What would be the effect if the tax increases and spending cuts occurred all at once?

A:

It’s unlikely that we’ll go over the “fiscal cliff” without any changes in the mandated tax increases and spending cuts. But if we did, there would be a drop in the budget deficit by $500 billion in 2013 and a corresponding damage to the economy due to this large drop in effective demand. A great deal depends on which programs sustain cuts, how soon these cuts take place and whether or not higher tax rates are imposed on the rich and corporations, but not the working class. Though critical anti-poverty programs are slated for massive cuts if there is no solution, the executive branch could delay the effects of the cuts and tax increases on working people until March 1 or so. Thus, the Obama administration should bargain tough and not rush into a bad bargain. The administration has leverage, as the Right doesn’t want to take blame for tax increases on the middle class and they desperately want to preserve defense spending. 

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DSA Queer Socialists Conference Call

August 21, 2017
· 22 rsvps

Join DSA's Queer Socialists Working Group to discuss possible activities for the group and its proposed structure. 9 pm ET/8 pm CT/7 pm MT/6 pm PT.

 

Film Discussion: Pride

September 10, 2017
· 41 rsvps

Join DSA members Eric Brasure and Brendan Hamill to discuss the British film Pride (2014). It’s 1984, British coal miners are on strike, and a group of gays and lesbians in London bring the queer community together to support the miners in their fight. Based on the true story of Lesbians and Gays Support the Miners. The film is available for rent on YouTube, Amazon, and iTunes. 8 ET/7 CT/6 MT/5 PT.

Film Discussion: Union Maids

September 24, 2017
· 23 rsvps

 

Join DSA member and labor historian Susan Hirsch in discussing Union Maids (1976). Nominated for an Academy Award, this documentary follows three Chicago labor organizers (Kate Hyndman, Stella Nowicki, and Sylvia Woods) active beginning in the 1930s. The filmmakers were members of the New American Movement (a precursor of DSA), and the late Vicki Starr (aka Stella Nowicki) was a longtime member of Chicago DSA and the Chicago Women's Liberation Union. It’s available free on YouTube, though sound quality is poor. 8ET/7CT/6MT/5PT.