A dark and painful day at a space agency that brings so much light and joy to the world.
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I actually think the deficit is out of the question too, maybe not in the next few years (although they're going to increase the deficit so this discussion is moot) but the increases in SS/etc. go up fast.don't think that reducing the debt is really in discussion. I'm just talking about reducing the deficit, not the debt.
Yes you're right, in 2024 it's over the defense spending, I had grabbed 2023.You might want to recheck that statement.
All discretionary spending adds up to less than the current deficit. Without tax increases it's basically impossible to balance the books.I don't think that reducing the debt is really in discussion. I'm just talking about reducing the deficit, not the debt.
You might want to recheck that statement.
How much experience do you have working with NASA? I was a JSC contractor for 30 years.I object to the statement that there is bloat in NASA.
It does, to the extent prescribed in law. Takings are governed in part by the Fifth Amendment "just compensation," defined as fair market value, but also by the ruling in Youngstown Sheet & Tube Co. v Sawyer. Essentially, the Court ruled that the President alone can't seize private property, but implied that they absolutely can when acting in concert with Congressional authorization, and that fair-market valuation may dramatically be impacted. Musk values it at $350 billion. That doesn't mean it is.The US government has to pay for stuff it takes. Congress and the President can't change that.
Nothing necessarily against him trying to poach employees (though that too can be governed by some national security statues depending on how SpaceX is nationalized), but plenty against him taking trade secrets, and more importantly getting license to build infrastructure and fly.And there are no laws that could stop Musk from starting a new company and hiring most of his employees back.
Ahh yes, more of the standard "WE MUST BALANCE THE BUDGET" but cannot do anything to balance it. This is learned helplessness, or just parroting the republikkkan propaganda. They never cared about the budget (considering how they make it worse every time). You parrot the standard false dichotomies and bs talking points of the gop - which are all excuses to dismantle the government so that the rich are not taxed or regulated. Everything else is a smoke screen. Effective government is GOOD for the people, but bad for billionaire and nazis.It's politically impossible to raise taxes to the point of balancing the books. Americans have never paid that level of taxes, and aren't about to vote for someone who will make them do so.
Fortunately, we can live with a deficit. It just needs to be a bit smaller than the last 5 years.
A massive gulf? The size of America or the size of Mexico?This is a joke, right? Are you not paying attention, Mr. Berger? There is and has been absolutely nothing legal about any of Trump's cuts to date, yet he does them and the Republicans in Congress stand idly by. Exactly what negotiation do you think is going to take place? There is currently a massive gulf between how things are supposed to work, and what Republicans are actually doing.
Emphasis mine. That word does not mean what you imagine.I understand that you, and the Ars commentariat are unhappy, but Trump is doing exactly what the majority of voters asked him to do.
I saidAhh yes, more of the standard "WE MUST BALANCE THE BUDGET"
Try reading harder. That's not saying we must balance the budget. In fact, it's the exact opposite.Fortunately, we can live with a deficit.
Americans re-elected both Obama and Clinton, who each had taxes at levels that allowed for budgetary stability. The one time a president didn't get re-elected, he had slashed taxes.It's politically impossible to raise taxes to the point of balancing the books. Americans have never paid that level of taxes, and aren't about to vote for someone who will make them do so.
Fortunately, we can live with a deficit. It just needs to be a bit smaller than the last 5 years.
While he has great sources and lots of info, berger has always been a water carrier. Its just becoming more obvious lately.This article seems unusually biased and complying in advance.
Oh look, you wanna play word games. Thats too bad, I won't play games parsing words designed to distract and disguise your point. We all know what you said.I said
Try reading harder. That's not saying we must balance the budget. In fact, it's the exact opposite.
