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February 13, 2012
Binyamin Rose: Back to the Bunker: How a life-risking act by a Christian family during the Holocaust saved a family and built a thriving community a world away
Menachem Wecker: Business Schools Teach Real Estate Despite Troubled Housing Market
February 10, 2012
Lisa M. Krieger: Man with defibrillator demands access to his own heart's information
David G. Savage: Why activists may not be in a hurry to have High Court rule on alternative marriage
February 9, 2012
Laura McMullen: 10 Least Expensive Public Schools for Out-of-State Students
Kimberly Palmer: How to actually enjoy -- relaxing, financially -- your vacation
February 8, 2012
Warren Richey: Why momentous Prop. 8 ruling might not satisfy gay-rights groups
Menachem Wecker: Though Controversial, LL.M.'s Can Lead to Specialized Legal Jobs
The Kosher Gourmet byDana Velden: Going to the bother of making soup? You know it better be good. This CREAM OF TOMATO SOUP certainly is! And it's a cinch to make, too (Includes techinques and serving secrets)
February 7, 2012
Frank J. Gaffney, Jr.: Caught off-guard? President's Super Bowl interview with Matt Lauer gives those who need a reason not to vote for him, a darn good one
Suzanne Bohan: Leaping lizards! Tiny reptiles advancing robot design
February 6, 2012
Jonathan Tobin: Iran Threatens Israel With Destruction, But the New York Times Doesn't Hear It
Jeffrey Fleishman: In newly democratic Egypt, tens of democracy activists jailed, to stand trial; their groups are 'threatening the stability of the homeland'
Julie Deardorff : Researchers say antioxidants may not be that effective and could do more harm than good
Mark Clayton: How did Anonymous hackers eavesdrop on FBI and Scotland Yard?
February 3, 2012
Edmund Sanders : Israeli official says Iran is creating missile that could reach East Coast of US
Victoria Kim: Immigrant-smuggling ring used black drivers to avoid racial profiling
February 2, 2012
Jim Carney: Wrong number call may have saved her life
Reza Kahlili : Ex-CIA spy in Iran's Revolutionary Guard: What Obama doesn't grasp about striking deals with Tehran
Tina Susman: For woodchuck rescuer, every day is Groundhog Day
February 1, 2012
Brian Bennett: US officials see increasing threat of domestic attack from Iran
Emily Brandon: How to Take Advantage of New 401(k) Fee Disclosures
January 31, 2012
January 30, 2012
Paul Richter and Ramin Mostaghim: Misreading Teheran's limits -- deadly and economically devastating as they may be -- is a risk administration, Europe seem willing to take
Suzanne Bohan: Warning: Nap-deprived tots missing more than sleep, study finds
Meg Handley: Banks Revamping Rewards Programs to Woo Customers
January 27, 2012
Caroline B. Glick: Obama: Of course I intend to prevent a nuclear holocaust . . . in a few months
Yochonon Donn: In liberal New York City, fervently-Orthodox Jews may soon be getting a district to call their own
Jeannine Stein: An inflated ego and thinking you're 'all that' doesn't just make others sick of you, it can make you ill
Katy Hopkins: New budget rules may affect how much money you get for college
January 26, 2012
Ed Koch: To the New York Times, calling for the murder of Jews by those capable of having their incitement taken seriously isn't news
Jeannine Stein: Mental illness struck one in five U.S. adults in 2010: Report
January 25, 2012
Richard Simon: House passes two bills endorsing the use of religious symbols at military memorials
Fred Weir: Putin: Multiethnic Russia cannot survive as a US-style 'melting pot'; must find its own way
Susan Johnston: 5 Sneaky Coupon Strategies Consumers Should Watch Out For
January 24, 2012
Carol Clark: The price of your soul: How your brain decides whether to 'sell out'
Caroline B. Glick: America lost most in 'Arab Spring'. Sadly, many voters still don't grasp the extent
Warren Richey: Drug criminal scores win in GPS ruling from conservative-leaning high court
Erika Bolstad: Black conservatives gather to talk about gaining strength
January 23, 2012
Melissa Dribben: Jewish voters to play a key role in Florida's Republican primary
Jordan Rau: In quest to grow, Catholic hospital system will announce this morning its break from church
Ali Safi: U.S. envoy gives Taliban terms for peace talks
January 19, 2012
January 18, 2012
January 17, 2012
Frank J. Gaffney Jr.: No-kidding red lines: U.S. response to an Iranian nuke may be bluster, but Israel's won't be
David G. Savage: They sued their principals after slandering them online --- now the cases are headed to the Supreme Court
David Francis: Where to Invest in 2012: With stocks expected to rebound, opportunity abounds for investors
January 13, 2012
Ben Lynfield: Israeli lawmakers move to annex Jewish Judea, one museum at a time
Alexia Elejalde-Ruiz: Thriving through touch: Gentle massage helps older people with low mobility improve in mind and body
January 12, 2012
Warren Richey: Landmark Supreme Court ruling a 'resounding win' for religious groups
Warren Richey: Supreme Court says no to new rule on eyewitness testimony
John Fauber : Statins found to raise diabetes risk in postmenopausal women
Katy Hopkins : Consider This Before You Pay for an Online Degree
The Kosher Gourmet by Joseph Erdos: This mushroom and barley soup has an intense -- almost nutty -- flavor that mixes robust with Middle East. It has creaminess without cream
January 11, 2012
Shari Roan: Millions of atrial fibrillation sufferers at risk for devastating, but preventable, stroke
Tom Hussain: Pakistan -- recipient of more than $21 billion in civilian and military aid -- speeds pursuit of Iranian pipeline, defying US
David G. Savage: High court signals it won't be loosening TV's 'indecency' rules
Stephen Ceasar: Oklahoma's Islamic law amendment can't go into effect, court rules
January 10, 2012
Reza Kahlili: From an ex-CIA spy: US must exploit new split in Iran's Revolutionary Guard
Karen Kaplan: Study: Nicotine replacement products ineffective when used in real-life situations
January 9, 2012
Michael Doyle: Put through legal hell over dream home, couple fought back hard --- all the way to Supreme Court
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Jewish World Review
March 8, 2009
/ 12 Adar 5769
A cool look at those trillions
By
Kathleen Parker
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http://www.JewishWorldReview.com |
Nobody knows.
