12 thoughts on “There are a lotta very rich people out there…”

  1. Interestingly enough Greenspan was on the radio this morning (I think he’s talking to Congress). He said that Congress needs to cut the budget for Medicare in half or raise taxes to unsustainable levels to save the program. The government promised twice what it can deliver.
    I’m sure that statement will end up in Blogs soon enough.

  2. The inevitable collapse of the dollar (7:07)
    Excellent financial documentary from 2007. It consists of interviews with economists from around the world. Everyone but the US government knows the end is near unless we change our ways. In 2028 when this place starts to unravel we’ll look back on the crash of 2008 as the good ol’ days.

  3. jayhuck
    Longterm the USA can’t spend more than it takes in. But the more that taxes increase the worse the economy grows. It’s a balancing act between taxes and growth.
    According to the government’s own figures the current tax rate is only 50% as high as it needs to be to pay for our current expenses and for our future obligations. 50 FREAKIN’ PERCENT! Our budget is so out of whack it’s amazing. To save the country we need to double taxes on everyone (which is impossible) or cut spending and our future entitlement obligations in half. Working rich people like doctors already pay a 50% tax rate. How long are they going to stay in the USA at a 100% tax rate? Not long. We have to cut, we have no choice.
    Anyway regardless of the consequences if we don’t cut spending or raise taxes or a combination of both this country won’t see 2040. The Trillion dollar deficits we are about to run plus the compounding interest on these deficits accelerates that date considerably. If Obama passes national health care it accelerates our demise even faster.
    David Walker, Comptroller General and Head of the GAO on 60 Minutes, (7:57)
    We face national bankruptcy by 2040.

  4. @jayhuck
    “We contend that for a nation to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” – Winston Churchill
    No further comments 😉

  5. Drowssap –
    If we don’t massively cut spending or massively raise taxes (which we shouldn’t do) we’re finished by 2040.
    That you truly think we can save ourselves without cutting taxes is incredible. We’ve had years of tax refunds that have sent us nothing but further into debt but somehow you hope that not raising taxes is going to save us.

  6. Barney Frank

    I think that at this point their needs to be a focus on an immediate increase in spending, and I think this is a time when deficit fear has to take a second seat.

    Frank has no idea what he is getting us into. Compound interest is one of the most powerful forces in economics when you are a saver or investor. Conversely it’s one of the most destructive forces to debtors. The deficit spending we’ve participated in since the 1980s will destroy the USA in just a few more decades.
    If we don’t massively cut spending or massively raise taxes (which we shouldn’t do) we’re finished by 2040. These unexpected trillion dollar deficits dramatically accelerate that timetable. I guess Frank figures that won’t be his problem so why worry.

  7. It’s interesting. About a week or so ago I saw our esteemed Rep. Frank on a local Boston TV show (Emily Rooney on Channel 2. Yes, Public Television). He remarked that we (Congress) needed to put together another “Stimulus package” to get monies flowing to the cash-strapped state governments. Yet the Evil Republicans (who, remember, are at this time in the minority) are blocking the efforts to do this vitally important work.
    Yet, later in the interview when Ms. Rooney questioned him about how when in 2004/5 the Evil Republicans wanted to clamp down on Fannie and Freddie, Frank and the Democrats blocked it. Frank responded that that could not be true; the Republicans had a majority at that time, and so the Democrats could not have blocked what the Republicans wanted to do.

  8. – The time to restrain spending is not before a major recession! A world of no! (lol)
    – The rich are getting richer. Which is fine, but it’s silly to argue that “after awhile the many of those rich people making over $250k might not be so rich.” Please take a look at the following graph.
    – The Obama tax plan *slightly* increases taxes for those making just above $250,000. The biggest increases are for the super-rich.

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