Here’s my bit of pro bono work for the Democratic party: Ladies and Gentlemen (and all the rest of you): Spending money–even other people’s money–is not necessarily the same as undertaking a stimulus of the economy.
I am sorry you weren’t in class when this was explained. But think about it. Sometimes–often, in fact–spending is just that: an expense. You had X, now you have X minus whatever you spent. (Shakespeare touched on some of the more recherché aspects of this in his ditty about “The expense of spirit in a waste of shame”–”Savage, extreme, rude, cruel, not to trust; Enjoy’d no sooner but despised straight,” etc.)
A stimulus, on the contrary, is an expense that yields economic activity: investment, growth, jobs, confidence, i.e., the happy side of spending money.
Do you want to stimulate the economy, I mean right now, today?
1.) Cut payroll taxes by 10 percent.
2.) Eliminate the capital gains tax (not that there are a lot of capital gains to be had, but it will make people feel better, a necessary condition of the stimulation the stimulus is supposed to provide).
3.) Cut corporate taxes by 10 percent.
4.) Cut the marginal rate on personal income taxes by 10 percent.
5.) Finally, since no Democratic Congress can make it to the toilet without wanting to raise taxes, I also suggest imposing some tax on the more 43 percent who file but do not currently pay any income tax. It needn’t be much. But like the Metropolitan Museum here in New York, we should insist that partners in the social contract that is America pay something, just to give them a stake in the enterprise.
If the President of the United States could convince his colleagues in Congress to do this, he would unleash the mighty power of American capitalism. He would show that he was a political leader, not a grubby spoilsport who threatens to foul the play pen and go home (“Catastrophe!”) if you don’t give him what he wants. “If.” Little word. Big gap.
Dems were saying the Repubs ought to go along — for fellowship. Trouble is, the Dems always knew they could pass H.R. 1, but they needed the Three Stooges to give them bi-partisanship cover for when it fails. Who will even be able to name Phil and the two biddies from Maine next year when the economy craters and the Dems and media say that BOTH parties voted to pass the bill.
Roger,
“Just to give them a stake in the enterprise.” Brilliantly said what I’ve been thinking for years.
But if he gets that 43 percent to 51, he might be willing to let the economy take a hit.
I might be wrong about this – but I beleive that a substantial part of these incomprehensible sums is not even going to be borrowed money, but PRINTED money. This has been tried before, notably in Zimbabwe and Germany.
charllie rangel, the man in charge of writing taxes.tom dashle ,former dem majority leader.tim gaitner,the man in charge of enforcement of taxes.cris dodge, senator in charge of banking committe lets give them another trillion.dont forget mrs obama she received 317000 dollars as chief of outreach office for a hospital.put them to reform health care
Great leaders have always risen to the occasion.
Whatever the challenge, they all stand facing what needs to be faced in a Howard Rorkian manner.
Unfortunately, Obama will not, or ever will rise to the occasion. He has never led anything and it is easy to see by his character he never will.
Even the true Messiah, Jesus of Nazareth, would not tolerate the sycophants and the false worship of himself. He went about his business and did what he had to do. Obama on the other hand, believes the deceptive adulation and delusional messiah hype about himself. He has been trapped like a heroin addict drowning in his extreme hubris.
Obama is the worst of all “second-handers”. He is only capable of “fouling the playpen”.