Well, for the first time in in my 40 year career, there are now IT workers unionizing. This is something that was completely unheard of even 5 years ago.Sharing a letter from within these circles for insight:
“As I am sure most of you have heard by now, this week brought an unforeseen air raid upon many of our engineering comrades with sirens sure to go off on others in the coming weeks and months. The assault was indiscriminate, claiming numerous high performing, exceptionally talented individuals. The rationale given was in line with the fashionable corporate word salad that seems to have set in across industry that accompanies the change in tone across our country. Since the raid, I have spent many hours talking with colleagues who were well and truly shell shocked by what happened. Many of these folks were reaching out to express their frustrations with recent events across our industry. I would like to share what I have heard, and hopefully use these events as a spark to ignite some, maybe only one of you, to consider the value of organized labor.
We are often told and exist in a structured environment that would lead us to believe that if you work hard and do good work, you will be rewarded. That is a lie, which much like a broken clock happens to be right some of the time. You, as a working class laborer are a means of value extraction. The contract you have signed is toothless. Don’t believe me? Please, allow me to put you in touch with individuals who have had the terms of their contracts revoked without an opportunity to renegotiate. If you think that it’s fine for a company to unilaterally levy new contractual terms on labor without negotiating then it’s likely that either 1) your salary depends on believing that is righteous or 2) you are deeply institutionalized and there is a long winding road ahead for you on this topic.
Why do I bring this up? The single most common thing I heard from my conversations was the shattered belief in meritocracy. Over 50% of those I spoke with had never seen high performing engineers kicked to the curb without notice. The minimum years of experience of those I spoke to was 8 with the most being 25. Most had been through RIF’s, but had not experienced this form of savagery. As I used to hold true, these folks were of the conviction that a highly productive, intelligent, and pleasant to work with person would be held onto - when layoffs occur it’s really just "trimming the fat”, as we are told. Wrong. It is more likely that the man who plays golf with and laughs at the senior directors jokes will be retained than the working level engineer who saves the company an incalculable amount of money through their labor. Our labor and contributions can be very hard for senior leaders to understand or quantify - laughs and time on the links? Priceless!
This brings me to the second and perhaps most disappointing observation I encountered during my conversations - indifference and/or aversion to the idea of organized labor. It is a real feat of the human condition to be treading water in the middle of the ocean, watching your peers go under and still refuse a life jacket. However, that is what we are faced with as working class labor. Instead of cooperating and looking out for one another we cling to the idea that if we are just fast enough we can outrun the other sucker and the corporate bear will eat them instead. This plays extremely well into the hands of business interests. We, as fools, undermine our own collective interests and willingly fuck each other over on their behalf! I can only imagine that for businesses it feels like running the hunger games and having an overflow of applicants on a volunteer basis.
Unions are not perfect. There will be corruption. In case you haven’t come to terms with it yet, it is a fact that humans are not perfect. However, that doesn’t mean we can’t do better. Our standard of work life in America is only where it is because it stands on the shoulders of those who fought for our rights in the past. While some folks would like to return to having children toil in the meat processing plants because they fit nicely in the sausage machines to clean them - most of us with a soul have agreed to protect children from this. That type of thing stems from organizing and looking out for one another.
Things are likely to get worse for us working class engineers going forward. The current climate is not favorable to labor. I realize that many of you will not change your mind on this topic and that is fine - just don’t expect a life vest. If we continue to fuck around we, as labor, will find out.”
These cuts are are seriously fucked up, but unions are not the answer. Both are the opposite of meritocratic. These cuts are getting rid of people regardless of merit, and unions fight to keep everyone regardless of merit. There are sensible ways of "trimming the fat" if/when it needs to be done, and most companies are far more meritocratic about it than this, because of course it's better to get rid of lower performers (I know there are exceptions when large numbers are let go, like entire departments, or forced RTO to encourage resignations, etc.).
Unions typically try to prevent downsizing at all, and when it happens, insist that it be based on seniority or some other non-merit based measure. Higher performing engineers, especially early in their career when they have less seniority, are right to be wary of unions. Perhaps by "working class engineers" you are referring to lower skilled ones that have more to worry about when cuts are made? And of course public sector unions are not in the best interest of taxpayers, nor are private sector unions in the interest of companies or their customers.
