Democrats, Hear This
Cramer finds the Democrat's focus equally dismaying.
"They argue that people who pay their fair share of taxes aren't helped enough by government programs."
However if these programs leave our government unable to pay its bills, there will come a time when we have to do what Spain did and cut back all of our social programs radically.
"Without spending cuts now, in the future we will have to accept a lower standard of living for all."
That's the inevitable outcome. That's why spending cuts are so important.
Ironically, Jim Cramer also believes that if lawmakers would set aside politics and reach an agreement – any agreement –the resulting economic boom would far outweigh the burden of raised taxes or spending cuts.
"We have so many things going for us in this country that the two percent would be able to make major gains in their wealth, again, much more than they would pay, proportionately, in taxes," said Cramer.
"And the middle class would be more upwardly mobile and more able to pay higher tuition for college as well as saving for retirement, the two biggest challenges most people face."
"Their 401ks and IRAs would go up so much that it would make up for the end of the payroll tax break, and for the capital gains and dividend tax increases for what little money they can now save outside those tax favored vehicles."
But lawmakers don't seem to understand – and as a result the negotiations remain at an impasse.
And that doesn't help anybody.