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Fairness and The Debt Crisis

Fairness and The Debt Crisis



Right now the Washington establishment has chosen to focus on the Debt Crisis and has forgotten Fairness. They have failed to realize that the Debt Crisis is in fact merely a symptom of our economic ...

Right now the Washington establishment has chosen to focus on the Debt Crisis and has forgotten Fairness. They have failed to realize that the Debt Crisis is in fact merely a symptom of our economic crisis and is the result of bad economic policy - unfair policy. This presentation puts the Debt Crisis in its proper perspective. It is brought to you by the Fairness Coalition.



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    Fairness and The Debt Crisis Fairness and The Debt Crisis Presentation Transcript

    • An Introduction There is no dispute from any portion of the political spectrum that the federal budget deficit is rising and that the debt has reached its highest levels since WW2. What is under dispute is why the deficit and debt are this high and what can be done about it. The bigger dispute perhaps is whether we are viewing the symptom as the problem instead of the real problem – in other words, would we be in a debt crisis if there hadn’t been a Great Recession or decades of bad economic policy? The Debt Crisis is the direct result of a larger crisis which was borne as a result of the implementation of unfair policies. Adding more unfair policy now makes no sense .
    • What is Fair Debt Policy ?
      • Fair Debt Policy begins with the recognition that average Americans did not create the current debt, the current deficit or the current economic crisis. It is not the lifestyle of ordinary Americans that led us here – it is instead the greed gone wild of a few that caused all of this.
      • Fair Debt Policy can only occur if the true causes of the debt crisis are addressed – those causes include:
        • A decade of unjustified wars.
        • Outsourcing of millions of American jobs.
        • Trillions of dollars of tax cuts to the wealthy.
        • Deregulation of the financial industry – which had the effect of turning Wall Street into a Casino.
        • The stagnation of income & job opportunities for the Middle Class (over decades).
    • The Debt Crisis did not begin with the Obama Administration. It began during the 1980’s.
    • Fair is Smart One of the main principles of Fair Economics is that the Fair policy is also the Smart policy. This applies to Fair Debt Policy as well. Common Sense Rule Number 1 – if economic policy penalizes those who represent the majority of economic activity the economy will of course destabilize. Rule Number 2 – if you invest trillions of dollars outside of your own economy / nation, you’re taking away trillions of dollars that could have gone into the nation. Rule Number 3 – if you remove all the safeguards from the financial market, it will no longer be safe.
    • What Do We Do?
      • How can we resolve the Debt Crisis? Here are some suggestions:
        • Solve the Economic Crisis first – no amount of budget cutting will ever match the rate of revenue decline if we plunge into a Depression.
        • Make the folks who have been riding the gravy train for the past 30 years finally pay their fair share.
        • Shut down the Wall Street Casino – safeguard our financial markets and keep them safe.
        • End the wars, all of them, now.
        • End outsourcing now – stop all mergers, now.
        • Ensure that any stimulus goes into the actual creation of jobs – no more giveaways.
    • Deficits and Debt are not random outcomes – they are tied to policy – always…
    • What Not to Do The worst thing we could possibly do is what our leaders are advocating now – to penalize the American people because of the greed, irresponsibility and stupidity of the handful of people who brought the world to brink of financial collapse. Not one of the people who caused the current crisis have been indicted or tossed in jail – in fact many of them had their debts bailed out by us, the taxpayers at 100 cents on the dollar. This is hard to believe, but this is what happens when corruption drowns out the needs of the people. Current policy is being dictated by exactly the same people who created the crisis that caused the debt. These people blame us for everything…
    • What Not to Do - 2
      • The people who caused the crisis want to make us suffer – to pay for their misdeeds – here’s how:
        • They want to eliminate our retirement income by changing or eliminating Social Security.
        • They want to get rid our retirement health coverage by eliminating Medicare.
        • They want to further increase the cost of going to college for our children.
        • They want to eliminate unemployment benefits and disaster relief, housing assistance, veterans benefits – in short anything that helps to make our society strong and livable. They refer to all of this as “Discretionary Spending.”
    • Why The Current Plan is Unfair
      • It’s unfair because it is penalizing the wrong people for the wrong reasons.
      • It’s unfair because it won’t work – it will further depress an already shrinking economy – thereby further growing the size of the deficit and the debt anyway.
      • It’s unfair because long-term it will wreck any chance of returning to a strong economy – we will have permanently lost the middle class as we know it today.
      • It’s unfair because it assumes that much of the recent debt or stimulus went to ordinary Americans when in fact almost none of it did – out of the trillions that went to bail out Wall Street and out of the many billions in the stimulus only a tiny fraction went to create jobs. The vast majority of stimulus was a giveaway to the folks who caused the crisis – they didn’t deserve it .
    • The main causes of the current deficits are; revenue shortfalls (from tax cuts and the Recession), the cost of war and bailouts that didn’t go to ordinary Americans anyway. The added expenditures have not been directed to policies that would solve our actual economic crisis. That’s the real problem.
    • Summary
      • Fair Economics is Smart Economics. Fair Debt Policy begins with the admission that ordinary Americans did not cause the Debt Crisis . Since ordinary Americans didn’t create the crisis – they shouldn’t be asked to make all of the sacrifices.
      • What caused the debt crisis was bad economic policy – and that bad policy led to the Great Recession. The folks who made those policies – were rewarded .
      • The way to solve this crisis is to resolve the true problem first – the economy. The only way to do that is stop listening to those who created the crisis and focus on solutions that will help ordinary Americans – not penalize them - That will only deepen the crisis.