Friday, January 09, 2009

Obama stimulus and Republican Earmarks

The Obama Stimulus
We first need to recognize that this is a Bush/Republican recession. And, it is the worst recession since 1945 when everything slowed down at the end of W.W.II. That’s quite a record.
In response, the Obama administration proposes a massive stimulus. This is the correct remedy. It is basic Keynesianism.
Now the Republican Senators ( who significantly caused this mess along with Larry Summers and others), want more money spent on tax breaks for the wealthy. Does that sound familiar?
After preaching about No ear marks, they are demanding the biggest ear mark of all; a major tax break for big business. There is every reason to be skeptical. Recall that we gave the finance industry 350 Billion to unfreeze the credit market and instead they spent it on themselves.
The perils of using tax breaks as a stimulus, or as a major part of the stimulus, are explained well by Howard Gleckman of the Tax Policy Center here:

See this by Paul Krugman:

So, the Republicans, after creating this mess, see tax cuts for the rich as the way out of this mess. Time for some street politics. See the articles below.
Post a Comment
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License.