The Average Joe

As the GOP pushes ahead with their tax plan, clearing both Houses in Congress, we seem to be going down a familiar, yet dangerous path. There are two economic ideas that have come to dominate Republican economic policy. They are that tax cuts pay for themselves and that the theory of “starve the beast” actually works. The “starve the beast” theory states that by lowering taxes, this forcefully reduces spending, as there is less revenue coming in. If anyone follows Bruce Bartlett, former economic advisor to Presidents Ronald Reagan and George H.W. Bush, it is easy to see how starving the beast does not work and leads to higher spending. The truth of the matter is that neither one of these ideas have worked. In fact, a recent study done by the Congressional Research Service (CRS), has found that lowering tax rates on the top 2 percent does not spur any kind of economic growth. To add to that point, just looking back on history will also demonstrate that tax cuts do not pay for thems...

Over the last week we have been hearing that Larry Summers might be President Obama’s pick for the next chair of the Federal Reserve after Ben Bernanke retires.  Just from looking at his history, as well as the economic history of the United States over the last 15 years, he is the wrong man for the job. President Obama has demonstrated that he is loyal to those that have supported and aided him, but picking Larry Summers would be a terrible mistake, as we are still recovering from the worst financial crisis since the Great Depression.  It is best to put somebody at the Federal Reserve that will respond quickly and effectively.  In looking back to the late 1990’s, it is clear to see that Larry Summers is not that guy. Back in the late 1990’s, Brooksley Born, the former head of the Commodity Futures Trading Commission (CFTC), vigorously pushed to regulate the risky over-the-counter derivatives market, which are off-balance sheet agreements whose prices are dependent up...

Throughout the GOP debates, candidates have criticized President Obama for not doing enough on a variety of issues, which include the economy, jobs, gas prices and his stance on Iran’s nuclear program.  In reality, the GOP candidates are wrong and President Obama stands a very good chance for reelection because of what he has done in while in office. The recession that resulted from the market crash of 2008 put the United States in its biggest financial crisis since the Great Depression.  Many have this perception that presidents can fully control the direction of the economy.  The truth is that they cannot and most of that power in government rests with Congress.  Nevertheless, voters still hold the president accountable when the economy tanks and praise him when it grows.  Since January, 2012, the economy has been growing and unemployment has been decreasing .   If this trend continues through the Presidential Debates in the fall, President Oba...