So, Reason magazine. Any thoughts?
I’ve been following their online presence for a while. For some reason, I had the preconception that they were mostly focused on religion, secularism, and rationality, but I may have been thinking of someone else. Reason predominantly cover politics, and they’re an interesting crowd. Even when I’m not entirely on board with their message, disagreeing with them tends to feel more worthwhile than it does with a lot of other commentators, who are often just boringly wrong.
Nick Gillespie, editor-in-chief of Reason.com who may or may not be played by Bill Hader, was recently on Bill Maher’s talk show:
I take issue with a number of things he said, but in a way that’s more fun to unravel than when someone like Rush Limbaugh says something obviously stupid and cruel.
Among the generally liberal panel on liberal Bill Maher’s liberal show, Nick seems to be kind of on his own in suggesting that America’s economic problems should be primarily solved through spending cuts. Here’s something he said that was received with particular agitation:
We don’t have a revenue problem; we have a spending problem.
I’m not so interested in whether this statement instantly proves Nick Gillespie to be a Republican, as Bill Maher reckons it does. But I do think it misstates the problem.
Actually, I suppose it’s possible that the problem only lies in one area, but the situation of “being in debt” depends on the relationship between two factors: how much money you acquire, and how much money you spend. (Stop me if the Micawber-esque economics is getting too technical.) Given only that the US is spending more money than it makes, there are clearly two methods available for getting out of the red:
- Increase the amount of money made (while avoiding a corresponding increase in money spent),
- Decrease the amount of money spent (while avoiding a corresponding decrease in money made).
America doesn’t just have a spending problem. It has a problem with the money, and the money both comes and goes.
If we’re spending money in ways that aren’t worth the trouble of raising the funds, we should cut that spending. But if we’re spending money on things important enough that raising more funds (which generally seems to mean taxes) is the less harmful option, we should do that.
Given just how many $1,000,000,000,000s are being talked about, it seems unlikely that enough spending can be cut to clear the debt, without increasing revenues at all. Nick Gillespie does actually have some suggestions that would make this a more practical idea, such as ending America’s engagement in the wars with Iraq, Afghanistan, and Drugs (the scariest foreign land of all), but none of this seems to be remotely on the table for any of the country’s actual politicians, even the purportedly “small government” supporters on the right.
So it doesn’t seem entirely unreasonable, given this massive amount of money that’s already been spent which needs to actually be paid, to wonder whether the super-duper rich folks could be chipping in any more than they are now. Don’t get me wrong, I’m all for supporting enterprise. I don’t want to punish people for working hard and becoming wealthy. I’m not saying we go crazy with this.
But I’m pretty sure the US economy was coping with income tax rates being what they were in the 1990s, before the Bush tax cuts came into play in 2001 and 2003. Those cuts were set to expire in 2010, but were extended. Business wasn’t being crippled and major corporations weren’t moving daily overseas to more liberal climes. And, presumably, tax revenues were significantly higher than they are now. So, maybe we could look at some things going back to how they were before?
I’m not saying that’s definitely the way to go. Someone who actually understands economics would surely see many ramifications to something like this which would never occur to me. But shouldn’t it at least be on the table? Or am I a socialist line-toeing democrat for even bringing it up?
So, that was a bit of a ramble which rather got caught up on one particular point made during the above clip. A lot of interesting stuff comes out in the rest of it, though, so have a look if you’ve got time.