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Country 2nd: Faux deficits hawks are shocked! shocked! to (re)discover that the deficit is rising!! via @crampell
https://www.washingtonpost.com/opinions/right-on-schedule-republicans-pretend-to-care-about-deficits-again/2021/01/21/a749e500-5c17-11eb-a976-bad6431e03e2_story.html
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https://www.washingtonpost.com/opinions/right-on-schedule-republicans-pretend-to-care-about-deficits-again/2021/01/21/a749e500-5c17-11eb-a976-bad6431e03e2_story.html
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At one point deep int he past, both parties believed all of the the noise about deficits being disastrous. The past 40 years have taught us that obsession was misplaced and the underlying belief is bullshit.
https://ritholtz.com/2010/07/deficit-chicken-hawks-vs-ronald-reagan/
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https://ritholtz.com/2010/07/deficit-chicken-hawks-vs-ronald-reagan/
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We saw this debate after the GFC, when the Austerians won the battle but lost the war.
They crimped the Keynesian response, and ensured the post GFC recovery was the worst on record.
https://ritholtz.com/2010/06/austerians-vs-keynesians-nyt-edition/
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They crimped the Keynesian response, and ensured the post GFC recovery was the worst on record.
https://ritholtz.com/2010/06/austerians-vs-keynesians-nyt-edition/
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Compare the GFC fiscal response with the Pandemic Fiscal Response.
$772 Billion over 4 years versus 2.1 trillion over 8 months.
The CARES ACT put a floor under the collapse and began a recovery much sooner than anyone expected.
https://ritholtz.com/2020/08/fiscal-response-to-the-pandemic/
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$772 Billion over 4 years versus 2.1 trillion over 8 months.
The CARES ACT put a floor under the collapse and began a recovery much sooner than anyone expected.
https://ritholtz.com/2020/08/fiscal-response-to-the-pandemic/
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Something to think about in this "K-Shaped" Recovery
Monetary stimulus benefit asset owners -- stocks, real estate, businesses all benefit enormously.
Fiscal stimulus benefits working people - it can create jobs + puts cash in people's pockets
https://ritholtz.com/2020/09/the-k-shaped-recovery/
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Monetary stimulus benefit asset owners -- stocks, real estate, businesses all benefit enormously.
Fiscal stimulus benefits working people - it can create jobs + puts cash in people's pockets
https://ritholtz.com/2020/09/the-k-shaped-recovery/
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Consider this INSANE stat: "Americans’ cumulative after-tax personal income was $1.03 trillion higher from March to November of 2020 than in 2019, an increase of more than 8%" - @Neil_Irwin
That is the impact of direct government payments to individuals
https://www.nytimes.com/2021/01/01/upshot/why-markets-boomed-2020.html
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That is the impact of direct government payments to individuals
https://www.nytimes.com/2021/01/01/upshot/why-markets-boomed-2020.html
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Perhaps the dumbest aspect of this entire debate is this: Given the once in a lifetime ultra-low rates, its never been cheaper to deficit spend, or to refinance existing debt. It's a no brainer.
To prove the point, Congress reveals it has no brains.
https://ritholtz.com/2020/12/cost-of-financing-us-deficits/
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To prove the point, Congress reveals it has no brains.
https://ritholtz.com/2020/12/cost-of-financing-us-deficits/
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I have said this in small groups -- it always generates pushback, but its now too obvious too deny -- when out of power, the GOP wants to harm the economy to help their election prospects. They did it with BHO, and they are trying now. @paulkrugman
https://ritholtz.com/2010/02/deficit-hawks-want-new-or-double-dip-recession/
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https://ritholtz.com/2010/02/deficit-hawks-want-new-or-double-dip-recession/
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How could you vote for Iraq War, unfunded Bush or Trump Tax cuts, or other expensive programs but be against funding cities + states to roll out vaccines to end this miserable pandemic?
It's a war and should be treated it as such.
@hiltzikm
https://www.latimes.com/business/story/2020-12-04/republicans-budget-deficit
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It's a war and should be treated it as such.
@hiltzikm
https://www.latimes.com/business/story/2020-12-04/republicans-budget-deficit
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America never seems to have an honest debate on tax policy. I wish this was something we did better. We keep missing opportunities that would make everyone in the nation much better off.
https://ritholtz.com/2017/10/can-please-honest-debate-tax-policy/
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https://ritholtz.com/2017/10/can-please-honest-debate-tax-policy/
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