Saturday, September 11, 2010

Stimulate With Stimulus Baby, Stimulate.

Well. Who's right. When it comes to tax cuts or tax increases, the answer is, who's running for what office? If you're asking what's best for the economy or our debt, then tax increases are the best way to help solve the problem, at least when it comes to the tax question. Now a lot of people disagree with that statement, but if you ask the non-partisan Congressional Budget office, then it's tax baby tax. Actually that's not what they said. What they said is that the so called 'Bush tax cuts' should be allowed to expire. The next best thing would be the Obama proposal to leave them be, for all but the wealthiest two percent of Americans. So why the wealthiest? Because they wouldn't spend that money and that's what's needed. Spending. Next question. Why are we so much in debt? Because Pres. Bush did several things without paying for them. He put them on the credit card, so to speak. He gave the tax cuts, he prosecuted two wars, the costly medicare prescription program, and then partly because of those decisions, the recession which started during his tenure in spite of what some talk-show hosts would have you believe. Next question. How do we get out of the recession? Well, it may not be popular and no politician running for office would consider it, but some sort of stimulus is necessary to get the public confidence up and people buying. See, companies don't hire because of tax breaks, no matter how enticing. They hire because there is demand for their products. That makes complete sense no matter how you look at it. You can't get demand unless people are willing to buy. That's why you stimulate. That's pretty much what the word means. Of course there are lots of people who have given the word a bad name. Mostly politicians and talk-show hosts. But look at what the auto deal did. You got a big discount for trading your old clunker for cash. Car sales went through the roof. It was a great success by any measurement. It was a stimulus. I rest my case.

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