In Deep Water: The American Fiscal Cliff

Greetings all!

This post marks a special moment for my blog; this is my 50^th post. I’m glad to see it has come so far since the beginning. This week, I expand upon the topic of the American fiscal cliff, which seems to be the only thing being spoken about in political spheres here these days. I will explain the situation at hand in the easiest terms I can manage, and offer my solution to our looming problem. This week’s quote comes from Friedrich Engels, a man who helped to write the Communist Manifesto and was very much a founder of organized communist ideology alongside Karl Marx.

Onto the topic at hand, the fiscal cliff is not something to be taken lightly. Unfortunately, the most people seem to understand is that Congress and the president are not acting fast enough to solve the issue. While this is true, it ignores the situation at hand. The “fiscal cliff,” in itself, is actually not too hard to sum up. It is a series of drastic spending cuts and tax increases that will take effect in the new year if Congress and the president do not act quickly enough. However, it is not quite so simple as to be explained in one sentence. For those that would like an easy way to look at this through a graphic form, I direct you to the Washington Post, which published a fairly good tool for finding information about the topic. For those that haven’t picked it up by now, the fiscal cliff is very serious for America. If we go over the cliff, we risk taking on the same pattern of suffering that austerity-laden European nations have fallen in to.

This is mostly because the fiscal cliff is, itself, an austerity package. By combining spending cuts and tax increases on everyone, we will be signing off on a renewed recession. Austerity has been proven as a harmful measure for European countries; we are sure to have troubles if we take on the same policies. First come the cuts; drastic in size, these cuts will very much reduce the burden of American domestic spending. However, the cost is impressive. The defense cuts alone are draconian; even I don’t know if our military could handle it. A large chunk of American jobs depend on the military, and likely won’t survive these cuts. I have long been a critic of American militarism and heightened spending on our defense. And while I would like to see cuts over time, this is too much too quickly. I am not defending our horrid foreign policies; I am defending our domestic employment. Cutting this amount of funding and jobs all at once will leave many people unemployed. It gets even worse when you realize that unemployment benefits are being cut as well, so these newly jobless military workers won’t have much to rely on. Pile that onto an economy sure to be shrinking and we’re looking at a significant amount of people who won’t have jobs for a long time. We should be cutting the military down over time; we need to encourage our government to tear away the military-industrial complex and get rid of our hostile, activist foreign policy. Yet this is not the way it should be done. We should not change this at a huge cost to ourselves.

And these defense cuts are not the only ones planned to take effect. There are sweeping cuts set to take place across most all government agencies, severely damaging public sector jobs where wages have already been stagnant for years. Significant damages will come in the form of cuts to public benefits, such as unemployment and Medicare/Medicaid. The American right has long pressed for cuts to entitlements, but even modern Republicans claim the fiscal cliff must be avoided. When we see this occurring, we should realize how bad things are likely to get. While we will not experience a major recession the likes of which some nations have faced, we will experience a sharp drop in GDP that our populace is not ready for.

However, the real stabs in the back from the fiscal cliff are the tax increases. Strictly speaking, taxes are not truly being raised in many forms by the cliff. Many tax cuts of the past will be expiring, thereby raising overall rates for all Americans in the process. First, the payroll tax cut will expire. This one will be quite the harsh punishment; the payroll tax cut affects all Americans earning a wage, and it isn’t by a small amount. I’d like to see this cut expire for the top wage earners and eventually all wage earners; it shouldn't have existed in the first place. However, letting it go for absolutely everyone at the same time ensures a detrimental effect on the amount common people are paying. Even the lowest wage earners will pay an extra $120 on their annual taxes; this seems like little, but to those under the poverty line it is sharp and unbearable. The expiration of cuts from the 2009 stimulus package will also overwhelmingly harm the lowest wage earners. The largest percentage of their new payments will come from these cuts, unsurprisingly. The expiration of tax cuts and limits on the estate tax will push holes deeper into most all Americans pockets, especially the top wage earners. And then come the expiration of tax extenders and the alternative minimum tax patch, both of which will sting businesses significantly. The last taxes come from the new healthcare laws, of which are not much concern except to the highest wage earners. Combined, these expirations of cuts will have a drastic and destabilizing effect on all Americans. This will be especially bad for those lower and middle class workers that lose their jobs, as a recession economy with few unemployment benefits is not the best place to look for work.

And now, we come to answer the question: what to do? There are a few options at our disposal. The first would be to just go over the cliff, and deal with the economic crap fest we are sure to endure. It would certainly be damaging to our economy; we would be plunged into uncertainty, our joblessness would jump high, and it would mean another recovery would be necessary once more. However, in the end, the deficit would be reduced by huge amounts, solving our so-called debt problems fairly efficiently. Let me state this now: we cannot allow this to happen. A government is not meant to run like a business; debts and deficits should be expected at some points, as they are necessary to keep the country running on business as usual. Without public spending, our country does not have much to go on, and we are already part of a culture where cutting jobs for a quick buck is common. If we allow ourselves on this path, we only contribute to the inequality America has become well known for. Let’s not make ourselves even less equal if we’re given the chance.

The second option would be a grand compromise. It’s a big stretch, but if Congress and the president can work out a large deal which covers how we are to cut spending and raise taxes evenly, we can avoid the cliff. While this would be great, I urge you not to get your hopes up. Our legislative branch has proven to be quite dysfunctional these past years; don’t think that will change because of a crisis. Oh, I’m certain that some work is being done. But I seriously doubt we’ll have something perfect by the time the bell tolls on our economy.

The final option would be some form of imperfect compromise, where either the left or the right gets a larger share of what it wants in order to stave off fiscal disaster. If the right gets what it wants, much of our deficit reduction will come from spending cuts that very much target low and middle income Americans at the expense of America’s wealthiest citizens. If the left gets what it wants, the richest Americans will be taxed somewhat more strongly in order to pay down the deficit. However, either way this happens the side that loses out will still get some of what it desires. The right will get some cuts to domestic spending no matter what; the Democratic Party has shown to be far too willing to negotiate on this for us to expect otherwise. The left will get some tax raises on the wealthy no matter what as well; the Republican Party may be stubborn, but in the end they can’t risk a new recession just for some bogus principles.

My hope is that the majority of our deficit reduction comes in the form of tax increases on the wealthy, while cuts are left as small by comparison. My reasoning why is quite obvious; I’m a communist for a reason. The wealthy have more money to give without suffering. This is fact. Therefore, we must ask that they give more to stabilize our economy. They may gripe about losing money they could invest, but the reality is that those taxes are used for public investments. And when taxes are raised, higher wage-earners are incentivized to hire more workers and increase business in order to make up for the tax shortfall on income. I would hope that anyone can see my logic behind this.

That is all for this week, and as always I encourage constructive comments right here on the site. I am also available for contact at my email (zerospintop@live.com), as well as my Facebook, Twitter, DeviantArt, and Steam accounts. I’d like to one last time remind everyone that, the next time I post something here, the URL will have been changed and the blog name will also be changed. This is just a warning to readers; if you’d like to find this site in the future, it will be found by searching for my new name, KnoFear. I’d like to also introduce a co-author on the site, popov89. He is a good friend of mine, and likely will contribute his own work to this site in due time. Good night, and this is KnoFear, signing off. 

The Time to End: Israel and Palestine In A World Of Change

Greetings all!

This post comes after a short hiatus on my part in order to re-charge and plan out changes for this site in the near future. I also took a break to attend to my schoolwork; it’s a necessary thing sometimes, as my education is important. This post concerns the conflict just experienced (and still ongoing) between Israel and Palestine this year. While the violent attacks between the Gaza Strip and Israel have mostly ceased by now, problems are ongoing. With the recognition of Palestine as a non-member state by the United Nations and new settlement plans by Israel in retaliation, the situation has heated up from the relative peace experienced beforehand. My opinions on most of the issues concerning the region have not changed drastically since I last wrote about this, although some points have. And in the end, I’m writing this to make known what must be done to solve these conflicts, and to prevent the atrocious violence we continue to see. This week’s quote comes from Mahmoud Abbas, the leader of Fatah, the group which controls the West Bank. I support him and Fatah, and found it fitting I include something from him today.

Normally, I would not post if nothing about the situation or my opinions had changed. This is true of what I am writing right now; while my distaste for Hamas remains, I have switched sides on a major point of contention. After much thought, research, and reflection, I now support immediate Palestinian independence. My reasoning for this is due in part to the recent conflict the region experienced. For every rocket shot at Israel, hundreds more fired at the Gaza strip. Very few Israelis died, yet over one hundred Gazans perished, mostly non-combatants. I realize that every death counts, and that every Israeli had friends and family who will weep over their losses. Yet hundreds more will grieve in the Gaza Strip. I realize now how terrible things have become, and how wrong this all was in the first place.

I split my support for Palestine into two portions accordingly; the West Bank and the Gaza Strip. Prior to the conflict, I already supported the West Bank. The Israeli occupation of the West Bank was no better than the Syrian occupation of Lebanon; the Palestinians were trapped away from their home, controlled by a government incredibly hostile to themselves. While Israel no longer exerts direct military control over the West Bank, life has not improved at the pace it should have. The West Bank remains under a tight economic leash from Israel and the United States. Infrastructure and education are in poor condition, and poverty is a nearly endemic problem. At the very least, the West Bank has remained under good leadership. Fatah and Mahmoud Abbas remain paragons of secular strength in the West Bank; their leadership has remained confident that negotiation can lead to a two-state solution. These commitments to secularism, democracy, and peace have fostered my support for the Palestinian Authority and Fatah. In a small piece of land constantly threatened by Israeli settlers, Fatah remains a voice of reason. Impressive, for a place where reason is often cast aside.

I have found the Gaza Strip harder to support ever since Hamas took power in the 2006 elections. To me, Hamas had always represented an antagonistic group which ran perpendicular to Fatah. Hamas is a conservative Islamist group, and supports much of the missile strikes on Israel. Just like Israel and the U.S., I always viewed and still do view Hamas as a terrorist group. They do not have any commitment to peace and few ties to democracy, despite what they may say. Hamas has killed and made its own people suffer in order to appear strong and fiercely independent. I have always viewed their priorities as being out of order, and their policies very much wrong. The Islamism of Hamas restricts Gazans significantly, limiting the secular freedoms that Fatah and all governments should provide. Hamas has also driven the economy of the Gaza Strip further into the ground with their confrontational attitude.

However, the position of the Gaza Strip is a desperate one indeed. They are blockaded by Israel and suffer the economic woes of sanctions. Their infrastructure and education are often worse than that of the West Bank. They are plagued by violent Islamism spilling over from the Sinai Peninsula. True, the Israeli military unilaterally disengaged from the Gaza Strip in 2005. But again, the fear of occupation and settlers remains. The fear of strikes by Israel remains. Israel has taken their land before; it is not beyond Israel to do it again. Especially with an ultra-conservative government in power like right now, under Binyamin Netanyahu and the Likud Party. As long as both of these sides retain hostile policies towards each other, the Gaza Strip will suffer more significantly. I might not support Hamas, but I do support Gazans. I cannot tolerate the violence, the death, the hatred that builds between these peoples any longer. I cannot support such blatant, solvable inequality between peoples that both claim a “holy land.” It is not worth it to see such horrors occur.

My final point is as follows: Palestine deserves independence. Not eventually; it must happen as soon as we can make it happen. It must happen now. Israel must agree to stop all settlements and take Israelis off of Palestinian land. In return, Palestinians must stop firing rockets at and sending suicide bombers into Israel. This is not difficult, and these conditions are not unreasonable. If Israel can afford to build Palestinian settlements, it can afford to build homes in Israel for those uprooted by the removal of settlements. The only thing really stopping Palestinians from ending the use of weaponry is Hamas and other militant extremist tendencies. When elections come, replace Hamas with Fatah and the clear-headed leadership of the Palestinian Authority. Hamas has proven to be one of the worst things for the Gaza Strip yet. I can see no reason they shouldn't be kicked out of office. With two states in place, there will no longer be a need to fight. It can all end now. It is up to Israel and Palestine. We must make this right.

That is all for this week, and I am still available for contact through the comments. I can also be reached through my email at zerospintop@live.com, my Facebook, Twitter, DeviantArt, Steam, and Tumblr. However, from now on I will not be using my Google+ for contact. My Gmail usage has become split between three accounts, and is now too hectic for these kinds of things. Two announcements before I go; this site’s URL and name will still be switched at the beginning of 2013. Remember, I will be using the name KnoFear from now on. Also, I am now searching for a co-author here. I will only be accepting a co-author through DeviantArt, and I will be asking my friends first, so don’t expect a position unless all else falls through. The new author will likely be helping with moderating the blog and may even be posting his/her own work. However, there will be more on that later.

For now, this is KnoFear, signing off.