Ever since Trump’s abominable “Big Beautiful Bill” emerged from the House, we’ve been buried in analyses of what it will do–essentially, rob the poor to further enrich the obscenely wealthy. But I continue to think about the initial reaction of Paul Krugman. What did this Nobel-prize-winning economist think in the immediate aftermath of the House passage?
Krugman began by noting that he’d expected House Republicans to pass this “surpassingly cruel, utterly irresponsible budget” in the dead of night, in an effort to escape notice. And as he said, “they tried! Debate began at 1 A.M., and if you think that bizarre timing reflected real urgency, I have some $Melania coins you might want to buy.”
The House has now passed what must surely be the worst piece of legislation in modern U.S. history. Millions of Americans are about to see crucial government support snatched away. A significant number will die prematurely due to lack of adequate medical care or nutrition. Yet all this suffering won’t come close to offsetting the giant hole in the budget created by huge tax cuts for the rich. Long-term interest rates have already soared as America loses the last vestiges of its former reputation for fiscal responsibility.
What struck me most about Krugman’s reaction to this massively irresponsible–indeed, evil–budget was his enumeration of what that budget ought to look like. Krugman isn’t one of the “fiscal scolds” who want to eliminate all deficit spending, but he is worried that the U.S. is on an unsustainable fiscal path–a path that this horrific bill will worsen. He acknowledges that the path to fiscal sanity will require some hard choices and tradeoffs. But he also insists that we could immensely improve our current situation with a series of easy choices, “actions that would mainly spare the middle class and only hurt people most Americans probably believe deserve to feel a bit of pain.” He proceeds to list four of them.
First, get Americans — mainly wealthy Americans — to pay the taxes they owe. The net tax gap — taxes Americans are legally obliged to pay but don’t — is simply huge, on the order of $600 billion a year. We can never get all of that money back, but giving the IRS enough resources to crack down on wealthy tax cheats would be both fiscally and morally responsible, since letting people get away with cheating on their taxes rewards bad behavior and makes law-abiding taxpayers look and feel like chumps.
As he notes, Republicans are doing the opposite, by starving the IRS of resources and trying to make tax evasion great again.
Second, we could crack down on Medicare Advantage overpayments. The insurance companies running Medicare Advantage game the system and get overpaid; one recent estimate found that Medicare is at risk of overpaying Medicare Advantage plans between $1.3 trillion and $2 trillion over the next decade.
Third, Krugman advises going after corporate tax avoidance, especially by multinational firms using strategies to make profits that are earned in the United States look as though they were earned in low-tax nations like Ireland. “Such maneuvers cost the Treasury around $70 billion annually.
And finally,
We should just get rid of Donald Trump’s 2017 tax cut. That tax cut wasn’t a response to any economic needs, and there’s not a shred of evidence that it did the economy any good. All it did was transfer a lot of money to corporations and the wealthy. Let’s end those giveaways.
Would doing all these things be enough to put America on a sustainable fiscal path? Honestly, I don’t know. But they would make a good start toward putting our fiscal house in order. And none of them would involve the “hard choices” fiscal scolds tell us we need to make.
As Krugman concludes, the politicians who aren’t even willing to do these things have no business lecturing anyone about fiscal responsibility.
Krugman doesn’t speculate about why we don’t do the “easy” things, but I will. We don’t do them because we have elected people who don’t consider themselves representatives of the people who voted for them, but obedient servants of the plutocrats who funded them. And nothing will change until enough of those voters send an unmistakable message to the cowards and quislings that “time’s up.”
I’ve previously quoted a scholar whose research suggests that peaceful protests by 3% of a population are enough to send that message. That translates to something like ten million people. Our next chance to achieve that goal is No Kings Day, tomorrow.
Please participate. Time is running out to save the America we thought we inhabited….
“The phrase “to secure the blessings of liberty to ourselves and our posterity” from the US Constitution’s Preamble means to ensure that the benefits and freedoms associated with liberty are protected and enjoyed not only by the current generation (ourselves) but also by all future generations (posterity). It’s a commitment to preserving and passing on the values of freedom and individual rights to those who come after us.”
