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Mon Jul 30, 2012, 06:41 AM

CEOs and Simpson-Bowles 3.0 -- social security & medicare will be on the table no matter who wins

Last edited Mon Jul 30, 2012, 06:52 AM USA/ET - Edit history (1)

Anyone watching the Washington budget debate over the past decade must have wondered why there didn’t seem to be any grown-ups in the room....Some grown-ups who have been noticeably absent from this conversation have been the heads of the country’s major corporations... (what a fucking laugh)

That’s about to change. Last week, the first battalion of CEOs showed up in Washington, reporting for duty...the breakdown of the Obama-Boehner talks on a grand bargain, the failure of the congressional super-committee — have convinced a number of CEOs that they had to get involved, particularly with a fiscal cliff looming in January.

Last week, the group, calling itself Fix the Debt, went public at a news conference urging the president and Congress to embrace a deficit-reduction plan along the lines suggested by the bipartisan Simpson-Bowles Commission, which included reforms of a tax code that produces too little and entitlement programs that spend too much. “Think of it as Simpson-Bowles 3.0...”

http://www.washingtonpost.com/business/ceos-and-simpson-bowles-30/2012/07/20/gJQAMLfp0W_story.html

Warren Buffett's WAPO won't let me read the rest without registering, but here's a comment from a reader:

Pearlstein says that “the vast majority of corporate executives would jump at signing on to a long-term budget plan that combines entitlement cuts with increased revenue.” Of course they would. Those big supply-side deficits and debt not only gave corporations and the rich huge subsidies, but also they relied on borrowing from Social Security surplus funds, to be paid back from Treasury bonds. The debt is coming due, and the big boys who’ve made out so handsomely don’t want to pay up.

Obtusely, Pearlstein writes that “it’s great that dozens of the nation’s top business leaders have decided to join this fight and put some serious money behind it. “ No Steve, it isn’t. Because the big boys realize that even if they spend $278 million trying to get a budget deal that overlooks what they did to the economy and passes on any punishment, a deal that includes “cuts to Social Security, Medicare and Medicaid” will lessen what they have to fork over, and will “provide the captains of industry a Bain Capital-like return on investment.”

And for them, that’s the bottom line. Money over country. Self over “We, the People.” If the captains of Wall Street get their way, the U.S. is one budget deal away from continued erosion of the middle class and the American standard of living.

"In the next two months, the group aims to raise $50 million to $100 million, mostly from big corporations, to build public support for a debt deal and flush out its details so it can be acted on by Congress sometime after the November elections."


They'll get cuts to SS & Medicare, and anything they give up they'll take back in a later session - but the cuts to the people will remain.

1/3 of seniors depend on SS for 90% or more of their income. 2/3 depend on it for 50% or more.

States are cutting medicaid. SS & Medicare are still on the table.

They won't stop until they get what they want or until there is massive push-back from the people -- that's the bottom line.

They are killing people.

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Reply CEOs and Simpson-Bowles 3.0 -- social security & medicare will be on the table no matter who wins (Original post)
HiPointDem Jul 2012 OP
woo me with science Jul 2012 #1
HiPointDem Jul 2012 #2
fasttense Jul 2012 #3
Zalatix Jul 2012 #4
ZM90 Jul 2012 #5
MannyGoldstein Jul 2012 #6
JoePhilly Jul 2012 #11
MannyGoldstein Jul 2012 #14
JoePhilly Jul 2012 #17
MannyGoldstein Jul 2012 #20
JoePhilly Jul 2012 #25
Lasher Jul 2012 #43
JoePhilly Jul 2012 #44
Lasher Jul 2012 #45
MannyGoldstein Jul 2012 #46
SidDithers Jul 2012 #47
TreasonousBastard Jul 2012 #7
JNelson6563 Jul 2012 #9
JoePhilly Jul 2012 #12
JNelson6563 Jul 2012 #23
hfojvt Jul 2012 #27
TreasonousBastard Jul 2012 #33
HiPointDem Jul 2012 #34
TreasonousBastard Jul 2012 #37
HiPointDem Jul 2012 #38
TreasonousBastard Jul 2012 #42
HiPointDem Jul 2012 #52
Cosmocat Jul 2012 #8
Joe Bacon Jul 2012 #15
kenny blankenship Jul 2012 #24
RebelOne Jul 2012 #40
Cosmocat Jul 2012 #50
JoePhilly Jul 2012 #10
KharmaTrain Jul 2012 #13
Egalitarian Thug Jul 2012 #22
MannyGoldstein Jul 2012 #16
JoePhilly Jul 2012 #18
HiPointDem Jul 2012 #35
JoePhilly Jul 2012 #36
HiPointDem Jul 2012 #39
JoePhilly Jul 2012 #41
HiPointDem Jul 2012 #53
flpoljunkie Jul 2012 #19
NNN0LHI Jul 2012 #21
RC Jul 2012 #28
rks306 Jul 2012 #26
madrchsod Jul 2012 #29
Lasher Jul 2012 #30
SidDithers Jul 2012 #49
MattBaggins Jul 2012 #31
Octafish Jul 2012 #32
WCGreen Jul 2012 #48
RKP5637 Jul 2012 #51

