Joe Biden's team - afraid of Federal budget deficits?

[lpetrich]

Biden Has Nothing to Fear But Fear of Deficits Itself

And yet: Biden has a much-deserved reputation as a deficit hawk, as do some of his top aides. This week, one of the nominee’s top advisers suggested that Trump’s deficits will leave the next Democratic administration with little room for maneuver. As the Wall Street Journal reports:

Former Delaware Sen. Ted Kaufman, a Biden confidant who succeeded him in the Senate, predicted during a Wall Street Journal Newsmakers Live interview Tuesday that a large increase in federal spending would be difficult to achieve in 2021.

“When we get in, the pantry is going to be bare,” said Mr. Kaufman, who is leading Mr. Biden’s transition team. “When you see what Trump’s done to the deficit … forget about COVID-19, all the deficits that he built with the incredible tax cuts. So we’re going to be limited.”

Over Gilded Age II, ever since the late 1970's, it has been a common bit of political folklore that deficits are just plain bad. This has extended to some people proposing a Constitutional Convention to propose a Constitutional amendment for balancing the Federal budget. Yet the Reagan, Bush II, and Trump Administrations have been profligate deficit spenders. I once saw a cartoon of Ronald Reagan surrounded by bottles labeled "Ol' Deficit" and looking very tipsy. "Shay, this shtuff is dangerous. Lesh make it unconstitutional."

The Clinton and Obama Administrations, however, have been more willing to try to balance the Federal budget, the Obama admin at the expense of slowing down the recovery from the Great Recession of 2008. It seems as if a Biden Admin will go the same route.

 

[lpetrich]

Referring back to

When we get in, the pantry is going to be bare,” said Mr. Kaufman, who is leading Mr. Biden’s transition team. “When you see what Trump’s done to the deficit … forget about COVID-19, all the deficits that he built with the incredible tax cuts. So we’re going to be limited.”

Shawn Sebastian on Twitter: "This is a deeply dangerous, economically illiterate lie that is inconsistent with @JoeBiden's platform and core "Build Back Better" messaging. I know for a fact his team knows better than this and this statement must be retracted immediately. https://t.co/xHS6eH9vBp" / Twitter

Jamaal Bowman on Twitter: "The pantry is not bare. It was not bare to give trillions to bail out the airline and cruise industry, or Wall Street, or Trump’s tax cuts or for funding the forever wars.
It will not be bare to invest in the American people we have ignored for decades. Be bold. Be visionary." / Twitter

H. Eric Loewe on Twitter: "@JamaalBowmanNY @AOC @AOC "We write unlimited blank checks for war, we JUST wrote a 2 trillion dollar check for the GOP tax cut & NOBODY asks those folks how are they gonna pay for it. So my question is why are our pockets only empty when it comes to ...?" - @AOC https://t.co/KJZveCQGbf" / Twitter

H. Eric Loewe on Twitter: "@JamaalBowmanNY @AOC MT @Marmel
"How are you going to pay...?"
@AOC: "No one asks how we're going to pay for the Space Force. No one asked how we paid for a $2 trillion tax cut. We only ask how we pay for it on issues of housing, healthcare and education."
She’s killing it https://t.co/l3Nm73mijA" / Twitter

 

[lpetrich]

Stephanie Kelton on Twitter: "“When we get in, the pantry is going to be bare,” said Mr. Kaufman, who is leading Mr. Biden’s transition team. “When you see what Trump’s done to the deficit…all the deficits that he built with the incredible tax cuts. So we’re going to be limited.” https://t.co/VEz6VlGRK0" / Twitter
noting
Joe Biden United the Democrats—It’s Not Likely to Last - WSJ - "The DNC is rallying around Joe Biden in hopes of defeating Trump, but the party’s progressive wing is energized and centrists claim a broad mandate. That means the internal battle over what the Democrats stand for will continue no matter the result in November."

Stephanie Kelton on Twitter: "Let‘s be clear. The panty *is* bare for millions of families. Not for Congress. Not now. Not ever.
“People start lining up as early as 6 a.m. these days outside an emergency food pantry in Brooklyn’s Flatbush neighborhood.” https://t.co/quxr2WEU5H" / Twitter
noting
Pandemic, Growing Need Strain U.S. Food Bank Operations - WSJ - "Food charities are coping with shortages of some consumer goods, a crush of donations of others and soaring demand as they reset logistics for the Covid-19 pandemic era"

Stephanie Kelton has written a book, "The Deficit Myth", on how budget deficits can be good in some cases. She explains her premise in this interview: Hear The Bern Episode 51 | The Deficit Myth (w/ Stephanie Kelton) - YouTube

Book - Stephanie Kelton

Vice-president Dick Cheney famously boasted, “Reagan proved deficits don’t matter.” He was wrong.

Deficits do matter, but not the way we’ve been taught to believe. We’ve been told that China is our banker and that Social Security and Medicare are pushing us into crisis. We’re told the U.S. could end up like Greece and that deficits will burden future generations. These are all myths.

Deficits can be used for good or evil. They can enrich a small segment of the population, driving income and wealth inequality to new heights, while leaving millions behind. They can fund unjust wars that destabilize the world and cost millions their lives. Or they can be used to sustain life and build a more just economy that works for the many and not just the few.

 

[laughing dog]

The economic reality is that we really don't KNOW to what extent gov't deficits and run ups in gov't debt are detrimental to the economy in the long run (and sometimes in the short run).

 

[lpetrich]

Alexandria Ocasio-Cortez on Twitter: "This is extremely concerning. The pantry is absolutely not bare.
We need massive investment in our country or it will fall apart. This is not a joke. To adopt GOP deficit-hawking now, when millions of lives are at stake, is utterly irresponsible.
Hold the line. Win. Lead." / Twitter

H. Eric Loewe on Twitter: "@AOC (link) Warren Buffett and Bill Gates agree that the rich should pay higher taxes—here's what they suggest @emmiemartin @CNBC" / Twitter
noting
Warren Buffett and Bill Gates agree they should pay higher taxes

Archer 2.0 on Twitter: "@AOC This is EXACTLY how Trump got elected. By giving into Republicans on deficit which undermined their ability to show government can provide for the people, we collectively lost:
968 legislative seats
13 Senate seats
69 house seats
16 Governors https://t.co/4BNecxH1Gy" / Twitter

BridgeBurner47 on Twitter: "@AOC Dems always fall into the same traps... We'll hear endlessly about "fiscal responsibility"... GOP will talk Biden into tax cuts for the wealthy and corporations to "stimulate the economy"...lol" / Twitter
Tax cuts for corporations wouldn't be too bad if the bulk of their employees got raises and bonuses as a result, but that doesn't seem to happen.

BassBeens on Twitter: "@Anapasol1 @angelofdreamsb @GavinNewsom
Reagan (R)
$175 billion deficit
Bush Senior (R)
$269 billion deficit
Clinton (D)
$127 billion surplus
Bush Junior (R)
$1.4 trillion deficit
Obama (D)
$492 billion deficit
Trump (R)
$1.1 trillion deficit
Democrats clean up the damn messes Republicans create." / Twitter