The General welfare clause” refers to the overall well-being and prosperity of society as a whole. It encompasses public health, safety, morals, and peace, and includes social programs like Social Security, Medicare, and unemployment benefits. Examples include investments in infrastructure (roads, public transportation), education, environmental protection, and public safety measures.”
https://www.acslaw.org/wp-content/uploads/2018/08/ACS_KeepFaith_Chap-4.pdf
So what to do with individuals who completely ignore the written governance of the country?
Can someone please explain this comment to me. I have an Advantage Plan and am very satisfied with the coverage as well as the payments to me, and those payments paid out for for me. “Second, we could crack down on Medicare Advantage overpayments. The insurance companies running Medicare Advantage game the system and get overpaid; one recent estimate found that Medicare is at risk of overpaying Medicare Advantage plans between $1.3 trillion and $2 trillion over the next decade. “
“So what to do with individuals who completely ignore the written governance of the country?”
John; the current active solution is for a few brave judicial activists to file charges citing the “…written governance of the country” which the MAGAs immediately file appeals to stop…and we wait as most appeal courts put the ball back in Trump’s “court” while they mull over the issue.
The latest is the issue of Trump removal of Gov. Newsom’s control over California’s Nation Guard, whose job is the protect the residents of California under the Governor’s leadership, not arrest residents. While the films of the physical attack on CA Senator Padilla while doing his job was making headlines the charges to end Trump’s control of CA’s National Guard upheld the return of control to Gov. Newsom and the appeals court returned control to Trump while they briefly mulled. This was done overnight while most of the country was asleep. Personally, I went to sleep knowing the wrong had been righted, if only temporarily, then woke early to find the wrong was back in control. I’m too old to spend sleepless night trying to keep up with the criminal leadership of this country and the fears I live with during my days are wearing me down.
As I understand it, less than 50% of Americans know what is in this bill, and when they learn about it they are overwhelmingly opposed to it.
To me, the most frightening “poison pill” that is hidden in this bill is the clause that neuters the remedies of the courts; that they will not be able to enforce any sanctions against the government when the government is ruled against. This, and the immunity that Roberts has given out, is the whole ball game. If that passes we will no longer have co-equal branches of government.
Roberta, of course you are satisfied with your Advantage Plan. You are not the one paying for it; the government is the one getting over-charged. In the end we are all paying for it through the Big Ugly Budget. Another failure on the part of Congress and the news media.
JoAnn,
Interestingly, they pick a time when there are an inordinate amounts of stressors plaguing the citizens of this country. People are trying to survive, and they find it difficult to fight for something that shouldn’t have to be fought for.
Will the military stand up and refuse unlawful orders? I mean, that’s what everyone said about the Nazis, that the soldiers didn’t have to follow unjust orders. Unfortunately this seems to be the path of least resistance. No one wants to push because the pushback could be uncomfortable. And I believe everyone feels that they can ride it out, well maybe not everyone.
The folks that I’ve known for much of my life, are going through so much just like myself and my family, they are just tired. Losing children, losing siblings, losing their mates, being taxed to oblivion, having their food supplements taken away, and the tariffs are driving up the cost of groceries. It’s surprising how much of our food is actually imported.
You saw how they wanted to make an example out of that judge in Wisconsin, that she could be prosecuted and did not have jurists immunity. That right there freaks out plenty of judges. They don’t want to end up in prison with those that they’ve sent there.
Just like a mobster, those judges get phone calls, and I’m sure they understand the ramifications of anything that they do as pertaining to their personal lives. The only remedy well I could think of a few, would be the military revolting against cruel and unusual behavior by the executive. He could be convicted by a military tribunal along with all of his lackies. But then you have to wonder about the length of military control. The powder keg has been lit.
There are battalions of fighters in different parts of the country, that are just itching to get something started. And more than likely, the military will have to get involved in one way or the other.
