kevinm

Yet Another Gruesome Employment Report

Hmmm, Felix. Methinks you are drinking the Koolaid...

Why do you think "stimulus" needs to be rushed out the door? Did the "stimulus" package rushed out the door last year do any good?

It would be fine if what Obama calls "stimulus" really was stimulus, and not just big government handouts in drag. Why not just cut marginal tax rates permanently, and let the market decide the best use for the capital? Of course, this is not what Obama is suggesting.

He is creating an aura of panic and false urgency--'the economy is even worse than we thought (look how much Bush and friends messed up!), so you have to pass my stimulus now or the world comes to an end--and if you don't pass it instantly, it is not my fault!' This is what manipulative pols do--create a crisis to ramrod through their pet plans.

This is not, of course, to deny that things are ugly. It is just that the Obama plan, such as it can be discerned, does not look like it will help. And it may well hurt by growing the size of the most unproductive segment of society--government--w... increasing the deficit (and future taxes on the MOST productive segment of society).

So, in order of effectiveness, here are the alternatives:

1) Marginal, permanent, across the board tax cuts for businesses and individuals. This would expand the economy most efficiently, and eventually decrease the deficit as tax receipts increase.

2) Rather than increasing govt spending and waste, CUT government spending.

3) Do nothing. Let the market cleanse itself. At least you avoid the waste and long term harm of....

4) The Obama big government, unproductive, non-stimulus 'stimulus' plan, which is really welfare for those who do not pay taxes, and Chicago-style giveaways to those businesses that would get the infastructure goodies. It will also balloon the deficit.