of an illusion than anything else. The progressive dem caucus is a JOKE even Jayapal is just another waiting for a better bidder sell out. We’d be better off pleading Trump to implement single payer than the corrupt rats, BTW now I understand what the #BlueWave was all about
Never expect different result by following the previous steps
January 4, 2019 at 9:41 PM #8618Cold Mountain TrailParticipant
- Total Posts: 9,939
I was surprised about the pitiful so-called resistance to pay-go, & somewhat surprised that aoc & roc khanna held firm (I’d read that he was a recipient of finance $, didn’t check it out though). I think there was at least one other, but whatever the number, the new progressive caucus looks to be a joke. they can go join nancy & chucky in their apparent goal of staying in office long enough to suck the proles dry before the planet explodes.
such a legacy.
January 5, 2019 at 10:29 AM #8767Snort McDorkParticipant
- Total Posts: 3,922
Thankfully, AOC voted No on this as did Tulsi and Roh Kahna of Calif.
I'm Snort McDork and I approved this message.
"I like birdy num-nums"
- You must be logged in to reply to this topic.