“In answer Jesus said to them: “Look out that nobody misleads you, 5 for many will come on the basis of my name, saying, ‘I am the Christ,’ and will mislead many. 6 You are going to hear of wars and reports of wars. See that you are not alarmed, for these things must take place, but the end is not yet.7 “For nation will rise against nation and kingdom against kingdom, and there will be food shortages and earthquakes in one place after another. 8 All these things are a beginning of pangs of distress.9 “Then people will hand you over to tribulation and will kill you, and you will be hated by all the nations on account of my name. 10 Then, too, many will be stumbled and will betray one another and will hate one another. 11 Many false prophets will arise and mislead many; 12 and because of the increasing of lawlessness, the love of the greater number will grow cold. 13 But the one who has endured to the end will be saved. ”
“Matthew the 24th chapter”
I’ve seen plenty of these claiming to be doing the will of God, but actually doing the opposite. When you have someone climbing to be the son of God, we know that person is a liar. And yet you see it on posters and advertisements, and even coming out of his own mouth. It just kind of shows me that we’ve reached an inflection point. A person believes what they want to believe, that’s the great thing about being a free moral agent. We get to choose what side of the fence we want to be on.
James, numerous videos are circulating of the public hearings taking place in Washington, where committees are asking their Republican colleagues about the BBB, and they can’t, or won’t, admit to what’s in the bill. Based on many of the responses, I don’t think the oligarch’s representatives even read the bill. They don’t even have a cursory idea of what’s in it. As Sheila pointed out, they passed it in the middle of the night and without much debate.
In many of the videos I’ve watched, progressive Melanie Stansbury from New Mexico stands out as a brainiac! She’s slaying the Republicans in her seat on the Oversight and Accountability committee. She’s also slaying Donald Trump.
https://www.youtube.com/watch?v=cMsH7h8d_QQ
I think the problem here is that many people want to stop the mess we are seeing and want to know what they can do. Well, in a democracy, that we claim to be, our remedy is showing up at the polls. However, the people have elected Republicans to “serve” as their representatives because they honestly believe they are the best people to serve their interests.
This is why we now have corrupt Techno-Fascists running this country. They identified the weakness of our democracy — the people, or voters. They are leveraging this weakness and taking advantage of it. Until the people know better, they’ll get the government they deserve. Donald Trump is the perfect representative of the United States of America in 2025. That’s the best we got and it’s why China and Russia are buying gold instead of US Treasury Bonds.
The Constitution, in its preamble, lays out the intentions of our founders: to achieve a more perfect union, establish justice, ensure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty for themselves and their posterity.
It’s clear, even to someone without extensive legal training, that Trump has misused our government for his purposes, placing undue burdens on us.
He has his hired hands to assist him, and what he required was unquestioned loyalty to him as a highly flawed person who has never worked a single day in his life.
What we ought to notice while this is going on is that Trump, his hired hands, and millions of us not only don’t see what is wrong with this deal but believe that they don’t deserve what the Constitution has, until now, given them by protecting their rights, and they are proud to give them up!
According to a historical account, a lady named Mrs. Powel asked Ben Franklin what kind of government had been established by the Constitutional Convention as he left the proceedings. Franklin’s response was this succinct and cautionary remark, “a Republic if you can keep it”, emphasizing the importance of the people’s responsibility in maintaining the newly formed republic (a government without royalty).
Can we keep it?
Just so you know:
1) Medicare Advantage is great until you really have some serious health problems. That’s when your doctor will have to fight like crazy to get anything approved. You’re putting your life in the hands of an insurance company whose first interest is their own bottom line.
2) I can’t remember a time when a big bill, regardless of its relative attractiveness, has been read by most of the Congress, much less the public. Most of any bill is a slog to get through and what you find is that the offensive parts consist of a single sentence inserted where you wouldn’t think to look for it. I read Obama care, all one thousand pages, before the vote. My job was to let the Secretary know how the bill might affect the Department. Someone from every part of every agency got the assignment to read and report. The Secretary would then inform friendly Congressmen and women what we found.
3) Biden got more money to hire auditors for the IRS. They made a lot of money in the short time they were allowed to do their jobs. They are among the first to be DOGED. Nobody paid attention because nobody likes the IRS.
These are scary times. I seriously doubt that this group of grifters would be moved by any number of people protesting, but let’s see if we can get 10.2 million out to protest on No Kings Day.
