“It’s not that Democrats and Republicans can’t work together. It’s because they are working together.”

Last month the House and Senate, the dems and repubs got together and passed the tax cut extension. I personally argued the repubs had waited so long and been so ineffective compared to the president’s demagogic incitements that they needed to pass the bill, go back into session INSTANTLY and DO SOMETHING EFFECTIVE. Since then the president has initiated a scorched earth policy to goad the repubs into acting uncooperative, thus once again robbing the republicans in congress of leadership on WHAT IS IMPORTANT at a critical moment in American history. Boehner and McConnell got the jobs, but cannot do the jobs. Time to move over.

Here is what was in that bill….from RealClearMarkets

The Payroll Tax Cut

So many people have been erased from the income tax rolls that cutting income tax rates does nothing for them. This leaves payroll taxes as the only populist tool for politicians.

But, a 2% cut in Social Security tax rates does not boost economic output because it is not a cut in the top marginal tax rates. This means the government must make up any revenue loss by cutting spending (which it never does), borrowing more or raising taxes on someone else. But, taking money from one group to give to another is a zero sum game, at best.

In the year since the 2% tax cut was initiated in January 2011, and with the Fed super easy, consumption increased at an annual rate of 4.3% - unchanged from the 4.2% growth rate for all of 2010, the year prior to the cut. The tax cut did nothing. Only marginal tax rate cuts will increase growth.

Unemployment Benefits Extension

This is the one that always trips up politicians because no one wants to be on record against it. Yet, it is clear that two-year unemployment benefits have done little to create jobs. This is a European-style, Keynesian pump-primer. It has never worked in Europe, and it won’t work in the U.S. The reason unemployment is so high these days is because government is so big. The U.S. needs to cut spending, not increase it.

Increased Fees on Fannie Mae and Freddie Mac

Every bill Congress passes is supposed to be “paid for” by offsetting cuts in spending, or tax hikes. This explains the two month extensions. It’s cheaper to fund than a full year.

But even two month cuts need to be paid for, so Congress levied more fees on Fannie Mae and Freddie Mac. So what do fees on mortgage providers have to do with social security tax cuts? The answer is: nothing.

Social Security tax cuts should be paid for by cutting future social security benefits. If Congress was honest about this, Americans would probably not support a tax cut today for lower benefits tomorrow. It would be called eating our seed-corn. Unfortunately, we already ate it (we spend every dime Social Security brings in). So this tax cut just makes our already underfunded plan even more underfunded. Congress avoids this by putting more fees on home ownership.

{RANT ON}

Occupy took the right initial conclusion ..THE SAME CONCLUSION THE TEA PARTY REACHED, and went in the direction of accelerating the control of those people in THE POLITICAL CLASS inciting against business, as if they have the interest of the people at heart by writing checks to them with nothing in the bank but software which automagically keeps the balance !=0.

Of course the businesses they hate are the businesses UNDERPINNING THE SAME POLITICAL CLASS. Those deemed TOO BIG TO FAIL who now exist in the same netherworld as BASF-KRUPP-BAYER and their cooperative govt, and the academic institutions which produce the self serving and self justifying, AMORAL, circle, such as the Columbia University, where they never have heard of conflict of interest (the same place they are giving credit for #occupy).

CORPORATIONS SUCH AS, but not limited to GE, Bank of America, Morgan Stanley, Citigroup, Fannie/Freddie Mae, GM, Goldman Sachs, - any such business IS NO LONGER PRIVATE ENTERPRISE.

#occupy fails to recognize that the govt, those kinds of faux-enterprises, and the academic elite which lies beneath are all 3 in the same business, instead taking the position of a raw deal means send me a check, I don’t care.

So that’s why having the dems and republicans working together is no GOAL which can fix a dam thing in and of itself.

Those businesses will never create the jobs and growth which can take place only with RISK. They exists in a milieu which is designed to ELIMINATE risk because of the consequences of possible failure. Failure is made impossible by govt FIAT. This is a system in which growth risk is killed for the elimination of failure risk.

That’s the USSR’s underlying reasoning. Central controls, central fixes, eliminate the pains of the the bottom by eliminating the ‘greeds’ of the top …except there is ALWAYS A TOP…the govt, and key advisories, ministries, and universities which justify the govt, and key advisories, and ministries.

Only by changing the people in the american govt to those who wish to ELIMINATE their own jobs in favor of taking the higher earnings of what will be a more vibrant business world can ANYTHING be done which can change the USA.

Except, of course, open revolution.