Republicans Need Ideas Other Than Tax Cuts
By Justin Gardner | Related entries in Barack, Democrats, Economy, Republicans, Taxes, VideoSupply side economics are what got us to where we are currently and they’re not going to get us out.
John Boehner on Meet The Press today…
We all know the basic argument: you give people back more of their money, they’ll spend it wisely. Well, during these unique times I think that argument isn’t addressing the economic reality that exists.
See, right now individual tax payers are either saving any additional money they get or paying down their debt. So if you give them back more of their money, it’s actually extremely unlikely that it’ll have much stimulative effect on the economy at all. That’s why Dems have been arguing against fewer tax cuts and more government spending. Because at least we know we’ll get people working and create jobs with government spending.
Also, and this is just a personal thing, but I think asking folks to go out and start spending again (and therefore getting into more debt) is irresponsible at best. We all need to clear our collective balance sheets right now and the best way to do that is to get people working.
What’s encouraging is that Americans seem to get this. At least recent polling shows that they’re fully on board with infrastructure spending and they’re going to be patient with the returns from those outlays. Perhaps they realize that Republicans have ignored it for far too long and they trust this new administration to spend the money wisely.
So yes, I find it troubling that during a time when bi-partisanship is needed, Republicans aren’t stepping up to the plate and trying to move forward. Even John McCain is saying he won’t support the stimulus bill as it currently stands. But what they’re ignoring is that Obama and his economic team did include more tax cuts in his plan than Congressional Dems wanted, and that’s even when economic models show that tax cuts will be far less stimulating than infrastructure spending.
Essentially, Republicans are acting as if they won the election, and I can’t help but think they’re going to get a rude awakening come 2010 if they don’t support this bill. They can’t just be the party of no, and they certainly can’t just be the party of tax cuts. It won’t work.
This entry was posted on Sunday, January 25th, 2009 and is filed under Barack, Democrats, Economy, Republicans, Taxes, Video. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
January 25th, 2009 at 2:44 pm
So how about giving people back more of someone else’s money, in the form of rebate checks to lower income people who didn’t pay taxes in the first place? Is that a better idea?
January 25th, 2009 at 5:23 pm
The Republican economic plans didn’t get us into this mess. The mess is a wholly bipartisan creation. To oversimplify a bit, it comes back to Democrats wanting more people to have access to mortgages and Republicans wanting to reduce regulatory overhead. Both of these are fine goals, but they don’t go together very well when the result is that more people who can’t afford loans are able to get them, and even when people recognize the problems, nobody’s in a position to do anything about it.
That being said, it would stand to reason that prudent policy dictates low taxes and infrastructure spending during a downturn, and relatively higher taxes and paying down debt during an expansion.
January 25th, 2009 at 5:44 pm
In a Republican strategy meeting in a possible future…
Sen. I:
Rep. B:
Sen. M:
All heads nod as one and in unison the voices say the same thing.
January 25th, 2009 at 9:32 pm
I love this post. It is a classic and a tip of the hat to JG.
It is going to pass with or without the Republicans. Obama wants 80 to politically cover the Dems when massive inflation hits and this stimulus package only prolongs and intensifies the correction. Who cares about the Republicans? who cares about bipartisanism — “I won,” he declares to the Republicans…well then, I guess too much bipartisan isn’t needed.
And his lame diversion and polarization via a referrence to Rush Limbaugh is pure Saul Alinksy. It may work in the projects of S. Chicago, but the Great Unifer is doing nothing buy galvanizing and polarizing.
Honestly Justin, I don’t think the Republicans are really worrying about 2010 — there is something kind of liberating about the current situation for conservatives and libertarians — the solemn, calm clarity of the gallows.
January 25th, 2009 at 10:22 pm
RDean,
Argh, argh, and more argh!
The Republican myth that the finanacial meltdown can be traced back to
“Democrats wanting more people to have access to mortgages” in general and the Community Reinvestment Act is particular is exactly that–a myth.
The intent and structure of the CRA was to ensure that QUALIFIED individuals in poorer markets were able to gain access to credit.
QUALIFIED
The CRA itself had nothing to do with over-inflated appraisals, home flipping, pushing otherwise qualified individuals into subprime adjustable rate mortgages, the invention of derivatives, or the shell game that financial institutions played with securitized packages of bad loans.
The whole myth began with a right wing idealogue (Thomas DiLorenzo) who has such a weak grasp of reality that he still thinks the south’s seccession from the union was a good idea (he is also one of the early proponants of the idea that FDR prolonged the great depression)–in other words, he’s one of the fringe right’s favorite idiots.
Much of the blame for the practices that really led to the mortage crisis and financial meltdown lie at the feet of the Republican push for constant deregulation.
The GOP still refuses to face up to the reality of their mistakes and are looking to scapegoat anyone who doesn’t have an R after their name.
January 26th, 2009 at 4:05 am
Care to address the real issue Jimmy, or just foam at the mouth about a tiny portion of the bill that has nothing to do with the post? As always you squeel about a strawman while ignoring reality. The question was infrastructure spending vs. tax cuts.
J. Harden, there is nothing even remotely conservative or libertarian about todays republicans. Nice try though.
January 26th, 2009 at 6:31 am
[...] I wrote yesterday about Republicans needing ideas other than tax cuts, and that was based on what John Boehner said during the broadcast. And, as reported elsewhere, they can’t continue to expect Americans to support tax cuts for the wealthy. It simply won’t work. [...]
January 26th, 2009 at 8:36 am
David, when Obama said, “I won,” he was specifically referring to the provision which gives rebate checks to people with zero income tax liability.
gerry, what about FNME and FDMC purchasing upwards of 90% of all subprime, high risk mortgages in the country and then selling them as securitized debt with fraudulent AAA ratings from the SEC? Those are all government agencies which Ron Paul adviser Peter Schiff argues created an artificial market for bad bank loans, leading to collapse when the bubble inflated by the Federal reserve (another government agency) burst.
When the governement says, “We have 1 trillion dollars to spend on Widgets!” well, a whole lot of people will start making them. When the government says, “If you buy our new widgets we just acquired, we will guarantee you 7 cents on the dollar in a year for every one you buy; we will even print the money or force our citizens to pay for it if necessary!” then a whole lot of people will start buying.
January 26th, 2009 at 9:40 am
Before I appear too strident in my support for Obama and the Dems, I want to make it clear that I don’t think the Democrats are above reproach. Indeed, while I blame the GOPs lockstep approach to deregulation and economic issues for most of the problems we’re now experiencing, the Dems have a lot to answer for.
Their acquiescence with the GOP in everything out of fear and lack of oversight deserves our scorn, but there were plenty of Democrat initiatives that had signficant contributions ot the mess we find ourselves.
The repeal of the Glass-Steagall Act can be put directly at the feet of Clinton, as can NAFTA’s passage. Chris Dodd did such a poor job running the Senate Banking Committee that I cannot fathom the standing he still has in the party.
Nancy Pelosi and other Democratic leaders who put politics ahead of policy when they began to see what was coming but allowed things to get worse so the Dems could win the White House should also be driven from office.