Debate moderator outsourced all of her questions on the economy to a group of fiscal conservatives

[swag]

https://thinkprogress.org/debate-moderator-outsourced-all-of-her-questions-on-the-economy-to-a-group-of-fiscal-conservatives-20b81a28159a#.l1xaa2snz

1988 called, it wants its debate topics back

Ian Millhiser

. . .

Quijano did not ask either candidate about their plans to foster job growth. She did not broach the subject of trade. Or ask about home ownership. Or wages. Or job training. Or poverty.

Instead, she asked just two questions about economic policy, and she explicitly attributed both of them to the “nonpartisan Committee for a Responsible Federal Budget.” The first asked if the two vice presidential candidates are “concerned that adding more to the debt could be disastrous for the country.” The second warned of a grim future, “when the Social Security Trust Funds run out of money.”

So who is the Committee for a Responsible Federal Budget? They are probably the leading advocacy group promoting the idea that federal deficits are out of control and shrinking them should be a top priority. Their board members include both Alan Simpson and Erskine Bowles, co-chairs of a government commission that tried and failed to advance various proposals supported by deficit hawks in 2010. Pete Peterson, a billionaire who is probably the nation’s leading funder of anti-deficit advocacy, is also a board member.

To be sure, there are many people — especially in elite media circles — who share the Committee’s view that deficits are a pressing issue. But Quijano’s decision to focus on this to the exclusion of all other economic policy questions is odd. It is especially odd because the case for aggressive deficit reduction is weaker today than it has been in years.

In 2009, when President Obama took office, America’s deficit was 9.8 percent of our gross domestic product. Compared to historic levels, that is very high — although high deficits are normal during a recession. When the economy is weak, tax revenue declines at the very same time that more Americans are taking advantage of safety net programs. And that means more money going out of the federal treasury and less money coming in.

Seven years later, however, the deficit was only a quarter of the size it was when Obama first moved into the White House. In 2015, the deficit was only 2.5 percent of GDP. It’s now lower than it was at any point during the entirely of Ronald Reagan’s presidency.

. . . more

[tonyt53]

1. Most people confuse the deficit with our debt. The payment on the debt is a fraction of the deficit.

Most businesses operate on lines of credit, which they pay back at a small rate of towards the principal, but mostly paying just the interest on the money they have borrowed. That deficit to GDP ratio is a significant comparison of how the economy is doing, and real economists know that. The 2.5% is outstanding.

[exboyfil]

2. But if interest rates go up

which they should eventually in a healthy economy, then we are looking at a problem ($20T at 5% is $1T/yr). Current 10 year Treasury is at 1.7%.

Another issue is the $200B/yr. draw down of the S.S. Trust Fund over about 15 years starting towards the end of the first term of President Hillary Clinton.

This is money that will have to be found in current spending, increased taxes, or borrowed.

Our debt to GDP ratio is 107%. - one of the highest in the world for a liberal democracy.

[Cracklin Charlie]

3. Kick for good info about the deficit.

Good info to share with leaning voters.

[stuffmatters]

4. Tim Kaine should have explained the easy raise the cap solution to Soc Sec

Instead of just mentioning it. Most Americans don't ever reach the cap, many do not even know that it is a massive giveawayto the rich, both by taxing only a tiny % of their earned income, but also by not taxing capital gains, where most of their money is made.

Explaining the scrap the cap (or the donut hole cap raise Hillary's come up with) is such an easy way to instantly dispel the relentless fearmongering/ ominipresent Pete Peterson anti Soc Sec propaganda machine...a machine that has thoroughly brainwashed CBS (from gym rat Scott Pelley to their economic malpracticing mod last night) The Dems consistently fail to explaiin and stress this obvious and long overdue fair fix to Soc Sec.