The Deficit could be the main issue in 2012

[CJK]

I'm convinced that the deficit could be the biggest issue in 2012. The vast accumulation of debt that is being projected under Obama is genuinely frightening. It is worse than what we saw under Bush. It's even worse than when Ross Perot ran against it in 1992 since it is increasingly being owed to unfriendly foreigners. A report out today suggests that the Gulf states want to drop the dollar, which comes amidst widespread rumors of the dollars downfall linked to this accumulation of debt. Meanwhile, just 38% of Americans approve how Obama is handling the deficit--the lowest of the categories measured.

I understand that Republicans in general could be portrayed as huge hypocrites if they run on this, but they could simply state that they also disapproved of the previous administration's deficit spending.

[Lief 🗽]

nah

[Хahar 🤔]

It wouldn't work. It would certainly be hypocritical, and people just don't care that much. If the economy is fixed by 2012 (and it ought to be, if history means anything), then people will vote on that.

[Eraserhead]

Can anyone show me a presidential election where the deficit was or was at least perceived to be the main issue?

[Deldem]

Can anyone show me a presidential election where the deficit was or was at least perceived to be the main issue?

1984 and 2004? The deficit totally prevented Ronald Reagan and George W. Bush from getting reelected.

Oh wait, nobody gave a damn that the deficit tripled in both instances, and Reagan won in a landslide and Bush won by making the war on terror the main issue.

[bgwah]

Haha, no. Americans are too stupid to base their votes on real issues.

[The Mikado]

Hardly.  The GOP is way too tainted on that issue to be portrayed as serious debt-hawks, especially with the loony anti-tax wing forcing all candidates to sign those pledges that they won't address the government's cash-flow problem.

[Southern Senator North Carolina Yankee]

The deficit is part of the recession. We have lost 100's of Billions in tax revenue due to the recession plus increases in spending on the Safety net as well as the Bailouts and stimulus. You can't begin to address the deficit with an output gap, a deflationary spiral, and rising unemployement.

[Obnoxiously Slutty Girly Girl]

Remember, deficits don't matter. Live for the moment and let the grandchildren deal with the consequences.

[Хahar 🤔]

Remember, deficits don't matter. Live for the moment and let the grandchildren deal with the consequences.

They'll do the same.

[Obnoxiously Slutty Girly Girl]

Remember, deficits don't matter. Live for the moment and let the grandchildren deal with the consequences.

They'll do the same.

Oh, you think this gravy train can and will last forever? You are mistaken.

[Eraserhead]

Remember, deficits don't matter. Live for the moment and let the grandchildren deal with the consequences.

They'll do the same.

Oh, you think this gravy train can and will last forever? You are mistaken.

Nothing lasts forever but this "gravy train" shows no signs of stopping any time soon.

[Obnoxiously Slutty Girly Girl]

Remember, deficits don't matter. Live for the moment and let the grandchildren deal with the consequences.

They'll do the same.

Oh, you think this gravy train can and will last forever? You are mistaken.

Nothing lasts forever but this "gravy train" shows no signs of stopping any time soon.

It stops whenever China decides it should stop.

[fezzyfestoon]

Haha, no. Americans are too stupid to base their votes on real issues.

[pbrower2a]

The deficit is invisible until it cuts into people's lives -- like having to sell off public assets to foreign creditors who then make Americans pay heavily as quasi-rents (such as large tolls on even two-lane blacktops that remain two-lane blacktops) for what they used to get free, or when debt service forces new taxes or huge increases in old ones, or if inflation results from a devalued dollar with once-readily-available objects disappearing from store shelves except in places that cater to the very rich and well-connected.

 

[Sbane]

The way to deal with deficits is by raising taxes and massively cutting military spending. Will the republicans ever do that? We would also need to reconcile the rising cost of healthcare, another thing republicans just aren't willing to do. Seriously what else will you cut? Anything you try to cut that hurts our economy won't be acceptable to our creditors.

As for the current stimulus spending....I hope republicans understand what will happen if we do stop it and the bailouts. And it's their trusted market fairy that will sh**t itself if these actions are taken currently. If Obama goes out there tomorrow and announces he is stopping the stimulus the dow will drop 500 points easily.

[Mr.Phips]

Cutting spending is pretty much equivalent to taking money out of peoples pockets.  It hurts the economy. 

[opebo]

Wishful thinking...

[CatoMinor]

Cutting spending is pretty much equivalent to taking money out of peoples pockets.  It hurts the economy. 

remember that the money came from the people's pocket befor they had it. what would hurt you more, saving part of your paycheck or spending more than you've earned then just printing off money to cover what you owe?

[zclark1994]

It's defiantly a possibility that the deficit could be the largest issue.  As long as obama does not fix it.  (Which he won't)

[Mr.Phips]

Cutting spending is pretty much equivalent to taking money out of peoples pockets.  It hurts the economy. 

remember that the money came from the people's pocket befor they had it. what would hurt you more, saving part of your paycheck or spending more than you've earned then just printing off money to cover what you owe?

Not if taxes are not increased.  The government has the ability to spend more than it takes in and is often the only driver of growth in bad economic times. 

[Vepres]

It would be a fascinating election. Perhaps a Perot-esque figure would emerge.

[Wiz in Wis]

Huckabee would do well to campaign on it, at least in the primary. Unfortunatly, for the Reps, putting up a conservative former southern governor is probably enough to guarantee a loss.

[pbrower2a]

It's defiantly a possibility that the deficit could be the largest issue.  As long as obama does not fix it.  (Which he won't)

A healthy economy can fix a deficit all by itself. Add to that, should the war wind down in Iraq and America find a graceful exit from Afghanistan, we get one huge "peace dividend".  The federal government likely sells off its stake in partially-nationalized entities for a solid profit as well as the initial investments, and a big chunk of the national debt disappears. Debt service becomes less of a burden. More people become taxpayers as their incomes go into higher brackets due only to genuine success. In that case the President can safely claim that he has imposed no new taxes and acted as a fiscal conservative... much as Bill Clinton could claim.

The other "fix" is with deliberate tax increases, budget cuts, or both -- that hurt people and can do damage to a shaky economy. 

[rebeltarian]

The way to deal with deficits is by raising taxes and massively cutting military spending. Will the republicans ever do that? We would also need to reconcile the rising cost of healthcare, another thing republicans just aren't willing to do. Seriously what else will you cut? Anything you try to cut that hurts our economy won't be acceptable to our creditors.

As for the current stimulus spending....I hope republicans understand what will happen if we do stop it and the bailouts. And it's their trusted market fairy that will sh**t itself if these actions are taken currently. If Obama goes out there tomorrow and announces he is stopping the stimulus the dow will drop 500 points easily.

The stimulus and the bailouts are reactionary government interventions to attempt to correct the faults of....government intervention!!  Our entire economic crisis is the result of a government-controlled monetary system.  Ever since this country went off the gold standard, we've been going through these boom-and-bust cycles and neither Republicans let alone Democrats have done anything to address this flawed currency system.  The way to deal with a deficit is to put a cap on spending (military and domestic) and learn to live within our means.  When are Obama and his Democrats going to realize that raising taxes, creating inflation (the hidden tax) and spending like mad is only going to drive us deeper into debt (not to mention backed up behind ever bigger, authoritarian government)?  We're in a hole and the heavy spending is only digging us down deeper and the higher taxes/inflation is the dirt being poured on us.