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I'm all for cuts to the bloated defense budget. But that means we either need more government spending in other programs/areas or tax cuts. There's a higher spending multiplier associated with government [expenditure] spending than with tax cuts, as government spending is all spent by definition, so if you do tax cuts, you probably need to do them near $2 for every $1 cut from the spending budget. FICA payroll tax might do the trick, but given you're offsetting cuts, we would still have an output gap to fill in.
Plenty of things we need done in the public sector, recession or not. The purpose of the people's purse is public purpose!
So, I favor FICA cuts and the same level of government spending, just redirected towards public purpose, with cuts and increases of particular programs as appropriate. I'd also like to add to SSI and Medicare benefits, not cut them.
Long-term, still need a Job Guarantee. Too many have been out of work too long, and we need a transition program to get people back into employable shape, otherwise we could still end up with a labor shortage, even with millions still unemployed.
Unfortunately, Obama seems more concerned with and disabled by the politics than with transcending the politics, per his own presidential vision.
All attempts at reasoning with the WH have failed. FICA payroll tax cut would offer him a chance to break out of the box and outflank Republicans on tax cuts. A full FICA payroll tax suspension would be the largest tax cut in history, and from the bottom-up!
At this point, Republicans against deficit spending are against the broad point of capitalism, which is sales, output, and employment.
I've taken the FICA payroll tax cut idea to both Tea Party and Occupy groups and have had a warm reception.
As I see it, MMTers are to the right of the Republicans on tax cuts, and to the left of the Democrats on government spending.