The little deficit that couldn't

Paul Krugman recently posted about how people have been moving away from the deficit as an argument tactic.

I feel like I have already said this.

This is a filler post because I wasn't sure what else to write about today, and it is Sunday, and I just like pointing out when the data points toward what I said a month ago, before Krugman caught on. A little bragging never hurts!

Another way to cut the deficit

This is one of the best graphs I have ever seen, and I used to have it on my wall in my room as motivation to get the best education possible.

This graph has a few political implications, and if we assume our goal is to decrease the deficit it tells us to invest in education so that the median wage and tax revenue can increase. If our goal is to decrease unemployment it tells us the same message, invest in education so more people can be working. If our goal is to have the most advanced economy in the world and be the most ingenuitive,  than making it possible for people to specialize and understand their fields at a deep level where they can contribute is the best possible plan.

Basically the right course of action is the exact opposite of what Republicans, and now Democrats, are proposing to do. Regardless of the deficit.

First you attack the seniors, then you attack the students, and nobody screams

I just read a summary from CPB on the President's budget for education, and he is going to set student interest rates to the market rate. This is bad for several reasons:

1. Sallie Mae is government corporation, and whatever money they make is extra. They don't need higher interest, and making lower interest is a good idea.
2. Tuition has risen so much at state schools over the past few years that college is becoming increasingly unaffordable. The least the government can do is decrease the interest rate which will save middle class families millions of dollars, but putting the rate at such a risk is a terrible idea.
3. The only motivation I can see to tying Sallie Mae interest rates to the market rate is that it will now be easier for large banks to steal a significantly larger share of the student loan market, by offering "discounts" which people will flock to. If everyone uses private banks than it will make it easy for Republicans (or as seems more and more likely, Democrats) to attack and dismantle Sallie Mae.
4. Eliminating Sallie Mae (which currently gives decent interest rates) and forcing people to go to banks which might then raise their rates for students will give a lot of free money to the big banks that practically own our government.

The Democrats ran last year on a platform to defend the middle class, it was practically the theme of their national convention. "Trust us, we are the defenders of social security, the givers of Medicare and affordable education" yet the past week has seen the Democrats leading the attacks on both education and Social Security.

If there ever was an appropriate time for a third party that represents the interests of average Americans to appear, the time is now.

BEDA 2013 post number 10!