Wednesday, January 25, 2023

Raising taxes or cutting the budget; two political third rails that clash.

On the debt ceiling, I've thought that Republicans should make public a draft budget cutting plan so the American people can see it.

A similar idea has been expressed in high places; beyond just my Facebook wall. I saw in the news.

Senate Majority Leader Chuck Schumer said on the Senate floor on Monday that the GOP should reveal their intentions to the public, saying that "Republicans are talking about draconian cuts, they have an obligation to show Americans what those cuts are and let the public react. … Does that mean cuts to Social Security or Medicare or child care or Pell Grants?"

Yes, making cuts is not an easy task, politically, as the American people have become so dependent on the government. Personally, I don't think dependency is necessarily a bad thing. It's part of modern society. Raising taxes on upper income people would help. Raising the cap for funding Social Security, for instance. Either raising taxes, or cutting budgets are two political "third rails" that clash.

We have muddled through with deficit spending made easier from quantitative easing (new money created) by the Federal Reserve. This has lead to a form of inflation which could be somewhat mild compared to the other alternatives. Mild compared to draconian budget cuts at least.

We'll see what happens as the giants, in Washington DC, struggle with this dilemma.

A growing part of the Federal budget is disaster relief. That's another, of many things the government provides, where it's difficult to make cuts. It's difficult for politicians to turn their backs on the American people when they are in need. Somehow, we do need to figure out how to make our lives and our society more resilient.

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