Response to HiPointDem (Original post)

Mon Jul 30, 2012, 06:42 AM

1. Of course they will.

Wake up, America.

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Response to woo me with science (Reply #1)

Mon Jul 30, 2012, 06:47 AM

2. and now is the time to start making a stink about it, because after the elections will be too late.

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Response to HiPointDem (Original post)

Mon Jul 30, 2012, 07:03 AM

3. CEOs are the problem, not the solution.

They need to be rounded up and sent off to their own little deserted Galt island with a copy of the Fountain Head to sustain them.

If we could get rid of all the uber rich CEOs and banksters, this country could function like a democracy again.

Where were these CEOs when Raygun was tripling the debt? Where were theses CEOs when the bushes said deficits don't matter? It's just so convenient that they show up with the stupidest solution to a depression since Hoover's policies and claim to be concerned about the budget deficit. How about they start paying their fair share first and foremost?

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Response to HiPointDem (Original post)

Mon Jul 30, 2012, 07:14 AM

4. As long as we refuse to dismantle our Gestapo police forces, there'll be no push-back from citizens.

 

You'll start to see every protest put down by rubber bullets and dogs, like what happened in Anaheim. More instances of severe beatings like they inflicted upon Occupy.

The people will get put down. Until we learn that we need to eliminate the GUARDIANS of the PLUTOCRATS.

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Response to Zalatix (Reply #4)

Mon Jul 30, 2012, 07:22 AM

5. I think the police should be downgraded equipment wise to how they used to be you know without all

the military grade stuff seeing as how that shit is used specifically for oppression of the citizenry. I am appalled at what a police state the USA has become. Sure Obama is definitely 1,000,000X better than Romney but that doesn't change the fact that the police are way too armed, and brutal protectors of the 1%.

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Response to HiPointDem (Original post)

Mon Jul 30, 2012, 07:32 AM

6. Rep. Conyers: Obama Demanded Social Security Cuts--Not GOP

Rep. Conyers: Obama Demanded Social Security Cuts--Not GOP

The President started this ball rolling when he appointed the two most outspoken foes of Social Security - Simpson and Bowles - to lead a "deficit reduction" commission. The resulting demands for putting America's elderly on a diet of cat food and peas was inevitable. Like sharks, the CEOs smell blood in the water and want their own share of the raid on the Social Security Trust Fund.

Yes, people will die.

Sick, sick, sick.

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Response to MannyGoldstein (Reply #6)

Mon Jul 30, 2012, 07:53 AM

11. FREEBIRD!!!

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Response to JoePhilly (Reply #11)

Mon Jul 30, 2012, 08:05 AM

14. Are you claiming that Conyers didn't state this?

Last edited Mon Jul 30, 2012, 08:05 AM USA/ET - Edit history (1)

Or that Conyers is lying, or that he misunderstood?

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Response to MannyGoldstein (Reply #14)

Mon Jul 30, 2012, 08:13 AM

17. Claiming this is your "Freebird". I count on you to sing it in every "Obama Bad" thread.

The concert wouldn't be the same with out it.

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Response to JoePhilly (Reply #17)

Mon Jul 30, 2012, 08:18 AM

20. So we agree: Obama has worked methodically to cut Social Security.

How do you feel about this?

