It’s the Economy, You Fucking Moron

How’s that for an attention-grabber? 🙂

The media has finally started focusing on the state of the economy, and only a few years late – good job guys.  Somehow there was no “emotional center” to a story about an ailing economy perilously balanced by record debt and insane mortgage lending practices, at least not until the house of cards started tumbling down.

Now all the talk is about how to fix things.  And, as usual, the people in the White House are ignoring the advice of experts on how to go about doing that.  Rather than listen to our own Federal Reserve Chairman, the Administration’s proposal provides -ZERO- relief for those below the lowest income tax bracket.

Why? My gut suspicion is that conservatives are appalled at the idea of giving tax rebates to people who don’t pay income tax in the first place.  It’s not an unreasonable position in and of itself, but once again the conservative ideology is incompatible with the larger-scale reality of what’s happening.  So incompatible, in fact, that the GOP would rather cut off its nose to spite its face.  If rescuing the economy involves giving some money to people disproportionately to what they paid in, the thinking goes, it’s not worth it.  (It’s also worth pointing out that these people do pay taxes, just not on income, so this isn’t a free giveaway. But even if it was a free giveaway to the almost-poor, would you really prefer a national recession over that?)

FACT: it’s in everyone’s best interest to have a strong and vibrant economy, be they rich or poor.
FACT: people with lower incomes are much more likely to spend a rebate than those with higher incomes.
FACT: business tax cuts have only modest effects at best, according to the Fed’s own economists, and they also have adverse effects on state budgets.

The White House needs to put ideology aside and propose a solution that will have maximum effectiveness.  That means swallowing their pride, admitting that, while it sucks, low-income people really are the key to turning this ship around, dispensing with the petty counterproductive arguments over fairness, and putting pen to paper with the resolve of true leaders rather than ideological extremists.

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2 comments so far

  1. sparrow on

    I agree. Actually, John Edwards has been beating this drum for months, only to deaf ears.
    Also, all businesses do with tax cuts is place the extra cash directly into their well-creased pockets.

  2. Tim on

    John Edwards keeps looking better and better as the primaries drag on. Note the difference between right and left in this race – the GOP candidates are pandering hard to their base with who’s a better Christian, who’s more opposed to taxes, who’s more like Reagan, etc., while the Dem candidates are falling over themselves trying to sound GOP Lite. It’s symptomatic of the much greater problem with our current political system, which is that one party refuses to represent its supporters for fear of being painted as… well, as the opposition. Beats me.


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