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August 1st, 2011
10:51 AM ET

Debt deal then and now: Comparing Congress and the White House

With a debt deal in place and a vote on the plan expected to happen in the next few hours, could the past be any indication of our debt future?

On American Morning this morning, we look at the current political process in Washington through a historical lens. Ali Velshi talks to Nick Ragone, author of "Presidential Leadership: 15 decisions that changed the Nation" and Presidential historial Doris Kearns Goodwin about how the current debate compares with past debates.

Filed under: Budget • Debt • Debt ceiling • Deficit
soundoff (One Response)
  1. Ravi Sao

    Comments: I thing it is absolutely wrong to make cuts in this dire economic environment. What we should do is to create a plan to boost this economy with the right dose of stimulus –
    1. Give corporations a tax credit like Germany did, to reduce unemployment.
    2. Cancel Bush Tax cut of 2003 and go to Clinton Tax formula with 3 million estate tax cap
    3. Invest in infrastructure and begin all projects simultaneously to put people to work. You may want to get private sector involved in this process.
    4. Housing Problem: Give Tax credit to ALL investors with high depreciation e.g. 25% (for a limited time of 5 years) so they can buy all these houses and give relief to the Banks.
    5. Set up a new Tax – Consumption tax, maybe 1% ( this is for everybody) including each security transaction.

    If more people are employed, the Treasury receipts will increase and unemployment expenses will be reduced dramatically. This will boost the moral of people and consequently they will spend money thereby boost the economic climate. Also, Treasury will receive new revenue from the Taxes and the consumption tax – our deficit will be reduced to ZERO, ONLY if new money comes in. At this point a flat income tax 5% can be imposed, if necessary, to reach positive Balance of 1 Trillion Dollar at which time the U.S. Government will have an option – Lock this Balance as a safe guard against any calamities and then reduce the Income Tax to 1% or even abolish completely.

    The budget cut will proliferate through out all industries, create high unemployment and havoc and U.S. will lose number one spot in the world. You have already seen some corporations announcing job cut – Merck 10000, HSBC 30000, Crdeit Suise and many more….

    Remember, you can not disregard the Human Resource. Republicans have made a blunder and the next election will show the results of their behavior. Cutting medicare, Medicaid and Social Security means loss in the faith and principles of US Government obligations. Of course all loop holes, if found, not corrected immediately means you are the party of this mistake in first place.

    August 2, 2011 at 7:58 am |