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Response to MannyGoldstein (Reply #20)

Mon Jul 30, 2012, 08:59 AM

25. You sound like an NRA member claiming Obama is waiting until his 2nd term to take your guns.

And the fact that he hasn't done so yet, is the proof.

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Response to JoePhilly (Reply #25)

Mon Jul 30, 2012, 04:39 PM

43. And you sound like you are afraid to engage Manny in debate

with anything more than your pathetic name calling.

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Response to Lasher (Reply #43)

Mon Jul 30, 2012, 04:58 PM

44. Manny has been singing the same song, with the same unfullfilled prediction, for at least 3 years.

Every month or so, Manny appears with the "Obama is about to kill Social Security" prediction. Its not going to happen.

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Response to JoePhilly (Reply #44)

Mon Jul 30, 2012, 05:34 PM

45. A sad song can be a familiar one.

I don't believe Manny has predicted that Obama will kill Social Security. I know that he said Obama has worked methodically to cut Social Security. How do you feel about that?

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Response to Lasher (Reply #45)

Mon Jul 30, 2012, 08:05 PM

46. Mr. Philly has evaded that question for months

So many do.

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Response to JoePhilly (Reply #25)

Mon Jul 30, 2012, 08:08 PM

47. Nailed it...



Sid

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Response to HiPointDem (Original post)

Mon Jul 30, 2012, 07:44 AM

7. Shoulda read the whole article...

and seen that it's not quite as bad as you think. These guys are meeting to try to get the Republicans to compromise by doing and end run round the lobbying monster that they helped create but got out of control.

You might not like these compromises, but they are a lot better than at least one of the alternatives.


The problem for Corporate America, however, is that the same Republicans who have been so aggressive and uncompromising in pursuing their agenda on energy or trade or corporate taxes turn out to be no less aggressive and uncompromising on issues that business may not agree on, such as eliminating federal funding for education, denying the existence of global warming or destroying Planned Parenthood.

<...>

What would happen if a major company or industry group business organization were to break with the Republican caucuses and lobby for a bipartisan budget compromise? For starters, they might suddenly find that that amendment they were counting on won’t be coming up for a vote after all. And if they persist in such disloyalty, the company lobbyist or top official in such an industry group might discover that there is a quiet effort to get them fired, replaced with somebody more loyal and reliable.

Crazy conspiracy theory? No, it’s actually called the K Street Project, begun a decade ago by House Republican Leader Tom Delay. And if you doubt its effectiveness, just ask former Republican Congressman Billy Tauzin, who was pushed out as head of the Pharmaceutical Research and Manufacturers of America because he dared to strike a compromise deal with the Obama White House on health-care reform.

The reality now facing practical, pragmatic corporate executives is that their Washington lobbying apparatus has become one with a Republican caucus on Capitol Hill that is dominated by ideological zealots and uncompromising partisans. So if they have now concluded that the most important issue for American business, and the economy, is getting a reasonable bipartisan compromise on taxes and spending, their only choice is to bypass that apparatus.


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Response to TreasonousBastard (Reply #7)

Mon Jul 30, 2012, 07:50 AM

9. Didn't quite suit OPs purpose though, perhaps.

And speculation on bad things happening is painted as certainty and of course, there's the subtle meme, "both parties are the same!1!"


Julie

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Response to JNelson6563 (Reply #9)

Mon Jul 30, 2012, 07:54 AM

12. OP also left out this ...

A similar dysfunction, by the way, exists on the other side, where labor unions and the AARP have joined with the leadership and Democratic caucuses in Congress to squash any talk of cuts to Social Security, Medicare and Medicaid as part of a budget deal. When John Rother, the longtime policy director of the AARP had the nerve to declare that some cuts were inevitable, it wasn’t long before he was working somewhere else


This also hurt the "both parties are the same" meme.

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Response to JoePhilly (Reply #12)

Mon Jul 30, 2012, 08:57 AM

23. I'm sure it was just an oversight.

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Response to TreasonousBastard (Reply #7)

Mon Jul 30, 2012, 09:25 AM

27. "you might not like these compromises"

Yeah, that's the point. I, personally, don't like this "compromise".

I don't call Simpson-Bowles a "reasonable bipartisan compromise".

I call it a disgusting capitulation.

