Let Them Eat Cake

February 5, 2009

in Economics,Politics

The Patron Saint Of Many CongressmenHave you watched television lately? A survey showed that the economic do-dos have received more than twice the air time on news shows as those who have advanced to at least the early 20th Century.

Watching these twits I sometimes find myself laughing, until I remember how much power they have to screw up any attempts to deal with the economic meltdown. The air time they get gives them an undeserved credibility and leads too many people to assume they know what they are talking about.

These people are graduates of the Marie Antoinette School of Economics. The primary elements of their Weltanschauung are known by various names. Some call it Reaganomics. Others refer to it as Trickle-Down Economics. Those poor, pitiful souls feeling the need of some pseudo-intellectual cover toss in a reference to the Chicago School of Economics. I simply call it nonsense.

They unintentionally provide a plethora of proof that they are missing all of the logic genes. Yesterday one Senator held sway on MSNBC, and probably any other platform on which he could embarrass himself. He was criticizing the stimulation package his side of the Hill considering.

He called it a spending bill, not a stimulus bill. He pontificated that it was wrong to spend money that our grandchildren would have to pay back. He wanted to eliminate the spending parts which he characterized as representing three-fourths of the package. The remainder, the tax cuts, he staunchly supported.

Stop and think, if you haven’t already seen his problem. We borrow money for tax cuts. Don’t we leave that to the grandchildren to clear up? And just how much benefit do they receive? Little if anything.

Now, how about the spending part? Well, it is heavily slanted to repairing infrastructure, building a new energy grid (that will profit the corporations who can’t find enough money to invest after paying all of those bonuses), building schools and other such frivolous projects. It seems to me that, although the grandchildren will still be the ones footing the bill, the grandchildren will receive some benefit for their generosity.

It would be too much to ask of us to foot part or all of the bill. We need tax cuts. Economists of every political stripe agree that tax cuts are the least effective form of stimulus we could devise. Admittedly one can find someone calling themself an economist somewhere in Disney World’s Fantasyland that will validate the hokum of these yo-yos. You just can’t find a reputable one.

It’s difficult to know if the Senator and the others of that ilk really believe tax cuts are a useful stimulant. I am convinced that they see tax cuts for the middle class as votes, tax cuts for the wealthy as campaign contributions and tax cuts for the poor as a cardinal sin. Given such obvious intellectual deficiencies I lean toward thinking that they do buy into such fallacies.

It is impossible to conceive of these mental midgets having to gall to keep pushing the very ideas that have almost brought the world to its knees as the solution. They must be true-believers.

One last little matter. I am losing faith in the political skills of Obama’s team. They offered the House a stimulus package. About 40 percent of the package was designated for tax cuts. It was obviously intended as a bribe for Republican House members. Bi-partisanship. Greenhorns.

The Republicans and Blue Dog Democrats had the tax cuts they wanted without having to haggle or give Obama their vote. They had more than they had expected without even lifting a finger. There should have been a package offered with no tax cuts included. Obama could then promise to include them for a number of votes. Now that’s bi-partisanship. That’s politics.

Given that the Republicans are playing the game so much better, despite holding ridiculous positions, Obama would be much better advised to use his congressional majorities and public goodwill to pass his agenda. His plans may not pan out as he hopes but the Republicans are playing to their base, hoping that the public will buy their snake oil and turn to them if or when Obama fails. Rush may be a drug-addicted criminal entertainer but they seem to be in lockstep with him in the desire to see the President fail. The problem is that, if he fails, we all fail.


sale konferencyjne March 27, 2011 at 12:59 pm

Appreciate the information, I was stumped on this problem for weeks. Thank you.

austins best locksmith February 21, 2011 at 6:39 pm

Sorry for not furthering the discussion, but I just wanted to say thank you for the insightful post.

Ed February 6, 2009 at 9:56 am

Quote: “The problem is that, if he fails, we all fail.”

This is the part that bothers me.

Crawford February 6, 2009 at 10:04 am

If you weren’t bothered by it I would be worried about you.

Comments on this entry are closed.

Previous post:

Next post: