Starve the Beast

Back in the day, a key feature of Reaganomics was the idea of “Starving the Beast”.  What this means is the government enacts tax policies that reduce revenue to force operating with less money – or they have to deficit spend.  Obama is a huge fan of Reagan, by his own admission.  Does this mean he also subscribes to “Starving the Beast”?  It would seem so, considering the extension of the Bush tax cuts combined with the reduction in payroll taxes for Social Security.  This plan also had the added benefit of hurting the lowest paid in the economy by doing away with the “Making Work Pay” tax credit.  The “Making Work Pay” tax credit was aimed at the lowest earners in the form of a tax credit of 6.5% of earnings, for those earning up to $75,000 per year and was funded through the stimulus. 

The next phase of starving will come with budgeting of constrained resources and looking for ways to “save” money.  The republicans will tell us we HAVE to reduce the “entitlements” to “live within our means”.  Obama will pretend to be all for (so called) progressive ideals and “stuff” (you know, like “we will make stuff and invent stuff” ). 

Meanwhile, the media will provide cover for Obama doing what Obama wants to do by blaming republicans Washington Informer

Republicans in the House and Senate, borrowing a page from Ronald Reagan, plan to stifle President Barack Obama’s domestic agenda by using recently-enacted tax cuts as an excuse to reduce federal spending. 

Yeah, go team.

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