Which may be par for the course with the new Democratic Party under Obama's "leadership" but that does not make it any less disgusting.

You are correct though. Getting my right arm broken IS better than getting my left arm broken. But for some reason, I do not consider getting my right arm broken to be an acceptable alternative.

http://www.democraticunderground.com/?com=view_post&forum=1251&pid=42313

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Response to hfojvt (Reply #27)

Mon Jul 30, 2012, 12:16 PM

33. I was thinking the alternative to getting both arms, and perhaps a leg, broken...

I'm not sure how many people understand that the modern welfare state (and we're nowhere close to a real welfare state) is less than 100 years old. Bismarck started it in Germany in the late 1800s and it spread from there in the 20th century, much of it in the postwar years.

So, since the ideas of such things as government care of the poor, dealing with income inequality, national health plans, and such are relatively new concepts, we really don't have that much experience in how all this works out in the long run. Is it really possible to soak the relatively few rich to pay for all this, and can we convince everyone else to chip in at least a little?

The evidence so far seems to be that it's a great idea, and works very well, but as well as it has been working, many of even the best managed countries are beginning to feel the strain of the rising bills, and are raising questions of just what to do about them. Of course, no other developed country has the disparity between rich and poor that we do, so elsewhere things are sort of automatically spread out a little better.

Paying the bills on the backs of the poor is disgusting and several very large steps backwards, but conservative thought has always gone in that direction. The problem we have is coming up with workable solutions that can counter the far too popular (even now) conservative opposition.

Many Brits opposed things like child labor laws and the National Health, but now they are seen as birthrights, as are the safety nets and social programs in the Nordic countries. Woe unto any politician who even thinks of messing with them, so they are being forced into difficult solutions. We haven't quite gotten there yet, but we have to change the debate from how cheap we are to how human (or even, gasp, Christian) we are.

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Response to TreasonousBastard (Reply #7)

Mon Jul 30, 2012, 02:33 PM

34. the article is written by a guy who thinks ceos are the "grown-ups". he's not going to talk about

increased mortality from cuts in social programs.

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Response to HiPointDem (Reply #34)

Mon Jul 30, 2012, 03:10 PM

37. Misery, too. But...

how's your crystal ball on the future of, umm... everything, and what's your realistic plan to solve the problems you see coming.

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Response to TreasonousBastard (Reply #37)

Mon Jul 30, 2012, 03:16 PM

38. The only "realistic" plan is for people to make a big stink. That's the only power they have.

Pointing out that

1) Social security is independently funded and has nothing to do with the federal deficit;

2) Social security fund is owed $2 trillion;

3) war spending and tax cuts to billionaires, the recession cum depression + the casino gambling of said ceos are the reasons for the budget crisis;

4) ceos/pols are using their self-created 'crisis' as an excuse to defund social programs

5) this is a bipartisan effort, i.e. class war by said ceos on most of the populace

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Response to HiPointDem (Reply #38)

Mon Jul 30, 2012, 03:55 PM

42. You do realize that these are the guys who are doing a lot of that? They are...

Last edited Mon Jul 30, 2012, 03:56 PM USA/ET - Edit history (1)

on our side to an extent-- fighting the teabagging wing of the GOP.

These are the people who have the cred to stick it to Ryan and his ilk, and while they won't call for Maoism any time soon, they know the Post Office is broke because of some asshole congresscritters, highways and bridges are falling apart, cops aren't being paid, and every time the private sector shows job gains the public sector shows enough job losses to nullify the gains. They also know that regulation often as not keeps the playing field level so the more obvious crooks can't get a hold on things. they understand fully how the teabaggers are bringing the whole system down, and them with it.

We're talking about people with a very deep and sophisticated knowledge of how things work in the real world, and when their interests coinicide with ours we should take advantage, not whine or dream of perfection.

(Keeping their emotions in check and spotting opportunities for inexpensive wins is how they got rich.)


edit-- grammar

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Response to TreasonousBastard (Reply #42)

Tue Jul 31, 2012, 02:40 AM

52. "these are the guys" = which guys?

"how things work in the real world" = rich thieves steal whatever the hell they want & tell you it's good for you.

"whine or dream of perfection" = are you going to start talking about ponies soon?