Personally, I’m praying that the officers who chased the farmworkers out of the strawberry fields choke on the next strawberry they eat.
theres a need for the rich to pay, they literally stole our wages thru laws and lawyers who were paid to do just that. no matter how its done, the working class made those profits and became the best at making those profits. over my life of working since i was 12, ive made by standard to the buck, less every year. this isnt a disguise, its a propaganda world where the rich have taken the minds of the least interested in their future and bash those who do take stock in their future. cheap rehetoric, pox news and memes of stupid have become the life of the lazy and infunctional to our democracy and make a joke out of it, any you tube jibe at any liberal is proof. the fact is, there is 50 trillion locked up in the domestic stock market, how much is sitting idle in the form of just rolling over vasts amounts of profits to the few, and garners nothing to main street thru our wages/leginimate taxes as we display our dissaticfation to this, fact we have no price control, i left a auto repair shop and was in the buying of parts to repair cars and light trucks, fact, those big suppliers sell, you pay 2-300% over the cost of the warehouse costs.the major stockholders of any corp have made it a fact, max profits and screw the pubic.the hired so called elected made to account to the alec /hertitage and other non democratic institutions that have become the NSWPP without any socialism. or, no workers, just paid henchmen who demand we submit to the authority of a madman. hense, the mad men of those mentioned above. how much better would we be if we expanded the minority groups in America after the civil war? instead of whittey kicking some one to the curb for personal satisfaction? if you never lived in a ghetto and lived side by side with who Dr King led some out of, you never found why they were left behind. fact is, if we expanded the working class to todays needs, we wouldnt have our money mocked up by degenerates who believe we should be kissing their ass every second of every day. moraly, there is none. at least no with power of the political parties today to ignore what we died for and live to watch as a piece of crap leads our country into a police state with his cosplay cabinet. the strong arm of ice and etc are now ligitimizwd as the new guestapo. there is no other word for it. ask that guard soldier, are you ready to kill us as we defend your democray? if the demos rode on the facts of whos screwing who, i feel many of the magas would get a taste of what we have been hammering about for decades.but then again, paid media will demand we dont discuss this with out the new threat from cosplay democratic police states brewed by commercial media.
Pain is the only thing that produces real change in America. Whether it is the pain of boycotts from the 1950s and 1960s that helped move civil rights legislation along or the pain of aging the true cost of the Vietnam war brought home each evening on television or the active criminality of the administration during Watergate…there are too many examples to note. This time around, despite allegiance to the cult like figure of this President, citizens will have to suffer true economic pain. Then and only then will they inflict that pain on the ignorant fools they voted for.
Wonderful post, Sheila!
You have focused on the problem of our times: Fiscal Irresponsibility, coupled with expert Paul Krugman, you have noted the weakness of our nation: Political Corruption.
Ramming a budget through Congress to “…rob the poor to further enrich the obscenely wealthy…” and thereby replace “We, The People” as the centerpiece of our nation with the obscenely wealthy and corrupt corporations is central to our Republic’s failures.
By sharing Krugman’s points:
First, get Americans – mainly wealthy Americans – to pay the taxes they owe;
Second, we could crack down on Medicare Advantage over-payments;
Third, Krugman advises going after corporate tax avoidance;
We should just get rid of Donald Trump’s 2017 tax cut.
you have captured clear, succinct, simple solutions.
BRAVA, Sheila, BRAVA!
The economic analysis is wasted energy. Until the impacts are felt and seen, it is just academic and too bothersome to understand. When it is real….closed rural hospitals, eliminated healthcare, unnecessary deaths of family or friends….then Congress will “save” the day. It’s a political game to them.
Yeah. Very informative post today… and very depressing. Seeing Marx’s prophecies taking shape breaks my heart. The more I see of Trump using the military for law-enforcement, the more I see NAZI Germany.
Remember when the orange monster said we won’t have to worry about voting ever again? Do you think he was just joking or shooting off his mouth for the fun of it? Watch for a series of crises where the monster will declare martial law and suspend elections and the Constitution. But his diseased brain cannot/will not envision the consequences of these actions. The civil war has already started in Los Angeles. It will grow and expand as this “government” continues to throw up on itself and disgrace the majority of good people trying to do the right thing.
