Friday, April 15, 2011

Budget battle represents a discussion of core american values

The heat and smoke from the "Budget Battle" has crowded out any discussion of unemployment or Black Economics. So we have to talk the issue. First, is there even a budget issue. Short-term: No. Inflation is in check. Interest rates are zero. There is excess capacity in the manufacturing and labor markets. The real short term problem remains which is unemployment: long-term, structural, and class based.

In the medium and long-term there is a real problem but of a smaller magnitude than is covered in the news. Yes, we spend more than we collect but it is easily corrected by reducing our spending on the military, health care and tax relief.

The real issues is the conservatives using the debt as an excuse to limit the size and especially the role of government in programs they don't like. They are willing to cut education, health and retirement account but not the military, fire & police or business tax incentives. It is really just a battle over fore beliefs disguised as a "Debt / Budget" battle.

At last the American public is starting to understand the issues. I hope we can have a deeper understanding of the issues.

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