I disagree with the President on taxcuts and open markets as a way to stimulate the economy..

[kentuck]

In his speech before the union members in Detroit, he mentioned that taxcuts would put more money in the pockets of working people and that opening up the markets with more trade would create more jobs.

I am no economist but I do have a sense of history. It seems we have tried this before?

I am not persuaded that a cut in FICA taxes is not a cut in the Social Security fund? I do not believe any of that "tax cut money" will be paid back into the fund by general revenues. It is gone forever. The FICA fund will be diminished. In other words, Social Security will be cut.

Also, there is no evidence that any new trade treaties will create jobs for Americans. To the contrary, if history is any indication, it will lose more jobs for Americans.

But this is what I heard the President say in Detroit. Did anyone else hear something different?

It seems to me that this would be the appropriate time for the Fed to help our economy. Just print the money. Don't borrow it from the Chinese. Borrow it from ourselves. I do not see the threat of inflation that some see in this deflated economy. Prices are going up right now not because of too much money chasing too few goods but because businesses want to keep a certain profit margin.

We should print the money and put people to work on the infrastructure and needed construction. We shouldn't cut the FICA taxes to pay for it. Just my opinion.

[Skittles]

1. Obama is adopting repuke policies, and will be blamed for their failure

it's a repuke WET DREAM

[Angry Dragon]

2. Well you are probably 100% correct

now to get anyone in DC to listen to you
and then for them to actually hear you

[Marrah_G]

3. Ugh

I hate every politician and crony working for them in DC more very day. Loathe is beginning to describe what feel.

[Prophet 451]

4. The tax cuts aren't necessarily a bad idea

They just need to be targeted at the working and underclass who will actually spend the additional money. Basic Keynesian economics says that, during economic downturns, government needs to spend money on stimulus, preferably putting people to work directly (i.e. a WPA or something similar) and cut taxes on those most likely to spend the additional money. The problem with the last round of tax cuts was that not enough went to the groups most likely to spend i.e. the working and underclass. Much of it was directed at the upper class (who just banked it) and the middle class (who may win you elections but are likely to save the money).

Cutting FICA taxes is also not necessarily a bad idea so long as it's only done short-term. If it's only done briefly and the FICA taxes later rise (or the shortfall is made up some other way), it shouldn't do any harm. Cut it for any real length of time, more than about six months at a guess (and I stress that it is a guess), and people start to see the lower rate as the new normal which makes raising the rate or even just putting it back to normal much harder.

Trade treaties, it depends on the details. Free trade treaties, you're right, will cost American jobs.

I've said for about two years now that the US should enact a new WPA, a permanent one. That would bring unemployment down, stimulate the economy (because people would have jobs and therefore, money to spend) and rebuild/maintain the crumbling infrastructure as well as community-enhancing projects like beautifying countryside or building low-income housing. As time goes on, such a WPA would become a beloved institution. It would provide many teenagers with their first real job, give ex-cons the chance to turn their lives around and, because it would always be hiring, it would save families from falling into poverty when the head of household loses his job. If you lose your job, you just call the WPA and tell them your skills (so they know where to assign you) and you have a new stopgap job, as simple as that. Always hiring, giving you an honest wage for an honest day's work and providing you with healthcare too (my backdoor way of doing Medicare-for-all). The way I envision it, it would also provide you with on-the-job training and, in time, maybe a system could be worked out where you get free college tuition in exchange for X years working for the WPA.

Anyway, that's my opinion.

[kentuck]

6. Yes, there is a small positive to taxcuts for workers...

But over a period of time, without any pay raises, they become dependent on the tax cuts to survive - much like they have with the Bush taxcuts.

The SS fund has presently lost over $100 billion dollars from the FICA taxcuts. Have they helped the economy? It only means SS will go broke quicker. I don't think that is a good trade-off.

I can understand the President's motives. Since the Repubs will not give him anything to stimulate the economy with, these FICA taxcuts are all that he has left in his toolbox. However, I don't think it is a wise move on his part.

[Prophet 451]

7. In these circumstances, you're probably right

Both you and I could easily think of a dozen more stimulative measures but, Congress being what it is, anything sensible has zero chance of passing.

[kentuck]

8. I don't think we can look for much of anything to pass until after the election...

There is gridlock in Washington.

[durablend]

5. You're absolutely correct

But expect others to complain you "just don't understand", "need to wait for the president to speak before you bash", and "need to let these policies work for awhile first"

Funny how if a Republican proposed this, most of us would likely treat it as rubbish, but it's one of "our guys", so it's just more "total awesomeness"

[Vinca]

9. I'm afraid if that's his plan, it's doomed before it starts.

There are some good ideas coming from the Democrats in the House, but they don't have a prayer of coming to a vote and would never get past the pukes if they did. It's a sorry situation that is begging for bravery and boldness. Maybe once Obama realizes he probably won't be re-elected with these half-assed GOP ideas, he'll step up to the plate in a last ditch effort to save his presidency.

[mmonk]

10. You are correct.

It just reminds me this is going to be a lost election about how further right we want to move, Republican right or New Democrat right.

[swilton]

11. K&R

[jannyk]

12. k&r

[mfcorey1]

13. Why am I not surprised?

[TwilightGardener]

14. Is there a way to do free trade agreements right? Is there a way to

put in incentives, or disincentives, or stipulations so that our workers and our manufacturing base aren't always getting the shaft?

[kentuck]

15. my opinion would be...

that no American company should be permitted to invest more than 50% of their businesses in other countries and still get tax protection.

[TwilightGardener]

16. That sounds good to me. Obviously, we didn't use enough sticks and carrots

with NAFTA.