The Republican-led House and Senate are openly displaying how they’ve been coopted by bribes from corporate/banking America. History shows us that EVERY time Republicans have gotten their hands on our economy, they screw it up. This BBB will be the worst economy-destroying legislation since Lincoln was killed. All indicators point to the collapse of our economy when China – who holds all our “paper” – decides to say F. U. and takes over the world economy at our expense.
Anybody here have something that tells me I’m wrong?
So, anybody going to the rally tomorrow? We are.
Bill Bailey…you have “come home”…kudos!
Vernon. You are absolutely right about the threat. I haven’t yet abandoned hope that the worst can be avoided…emphasis on yet. This weekend is important. Once hope is abandoned, there is no incentive to resist, but I believe there are millions of Americans who are just beginning to wake up to the threat. I can’t explain why it has taken them so long. I can only hope their awareness will not be too little too late.
Yes, Sharon. I guess my alarmist rhetoric is intended to warn and motivate people to resist. I’ve fought my entire life against wrong-doing, ignorance and incompetence, so it’s not in me to quit. The term, “my last dying breath” still resonates with me … and, hopefully, many others.
It’s going to be 94 degrees in Denver tomorrow, but my water bottle and I will be in front of the capitol along with the thousands of others protesting the NAZI takeover of our country. I’ve marched and carried signs in the decades past too, so I’ll bring all that “experience” to the protest tomorrow.
I hope all of you will find a way to do the same thing.
PLEASE, PLEASE….will someone say “how and when will we know that the June 14 protests” have made a material difference? Got my hearing aids in and my binoculars at the ready…..
From the Boston Globe today:
Buried in President Trump’s Big Beautiful Bill Act, among the hundreds of pages of tax breaks for the wealthy and Medicaid cuts for hardworking people, is a ban on any regulation of artificial intelligence by states or local governments for 10 years: “[N]o State or political subdivision thereof may enforce … any law or regulation … limiting, restricting, or otherwise regulating artificial intelligence models, artificial intelligence systems, or automated decision systems.” That means for 10 years, as tech companies make AI more and more powerful, congressional Republicans want to leave workers powerless to react to how AI affects their lives and livelihoods.
Lester, we’ll all expect a detailed report from your observations. What sort of “material” should we be looking for?
Todd, I agree that Melanie Stansbury is stellar. Let’s hope we have a democracy in the years ahead where she can be a leader.
All I know is that my spouse and I pay more taxes to the US than the billionaires because we are citizens and some of them are not. TAX THE RICH.
A result of the nationwide protests against Musk and Doge did have an economic hit against Tesla. I’m not condoning the violence and incendiary weapons, but Musk backed off. Also, the mass demonstrations against the overreach and corruptness of the trump administration are a big boost to the Americans on the front lines in Government who are daily putting up with tremendous stress to do their jobs. Representatives, Senators, Judges’, Lawyers and their supporting staff notice and are encouraged; in other words, demonstrating the anti-authoritarian and dictator stance shows solidarity and boosts morale for the Democracy and rule of Law Cause.
Trump trying to take over the governing of California with military and national guard force and roughhousing a US senator who was speaking up in a public meeting is so wrong. These events need to be shown for what they are, violations of US Constitution and un-American. Take them to court and keep the spotlight on their overreach, back them off.
I know Maga is gunning to stir up violence so trump can call the insurrection act, which is temporary; hoping that Congress would follow suit and enact Marshall Law. That has to be understood and acted accordingly by protesters. Stand up for our rights and keep the Peace!
I spent yesterday evening with Common Cause Indiana watching a screening of a new documentary film called Vigilanties, Inc. followed by a panel discussion with the filmmaker Greg Palast. It is about the evolving science of voter suppression, and it is damn depressing. These demons have been at it since before the revolution that brought our country into existence and they are still at it.
For any ladies that haven’t been paying attention, the “SAVE Act” is aimed to disenfranchise as many as 70 million of you. It is the latest gambit in the game.