You appear to be in the group with the long winding road ahead. I’ve talked with enough folks with arguments similar to those you posed to know that I will not sway you in a comments section of a website.These cuts are are seriously fucked up, but unions are not the answer. Both are the opposite of meritocratic. These cuts are getting rid of people regardless of merit, and unions fight to keep everyone regardless of merit. There are sensible ways of "trimming the fat" if/when it needs to be done, and most companies are far more meritocratic about it than this, because of course it's better to get rid of lower performers (I know there are exceptions when large numbers are let go, like entire departments, or forced RTO to encourage resignations, etc.).
Unions typically try to prevent downsizing at all, and when it happens, insist that it be based on seniority or some other non-merit based measure. Higher performing engineers, especially early in their career when they have less seniority, are right to be wary of unions. Perhaps by "working class engineers" you are referring to lower skilled ones that have more to worry about when cuts are made? And of course public sector unions are not in the best interest of taxpayers, nor are private sector unions in the interest of companies or their customers.
It's politically impossible to raise taxes to the point of balancing the books. Americans have never paid that level of taxes, and aren't about to vote for someone who will make them do so.
Fortunately, we can live with a deficit. It just needs to be a bit smaller than the last 5 years.
Does this mean that EPOC¹ is already dead? I thought its finalization had merely been pushed back to NET 2026.Here's one exercise to answer that question. A couple of years ago Boeing and Northrop attempted to 'privatize' parts of the SLS rocket program in order to lower recurring costs and make the rocket slightly more competitive on price. This was known as Deep Space Transport LLC. The plan was ultimately shut down by Marshal because of potential job losses for NASA employees. In other words, the bureaucracy was acting to protect itself.
Hard to do that while plummeting from the back a C-130 over the Atlantic.And there are no laws that could stop Musk from starting a new company and hiring most of his employees back.
I find that statement implausible, but like many others, this is a assertion that can be verified with arithmetic. I'm sure someone has done that. A quick google search didn't turn up a concrete answer but this publication looks topical: Options for reducing the Deficit.It's politically impossible to raise taxes to the point of balancing the books. Americans have never paid that level of taxes, and aren't about to vote for someone who will make them do so.
If the law changes, even those entitlements can be cut. Even without changing the law, they effectively cut the value of those entitlements by printing more money (inflation) and making the existing payments have less purchasing power.Other than the 5 things we by law can't cut, as they're entitlements? It's entirely reasonable to exclude them.
Obama had $1T+ deficits his first 4 years and much lower federal receipts (which is mostly taxes, and was 14-15% of GDP) than today. The deficit dropped and receipts rose his last 4 years... and lead right to an R trifecta in 2016.Americans re-elected both Obama and Clinton, who each had taxes at levels that allowed for budgetary stability. The one time a president didn't get re-elected, he had slashed taxes.
49.8% after all was counted is pretty darn close to a majority, it's clearly larger than the runner-up for once, and Trump did, in fact, promise to destroy the US government (as GOP candidates have been promising to do since Reagan).Emphasis mine. That word does not mean what you imagine.
The federal government currently spends 23% of GDP but only has ever had receipts at a maximum of 20% of GDP. Taxing enough to raise federal revenues to 23% of GDP would be breaking new ground for the US.I find that statement implausible, but like many others, this is a assertion that can be verified with arithmetic. I'm sure someone has done that. A quick google search didn't turn up a concrete answer but this publication looks topical: Options for reducing the Deficit.
If any ars reader knows what tax rates we would need in order balance the budget given our aging population and current debt service obligations I'd be interested in seeing the figures. I mean, it happened in 1998 and I don't remember tax rates being extreme at that time.
I've thought for a while that we ought to get rid of corporate income taxes entirely and treat all US corporations as if they were S corporations: Each stockholder's share of the annual profits is treated as ordinary income. If they sell their shares, they get a step-up in basis by the amount of the profits they've received while owning the shares.Of course, that's just looking at personal income taxes. For corporate taxes, we're down at 21% currently, the lowest it has been since 1939. We probably don't need to go back to the 52.8% corporate tax rate of the late 1960s, but from 1951 to 1986 the top corporate tax rate was never less than 46%, and that top rate cut in at fairly modest amounts ($100,000 in 1983, equivalent to about $325,000 today).
