For the GOP to take an ideological tack that is the wrong economic tack at this point could be bad for the US and bad for the GOP (as it was in the 1930’s and 1940’s).
I support the theory, but right now Keynesian economics is the right move. The nuance of wanting to avoid wasteful spending and spending period is definitely lost on voters.
Moreover, as much as tax cuts sound like a good idea, the possibility that they would be spent (thus stimulating consumption and growth) as opposed to saved is a not 100% clear.
If there had been any doubt the bill would be passed, I doubt that the GOP would have managed unanimity. On the other hand, the message sent is both good and bad. It is good that the GOP is sticking to its principles. It is bad that at present the message was one of blocking as opposed to coming up with alternative solutions.
As for Pelosi - she is what she is. I don't feel the need to write that type of language here.
“Keynesian economics is the right move”
Couldn’t be more wrong.
“I support the theory, but right now Keynesian economics is the right move.”
John Maynard Keynes needs to be dug up, a stake needs to be driven through his heart, and then he needs to be re-buried, this time for good.
Gov’t intervention IS THE PROBLEM. It’s not the solution.
Try reading the Constitution, and then, for good measure, the Federalist Papers.
Keynesian economics is NEVER the right move. Since the The General Theory of Employment, Interest and Money, was first published by John Maynard Keynes in 1936 we have accumulated over 70 years of contradictory empirical data.
Balderdash! Anyone who thinks that it was 'balancing the budget' that prolonged the depression is smoking something. Our government is already spending far in excess of what it's taking in. These idiotic Keynesian policies stand to put government debt at 25%+ of GDP within a couple of years. All it's doing is digging the hole deeper. IF this nonsense actually did work (big IF there), any uptick in the economy would cause inflation to soar out of control, knocking it right back in the dirt. However, it won't work, and the response will be an even larger 'stimulus', which will make things even worse. THAT is what prologues recessions/depressions and that's exactly where we're heading with the policies that you are advocating for.
Moreover, as much as tax cuts sound like a good idea, the possibility that they would be spent (thus stimulating consumption and growth) as opposed to saved is a not 100% clear.
Spoken like a true nanny stater. Can't let people have their own money, because they MIGHT not do what we want with it. Far better for the government to confiscate that money and make the decisions for them.
It is good that the GOP is sticking to its principles. It is bad that at present the message was one of blocking as opposed to coming up with alternative solutions.
Color me amazed that someone so ideologically fuzzy would be uninformed. The GOP did have an alternative plan and it was voted down 266-170 yesterday.
There is a reason that the very first entry course to the study of economics - “ECON-101”, or the equivalent - is Macro Economics, which is entirely Keynesian. It considers spending by government and in the private sector to be completely equal in effect, and further, because it is based on aggregate measurements, it absolutely fails to consider the motivations and incentives of individuals and firms that make up those aggregates.
MacroEcon might be a reasonable place to start - after all, it does begin the process of analytical modeling using equations and graphs, which leads to an easier grasp of the data. But it is a TERRIBLE place to stop, because it offers only a false confidence in its superficial explanation of the effects of various economic policies.
What are you doing on this forum you damn socialist? Go to DailyKos or DU.
Your “mid-1930s” is off-base. FDR took over in March 1933 and none of his pump-priming was designed to balance the budget. For that matter, it did not get us out of the Deparession.
I don't care what the American people do with that money. They can put it in their mattresses for all I care. I just don't want the Congress to have it to depend on for their pet projects. THAT'S why they don't want the tax cut. It cuts into the pork going to their constituents.
It's interesting that she mentioned the vote in 1993, when the Republicans refused to cooperate with the Dems in their budget. The American people must have liked that action, because the following year, the Repubs. took back the house. I think folks will find that it is at THAT point that the budget surpluses started happening, NOT because of any of x42's policies.
“as much as tax cuts sound like a good idea, the possibility that they would be spent (thus stimulating consumption and growth) as opposed to saved is a not 100% clear.”
Saved money is as good as spent. When money is saved, the banks are able to lend, which leads to spending.
I too support a mixture of tax cuts and spending.
However, it needs to be the right spending. According to the WSJ, only a tiny part of this package is infrstructure spending etc...very small amount.
Most is on frivolous stuff that has nothing to do with job growth.
And of the course the tax cuts aren’t really that at all.
It will be a disaster.
Obama! is going to remove a trillion dollars from the Free Market. Some 12% of that trillion will find its way into infrastructure spending - which is money badly spent, but it will be better spent than the other 88%, which is going on crazy capitalism-destroying stuff.
How is all this going to act as a net good for the economy? We need to cut taxes and get Govt out of the way. America's only hope is its economic engine. Taking the petrol out of that engine and replacing it with hyper-expanded Government is absolutely demented.
Yeah, Keynesian measures that won’t take effect until we’re out of the recession (and included money for birth control) are the way out.
Good grief.
Not so. The House Republicans offered an alternative, composed chiefly of tax cuts. The Congressional Budget Office -- now staffed by Democrats -- estimated the GOP plan would create 6.2 million jobs (about five times the estimate for the Democrat package).
However, because of the new House rules -- propagated by Miss Nancy -- the GOP alternative could not be introduced. Nor was the minority allowed to amend the majority's bill.
It's not the GOP that should be accused of "partisanship" in this case. Pelosi & Company have a lock on that practice.
Better study a depression that the government successful prevented.
http://en.wikipedia.org/wiki/1921_recession
By reducing taxes and cutting spending, the government got us out of the sharpest deflation up to that time and reduced World War I debt by almost 40%. They also sparked an economic boom.
Have you always been this stupid.
I have a degree in economics and no honest knowledgeable economist.
Statistics dating back for decades demonstrate the the money multiplier for government spending is about 2:1; but over 5:1 for private investment. It is a lie that government spending improves the economy. It is just the opposite; or were you living undr a rock during the Reagan years?
Democrat Vote Buying “Stimulus” Bill to Give Tax “Credits” to Illegal Aliens?
So, you believe that eliminating the capital gains tax, cutting government spending (alleviating the burden on the debt market to instead go to companies) and not bailing out stupid businesses is all wrong and incapable of providing a better basis for going forward?
Keynes is NOT the right way to go. Ever.
There's no danger of balancing the federal budget, anytime soon...it's a question of whether throwing money at a problem has ever worked...it's a question of whether a 1.2 trillion dollar deficit(not debt; deficit) will bring another set of problems, on top of the $$$ borrowed to bail out the banks.
What's more, what the big "O" promised, an infrastructure bill, does not in any way resemble what has been created.
Why don't you explain why welfare for local government employees will help the economy? Why don't you explain why shoveling billions of $$$ to ACORN will provide stimulus?
Why don't you pay attention to what's going on?