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Response to HiPointDem (Original post)

Mon Jul 30, 2012, 07:46 AM

8. Sadly - 50% of the public will get behind this ...

with the chattering "liberal media" leading the charge ...

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Response to Cosmocat (Reply #8)

Mon Jul 30, 2012, 08:08 AM

15. Yes and you can hear the Moron Tabernacle Choir of the Corporate Press right now!

Every one of those press whores is in the 1% along with their CEO pals.

One would think people would take a SERIOUS look at what's going on in Britain to see the double dip caused by austerity. But of course our Moron Tabernacle Choir in the Corporate Controlled Conservative Press ignores that!

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Response to Cosmocat (Reply #8)

Mon Jul 30, 2012, 08:58 AM

24. More than half of them duped into it by Obama

their "Savior"!
LoL

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Response to Cosmocat (Reply #8)

Mon Jul 30, 2012, 03:30 PM

40. That is 50% who will not have to depend on Social Security when they retire.

I am on Social Security, and that is 100% of my income. Fortunately, I have some savings, but that money will have to last me for a long, long time because I do not plan on dying any time soon.

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Response to RebelOne (Reply #40)

Mon Jul 30, 2012, 10:06 PM

50. You have a LOT more faith in people than I do at this point ...

LOTS of those folks who do or will depend on SS will get behind it, out of sheer partisanship.

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Response to HiPointDem (Original post)

Mon Jul 30, 2012, 07:52 AM

10. Why did you leave out this quote from the article?

A similar dysfunction, by the way, exists on the other side, where labor unions and the AARP have joined with the leadership and Democratic caucuses in Congress to squash any talk of cuts to Social Security, Medicare and Medicaid as part of a budget deal. When John Rother, the longtime policy director of the AARP had the nerve to declare that some cuts were inevitable, it wasn’t long before he was working somewhere else


By leaving this out, your OP suggests that the Democrats are trying to cut these programs when Pearlseinm by including it, clearly indicates they are protecting them.

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Response to JoePhilly (Reply #10)

Mon Jul 30, 2012, 08:04 AM

13. Shhhhh...You're Ruining Someone's Agenda...

You can tell it's an election coming up with the fear mongering going on. Maybe it's a good thing to scare and energize voters this way...despite the glaring omissions of the OP. The unfortunate bottom line is the abuses of this economy over entitlements and unless there's a solid Democratic House and Senate entitlement cuts will be on the table...the question will be whose entitlements get cut and how deep...

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Response to KharmaTrain (Reply #13)

Mon Jul 30, 2012, 08:50 AM

22. He seems to be doing just fine pushing this corporate agenda.

Nothing to see here, move along.

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Response to JoePhilly (Reply #10)

Mon Jul 30, 2012, 08:11 AM

16. Many Democrats, from the President on down, are in favor of slashing Social Security

They might not like talking about it the year before the election.

Are *you* in favor of cutting Social Security?

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Response to MannyGoldstein (Reply #16)

Mon Jul 30, 2012, 08:14 AM

18. So you are again predicting the death of Social Security ... maybe the 50th time will be the charm.

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Response to JoePhilly (Reply #10)

Mon Jul 30, 2012, 02:35 PM

35. um -- what? "cuts are inevitable" is the bipartisan line, as is clear from your quote. there's no

suggestion dems are protecting anything.

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Response to HiPointDem (Reply #35)

Mon Jul 30, 2012, 03:10 PM

36. The guy who even discussed cuts was KICKED out.

The quote clearly says Dems are unwilling to discuss cuts.

That fact seems to bug Pearlstein.

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Response to JoePhilly (Reply #36)

Mon Jul 30, 2012, 03:26 PM

39. democrats have *already* discussed cuts: "In debt talks, Obama offers Social Security cuts"

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Response to HiPointDem (Reply #39)

Mon Jul 30, 2012, 03:44 PM

41. So when Pearlstein says Dems won't discuss them, you disagree with him ...

but you also agree with everything else he says / predicts?

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Response to JoePhilly (Reply #41)

Tue Jul 31, 2012, 02:46 AM

53. No, I don't believe him when he says that at present, Democrats & union leaders are refusing

to discuss it. Because they already *have* discussed it & put it on the table.

