Posted on 01/07/2009 2:47:13 PM PST by 2ndDivisionVet
“Better we go through the recession and come out in stronger fiscal shape and lower tax rates.”
Unavoidable. But, just think how that idea would sell, then you can quickly forget it. Now we’re engaged in this asinine bidding war, in effect, which is going to apply some implied level of “courage” to those who can spout higher and higher numbers. We started with $700 billion on HenryMania. Wasn’t enough, had to bump it to $850 bil. It’s literally just like an ebay auction, except with billions of dollars. It will accomplish nothing other than to transfer money from one set of hands to another. It’ll be the audacity of having a bigger number come out of someone’s mouth. Wow.
What would a government default look like? I can't even imagine.
“What’s going to happen the day the Chinese and Arabs say “NO!” to lending us yet another trillion dollars to piss away?”
For now, they or the Fed Reserve are enjoying the interest. But nobody can spend THAT much money...So I reckon they will own us. Darned, I hate rice.
it’s not a matter of ‘selling’ the inevitable recession.
I think we need to stand up and simply tell the truth:
THE STIMULUS SPENDING WON’T DO ANY GOOD. It’s the nation’s biggest, most corrupt boondoggle ever.
It’s a waste of money.
It won’t create jobs.
It won’t make our economy better.
We need to get the word out there and make it so this is not a ‘free vote’ for the Congress. In the end, the bailout was NOT popular and NEITHER SHOULD THIS BE. IT SHOULD BE CONSIDERED A SHAMEFUL AND BAD VOTE TO SUPPORT THE LOOTING OF THE FEDERAL TREASURY.
It will make our balance sheet, already teetering, much worse. It will make the recovery a less stable and weaker one. It’s well known that the economic ‘stimulus’ of govt spending is barely above 1.2 or so, meaning you spend $500 billion and get maybe $600 billion in economic activity, but tax reductions are more like a 3 or 4X factor, *if* they are tax rate reductions and not special interest giveaways.
What this means is that you can replace $500 billion in spending with a $150 billion tax cut and doo more good with it, and you wont have the debt ballooning on you.
That’s what worked with Reagan, and that is what would work here: Tax rate reductions. Everything else is just lipstick on a pig.
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