If the publishing system allowed, I'd type those words in squiggly lines for full effect. Whether one is talking to a Ouija board, a Magic 8-Ball, an economist or the president of the United States, the answer is the same. Nobody knows.
And the question is: Will the U.S. economy bounce back after trillions in rescue, recovery and spending?
It's all a gamble. The Republican attempts to "starve the beast" slash taxes and force government spending cuts didn't work because spending never got cut. So now, apparently, we're going to feed the beast.
As we cross our fingers (and our toes), our minds warp at the concept of trillions. What is a trillion, anyway?
Chris Martenson's online "Crash Course" in economics explains a trillion this way: First, picture a million dollars as a four-inch stack of thousand-dollar bills. A comparable billion-dollar stack is 358 feet tall. A trillion-dollar stack of thousand-dollar bills stands 67.9 miles high.
So, yes, that tightening you feel in your gut is a perfectly rational response. Trillions in government spending, while raising taxes on those who do the most to drive the economy (hiring and investing in risky markets, for instance), is a frightening proposition. Or is it?
That question led me to sit down with Matt Miller, one of the saner voices amid the cacophony. Miller, who so strongly resembles Tom Hanks that you want to ask him about "Wilson," isn't a shouter. A former Clinton budget aide and author of "The Tyranny of Dead Ideas," he finds the hysteria over Obama's proposed budget misplaced.
Upfront, he says that Obama isn't coming completely clean on taxes. Everybody, not just the richest, will have to pay more taxes in Obama's second term (assumptions pending), owing to the strain that retiring baby boomers will put on Social Security and Medicare. Miller figures that Obama is hoping that by then, enough people will be pleased with the government his administration has put in place that they won't mind paying for it.
In the meantime, Miller says that the key to assessing whether the budget is terrifying or reasonable under the circumstances is by examining spending, taxes and deficits as a percentage of gross domestic product.
Spending as a share of GDP in 2009 will increase from 21 percent last year to 27.7 percent, which Miller concedes is "scary." But the 10-year spending average under Obama's plan (assuming reasonable recovery) will be about 22 percent of GDP the same as under President Ronald Reagan.
Tax rates, which will return to Clinton levels in 2011, also shouldn't be alarming, says Miller.
"We know from the Clinton boom of the 1990s that marginal tax rates of 39.6 percent put no brakes on entrepreneurship or growth. And the modest limits Obama is proposing on the value of itemized deductions for mortgage interest and charitable donations puts their value exactly where they were under Ronald Reagan, which no one would say was a 'socialist' interlude for the U.S. economy. So everyone jumping up and down about how supposedly 'radical' Obama's plan is should calm down and look at the facts."
But, I asked, how about this: If deficits are the problem, why not cut spending and taxes, rather than increase spending and impose higher taxes on higher earners to drive the economy?
Because businesses and individuals are pulling back and don't have enough discretionary money to stimulate the economy, says Miller. And thanks to the huge deficits bequeathed by the Bush administration, he says, we have no choice but to run even higher deficits for a few years to get the economy out of the ditch.
Feeding the beast, in other words, is unavoidable. But will it work or will we all be speaking French and eating moldy cheese in two years?
To the "nobody knows" chorus, add at least one strong dissenting voice. Miller says that though stimulus efforts may or may not work, Obama is doing the right thing with the budget.
And no, we won't be socialists when it's all over. There will still be room for a "cowboy economy," he says.
I can't say that I suddenly have a yippee-kay-yo in my heart, but Miller's less scary scenarios, based on facts rather than rhetoric, help tamp down the impulse to build a bigger bunker. If Miller wants to be heard in Rantville, however, he may have to start shouting.
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