TPMDC Dean Baker
Economy
Romney Budget Attack Based Flawed View Of The Economy
In a new effort to turn the country's debt and deficits into political problems for President Obama, Mitt Romney's campaign is promoting a new infographic that draws a comparison between federal and household budgets.
It may be a political winner, but it's a deeply flawed way to look at budgeting, as even many conservative budget experts admit. And it rests on the false implication that President Obama has no intention or desire to rein in deficits in the coming years.
But it breaks down further when you examine the analogy more closely -- and, as Dean Baker, co-founder of the liberal-leaning Center for Economic and Policy Research says, it suggest either that Romney's misleading voters about his policy views, or that he has a "loony" view of the economy.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Barack Obama, Budget, Dean Baker, Debt, Deficit, Economy, Mitt Romney, Recession
Barack Obama
Economists: White House Mortgage Plan Is A Good, But Modest, Plan
President Barack Obama
"We Can't Wait" is the White House's new economic rallying cry. With Senate Republicans committed to filibustering President Obama's jobs bills, and House Republicans refusing to hold votes on them, the administration is taking some steps that don't require Congress to act.
The most significant of these, announced Monday, will allow people with underwater mortgages to refinance at favorable rates if their mortgages are backed by Fannie Mae or Freddie Mac. It will expand the existing Home Affordable Refinancing Program to all underwater homeowners, leaving people with more money in their accounts every month, and thus, as David Dayen has pointed out, functioning as a de facto stimulus.
Will it move the needle on unemployment though? It depends on whom you ask, but the broad view seems to be it won't on its own fix the ailing economy. But it is expected to jack up the number of mortgage refinancings.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Barack Obama, Dean Baker, Economy, Jobs, Mark Zandi, Stimulus, Unemployment
CBS
Economists: GOP Cites Deeply Flawed CBS Report To Blame Debt On Obama
Top Republicans couldn't be happier with a Monday CBS News report logging the growth in the national debt under President Obama.
The debt was $10.626 trillion on the day Mr. Obama took office. The latest calculation from Treasury shows the debt has now hit $14.639 trillion.It's the most rapid increase in the debt under any U.S. president.
The national debt increased $4.9 trillion during the eight-year presidency of George W. Bush. The debt now is rising at a pace to surpass that amount during Mr. Obama's four-year term.
But this is politically powerful only because it's equally analytically flawed.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Afghanistan, Barack Obama, CBPP, CBS, Dean Baker, Debt, Iraq, Taxes
Medicare
Study: Republicans' Hidden $34 Trillion Tax On Seniors
Rep. Paul Ryan (R-WI) wants Congress to retain control of the fees that the United States Patent and Trademark Office collects and divert them to other government programs.
A new report by economists at the liberal Center for Economic and Policy Research looks at House Republicans' plan for privatizing Medicare from a new angle, and finds that it could increase health care costs for beneficiaries by a staggering $34 trillion over 75 years.
You won't find these expenditures on the government ledger. They represent the amount of money Medicare beneficiaries would have to pay out of pocket if they wanted to buy insurance policies that provide Medicare-equivalent benefits.
The reasoning is fairly straightforward, according to CEPR's Dean Baker and David Rosnick.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Budget, Dean Baker, Health Care, Medicare, Paul Ryan, Taxes
Economy
Economists Say Tax Cut Deal Won't Stimulate The Economy Much
President Barack Obama
Democratic Congressional leaders are steamed at President Obama for locking in a deal with Republicans to extend all the Bush tax cuts temporarily. It's just caving, they say, and it punts the tax cut fight into the next election. But in exchange for agreeing to the extension, Obama got Republicans to agree to a year-long extension of unemployment benefits, and a year-long, two percentage point reduction in the payroll tax, meant to mimic a temporary extension of the tax breaks that were in the stimulus bill. Each of these concessions will inject much-needed demand into the economy. Could this silver lining be bright enough to make the extension of all the cuts worth it?
According to progressive economists, it will help, but won't make a huge dent.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Bush Tax Cuts, Dean Baker, Economy, Stimulus, Tax Breaks, Tax Cuts, Taxes
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