Top marginal rate doesn't directly equate to money in the door. What you're looking for is federal receipts as percentage of GDP. That's the actual value that the USG is extracting from the economy.The current top marginal tax rate is 37.00%. Since 1913, the years with a lower top marginal tax rate:
1913-1916
1925-1931
1988-1992
2003-2012
Even Saint Ronnie Raygun had a 50% top marginal rate until the very end of his administration. From 1936 to 1980 it was never below 70%.
Of course, that's just looking at personal income taxes. For corporate taxes, we're down at 21% currently, the lowest it has been since 1939. We probably don't need to go back to the 52.8% corporate tax rate of the late 1960s, but from 1951 to 1986 the top corporate tax rate was never less than 46%, and that top rate cut in at fairly modest amounts ($100,000 in 1983, equivalent to about $325,000 today).
The list wasOther than the 5 things we by law can't cut, as they're entitlements? It's entirely reasonable to exclude them.
Only 3 of those are mandatory spending.social security, medicare, medicaid, veteran's benefits like the VA, and defense.
The essential and high value grandmas can then be identified and plugged back in. /sI can't wait until you explain to us that grandma deserves to be unplugged from the ventilator.
The federal government currently spends 23% of GDP but only has ever had receipts at a maximum of 20% of GDP. Taxing enough to raise federal revenues to 23% of GDP would be breaking new ground for the US.
You could try to make the case that anyone raising taxes higher than they have ever been would actually do fine politically. I'm rather skeptical of that assertion.
What do we need NASA for, period? At some point the question has to be really asked, not just shrugged off as irrelevant because it's outside an Overton window.
The average since 2008 is 22.53%, so I think 23% might be close to the new normal. Of course the 2012-2019 average was 20.45%, which is quite a bit lower... but I think you have to take the good years with the bad. It's definitely possible to get back to 20%, but it won't be easy. Nor will it be easy to avoid more big deficits the next time an emergency comes along.23% is also anomalously high from a historical perspective. After the 2008 recession, it hovered around 20% from 2013-2019 before getting spiked to 30% in 2020 and then slowly declining again. Before the 2008 recession, it was between roughly 17.5% and 20% through the 1990s and 2000s. Post-1945, the years with spending of 23% or above:
2009
2010*
2011
2020
2021
2022
2024
Maybe it's a new normal, particularly with the party of spend-and-spend in office, but it's entirely plausible that those numbers could come back down.
*Sort of. 2010 was 22.97%, and it didn't feel right to leave off a number that close to 23% on a technicality.
Bill Clinton balanced the budget. It wasn't that long ago. Surely you remember it?It's politically impossible to raise taxes to the point of balancing the books. Americans have never paid that level of taxes, and aren't about to vote for someone who will make them do so.
Fortunately, we can live with a deficit. It just needs to be a bit smaller than the last 5 years.
Useful info, thanks.The federal government currently spends 23% of GDP but only has ever had receipts at a maximum of 20% of GDP. Taxing enough to raise federal revenues to 23% of GDP would be breaking new ground for the US.
Oh I'm not considering politics, mostly just curious about what's technically possible. We all know that politicians promise the world and claim it will cost nothing.You could try to make the case that anyone raising taxes higher than they have ever been would actually do fine politically. I'm rather skeptical of that assertion.
China and Russia can't believe their luck.
Also, for those wondering why you need NASA, they kept SpaceX alive for long enough to deliver something good. Of course fElon Muskow will target anything that could provide competition in the future. Anything NASA/space would compete with SpaceX, anything EV/charging networks would compete with Tesla.
Oligarchy is a cruel mistress and USians learn now that the US is not in fact immune to the same problems every other (including has been) superpower seems to face.It's not luck.
The only way either of them could do more damage to the USA would be:Xi and Putin couldn't do this much damage to the US if they wanted to.
Would you like to play a game?
"Never argue with a man whose job depends on not being convinced."It's all about ensuring that money gets funnelled to Musk and his cronies. It's a raid on the government, and it's nothing to do with efficiency. It's a fucking coup. Call it what it is.