It's just like when the MSM talks about how Randi Weingarten, president of the AFT, is putting up such "strong" opposition to education reform, when anyone who actually knows what's going on knows that she is selling out her membership at every possible opportunity while saying something different at photo ops.

There has to be an illusion that there are two distinct sides, "fighting". Even when it's just a sideshow to the real action, which is, as Pearlstein has told us: This is what the ceos have decided to do, this is what they want, and the only question left is how can they get what they want without the 90% getting wise to what's really happening.

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Response to HiPointDem (Original post)

Mon Jul 30, 2012, 08:18 AM

19. Pearlstein: A credible budget deal would provide them a Bain-Capital like return on their investment

To pull this off, my back-of-the-envelope calculation is that Fix the Debt will need to raise $278 million. That may sound like a lot of money, but it works out to one-third of one percent of the profits earned last year by the Fortune 500. More significantly, its enough to provide $1 million in political air cover in the next election to each of the 60 senators and 218 House members, Republican or Democrat, who have the courage to vote for a bipartisan budget compromise next year. And by the time the tea party, Grover Norquist and the AARP are finished with them, most of them will need it.

Even at $278 million, however, a credible budget deal would still provide the captains of industry a Bain Capital-like return on investment. The boost it would give to the economy and the financial markets would far exceed any stimulus proposed by either party or either of the presidential candidates.

http://www.washingtonpost.com/business/ceos-and-simpson-bowles-30/2012/07/20/gJQAMLfp0W_story.html

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Response to HiPointDem (Original post)

Mon Jul 30, 2012, 08:30 AM

21. This was inevitable when we began outsourcing our manufacturing to other countries

Last edited Mon Jul 30, 2012, 09:43 AM USA/ET - Edit history (4)

And the jobs we have left are low paying crap jobs.

The workers in other counties who replaced our own high paying industrial jobs don't contribute anything into our programs like SS & Medicare.

So now we are going to be depending on burger flippers and Walmart workers to pay these benefits for future retirees. And those workers do not pay in enough to support our elderly depending on SS & Medicare as they have been used to receiving in the past.

And this wasn't "they" who did this to us. We did it to ourselves when we began demanding that 2 dollar pair of flip-flops or that non-union made whatchamacallit.

This really isn't rocket science.

It is simple economics. About as simple as it gets.

Don

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Response to NNN0LHI (Reply #21)

Mon Jul 30, 2012, 09:31 AM

28. +100. It's the lack of Living Wage Jobs.

No Living Wage Jobs jobs, no real recovery. The only "Solutions" coming out of Washington DC are smoke and mirrors, no matter which side.

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Response to HiPointDem (Original post)

Mon Jul 30, 2012, 09:02 AM

26. SS has not added to debt

Raise the cap to fix SS. We need to join the rest of the world kept pushing for single-payer. Maybe we should tax wall street transactions. Progressive budget does, balances in 10 yrs.

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Response to HiPointDem (Original post)

Mon Jul 30, 2012, 09:42 AM

29. ss and medicare will not be cut.

remember both republicans and democrats receive ss and medicare.

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Response to HiPointDem (Original post)

Mon Jul 30, 2012, 09:54 AM

30. The Simpson-Bowles Commission never reached a consensus.

The Commission therefore did not recommend or suggest anything. This is a familiar lie.

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Response to Lasher (Reply #30)

Mon Jul 30, 2012, 08:14 PM

49. +1...nt

Sid

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Response to HiPointDem (Original post)

Mon Jul 30, 2012, 09:57 AM

31. Not one of those fuckers would propose ending the SS tax

if they slash the program. That's what those fucking fuckers want is to end the program but keep stealing our money.

Fuckers

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Response to HiPointDem (Original post)

Mon Jul 30, 2012, 10:02 AM

32. New Deal means ''Socialism'' to the 1-percent.

The greedhead warmonger class doesn't want a decent society, let alone a Great Society.

The reason? They're stupid cheapskates.

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Response to HiPointDem (Original post)

Mon Jul 30, 2012, 08:12 PM

48. Haven't these so called adults already been sucking hard at the teet of government....

And paying next to nothing...

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Response to HiPointDem (Original post)

Mon Jul 30, 2012, 10:10 PM

51. Now they're going to start this bull shit up again. The US is so fucked

by people like this.

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