New Direction

Paul Krugman and Brad DeLong are very good economists, but they make a vast mistake in assuming the National Debt is unimportant, and can be ignored. Mark Thoma would seem to side with Krugman and DeLong, Tyler Cowan seems to possess greater doubts as to the efficacy of abandonment of Rubinomics.

My position remains that the National Debt must be reduced in order to cut Inflation(you could check back in the Dark Ages for a book I once wrote about the causes of Inflation), and to restart real Production in this Country (think reduction of Current Account deficits here). The Krugman thesis states: The Republicans spend and buy Votes, so should the Democrats! I sincerely believe there is something wrong with this proclaimed Political Truth.

The National Debt must be attacked upon three levels: cutting the Cost of Social programs (but not their benefits and promise), restructuring the Federal Tax system (eliminating the Tax Escape system, and introducing a fairer system), and cutting Waste and Pork-barrel Spending. The reduction in Cost from the Social programs will come from controlling the Profit margins in Health Care, introducing unitary benefits for Enrollees ( think placing mandatory limit on Benefit awards), and controlling Wage and Salary awards of Social program Providers (think Health Care; example: set Rule that Doctors can get no more than $200k per year of Government payments for Social program beneficiaries–to get any payment, they must accept a Government-dictated number of Patients). The Tax system must be fixed, or We will never achieve fiscal balance; I am such a Hawk on this issue that I would eliminate even the Personal Exemption, replacing all Tax escapes with lower rates of Taxation. The cutting of Waste and Pork-barrel requires some degree of restraint by Congress (like granting every Representative and Senator only a set amount of discretionary spending for each Congressional term, but a longer Statement that all tenure of said Individual must match this Spending lid, else all Congressional Retirement benefits are void).

The keyword in this discussion must be a practice of Self-Discipline on the part of Our Elect, based upon a real demand (enforced) by the Electorate. Democrats will be seen viable as Party and ideology if they clearly articulate their Goals. They will be viewed as only Beltway politicians if they do not provide a new Program which the Electorate can watch and understand, adding up the Advantages. lgl