So the U.S. economy is getting more and more fucked every day... in fact, today's inflation numbers showed that inflation in June shot up 1.1 percent from May, the largest month to month increase in 26 years. This news, coupled with the continuing housing crisis and the obscene price of oil will only work to continue fucking the U.S. economy over with a giant pointed stick. So, to whom do we turn in the midst of this economic crisis? Congress, of course! I mean Congress can always be trusted to provide a hastily thought out, poorly designed plan to solve any national crisis, right? Now is no exception.
Congress recently implemented a 168 billion $ "economic stimulus" package in which the government sent Americans checks of up to 600$ in order to give the economy a little boost..... of course the real purpose of this package was to tell Americans, "we know you fucking hate us and the country's going to hell so here's a few hundred bucks in beer money to keep you from going completely bonkers on us and taking a collective national shit on Capitol Hill Lawn." Don't get me wrong: I enjoyed receiving my check of 180 bucks in the mail, which I promptly used to stimulate the economy (the underground economy is still part of the economy). But come on, does anyone on Capitol Hill really think that sending people a few hundred bucks will do anything to solve the country's highly complex, multifaceted economic problems? I doubt it. True, it would be difficult for the Democratic Congress to pass any legislation of substance as it would face an immediate veto from President Bush. But is this really the best they can do? Apparently so....
House Speaker Nancy Pelosi announced today that Congress is considering implementing another similar stimulus package because the effects of the last stimulus were largely negated by ever-rising energy prices. Don't get me wrong, I'd be thrilled to get a couple hundred bucks more from the assholes in Washington but as a public policy this is just plain DUMB. First of all, the Democratic Congress is following the failed Bush model of cutting taxes during times of both record spending and record budget deficits. The government is in no position to be granting these hand outs right now. And no shit the effects of the last stimulus were cancelled out by rising gas prices - so why don't the boneheads on Capitol Hill actually attempt to formulate a cohesive energy and economic policy that will address the issues of high gas prices and the lagging economy in general? That would be far too much to ask of the morons in Congress who care a lot more about their own reelection campaigns and pandering to the special interests in their districts than in enacting meaningful legislation to address the country's long term problems. SENDING EVERYONE A FUCKING CHECK FOR A COUPLE HUNDRED BUCKS IS A PATHETIC ATTEMPT TO APPEASE PISSED OFF AMERICANS WHO ARE FED UP WITH THEIR GOVERNMENT. Now I beg Congress: sit down and fucking do something!!!!... Later
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6 comments:
I agree...
The main problem is Bush and congress' lack of comprehension/care about the budget deficit. Simple supply side economics: The bigger monetary deficit the Fed runs, the more lower interest rates result. Thus saving rates go down and investment increases, even though the leveraged capital handed out by the banks was hot off the national mint - and essentially worth nothing. The government has been attempting to maintain a bullish facade by granting shitty mortgages/loans and this dumbass 'stimulus' plan. It's time to give up the ghost, 'Helicopter Ben'... stop cutting interest rates. Let the public/Lehmen brothers reap what they sowed. With all the non-existant capital still in existence, is it any suprise some markets are taking a downturn? This problem can't be erased by a demand surge. A message to the president: Go back to the source, let the wheat separate itself from the chaff, and REDUCE THE FUCKING DEFICIT.
Again, Barack worries me... I wonder whether, once in office, he will return to his liberal tax-and-spend roots or do as he has promised and balance the budget.
-Mistaboogy
Alec,
Thanks again for another thought provoking, fucking good post. Bush's economics are certainly supply side economics borrowed directly from his model on economic policy: Ronald Reagan. Like Reagan Bush drove the country into massive deficits through massive increases in defense spending coupled with massive tax cuts targeteted mostly towards the rich. Of course supply side economics is a crock of shit - investment increases will temporarily cause an uptick in the market as rich people, not knowing what else to do with their newfound 6 figure tax breaks, invest in equitites. Such tax cuts aimed at increasing aggregate demand only provide for a temporary economic uptick that is felt mostly by the rich. It does nothing to address the structural problems in our economy that are resulting in stagnant wages, a disappearing middle class, an entrenched impoverished underclass, with the disparity between rich and poor at its greatest points since the Great Depression. Supply side economics and its ideologoical cousin, the "trickle down theory" are a failed economic model that do little of substance to help the economy and do nothing to help the lower and middle classes.
Look at the War on Poverty as a model - supply siders pushed for the Kennedy tax cut in order to increase demand, which, just like the Bush tax cuts, created a temporary bull market but did nothing to help the lower classes. Had the Kennedy/Johnson policies focused more upon target initiatives such as job training, and public works programs, more needy people would have benefited.
As to Barack, I am not entirely confident in his commitment to reducing the deficit but deficit reduction is unfortunately not a hot topic to campaign on. People want handouts, programs, tax cuts, not deficit reductions. Keep in mind the two worst deficit presidents in history are Bush and Reagan.... fucking necons.....
-Artie
if we kick these right wingers out for good taxes will be raised (including the corporate gains tax (raising that is a great way to jump start the economy (almost as good as Obama's 100 billion dollar plan to increase government spending in sectors not included in GDP (including entitlement programs))))
In other news here's the list of the Noble Prize Winning Economists who recently endorsed John McCain's economic plan for America:
Gary Becker, James Buchanan, Robert Lucas, Robert Mundell and Vernon Smith
Also, the Dean of our Business School, Glenn Hubbard, has also signed the document
Put this on your blog
hope you're summer is good. and dude, your parents, Deans, noble laureates ... me....
who else's opinions are you consulting? hahaha
just messing bud hope you're summer is going well
-Marcello
I'm not sure you can toss too much blame on Congress right now. With a slim majority (essentially nil) and a Republican executive, there's not a great deal of change that can be made to the country's current trajectory. Anything done in terms of economic improvement will be done through the housing market, in my opinion.
And Congress has been working on the Housing Bill, which will provided much-needed relief for Americans. The reason it's taking so long is the GOP is doing all it can to stop the bill from passing (filibustering in the Senate, Bush's veto, etc). But once it's passed, I do have confidence that things will at least stop declining, if not begin to improve slightly.
But until there's more bipartisanship in Congress, any reform made will be superficial and shortsighted (as you noted, the stimulus package).
Marcello,
Your feedback is inishgtful and appreciated, yet misguided as always :). True, Obama will raise taxes and nobody likes higher taxes but we have little choice but to raise taxes now. President Bush, during a time of already record deficits, lauched the extremely costly Iraq War, along with significantly increasing expenditures on homeland security and domestic programs, drowning the country further and further in debt. The only way to balance the budget is to increase taxes, take it easy on the spending, and GET THE FUCK OUT OF IRAQ. True, Obama has proposed some spending increases but his plan to increase taxes and withdraw from Iraq will easily free up the funds for his programs in such areas as healthcare and education. It is amazing to me how conservatives bitch and moan about every penny spent on so called "entitlement programs" yet quickly sign away 100 billion every few months to pay for their war of terror. So those economists endorse McCain's economic plan, which includes continuing to spend obscene amounts of money in Iraq while doing nothing to help cover the tens of millions of Americans with no health insurance. At least we know where Senator McCain's priorities lie.
-Artie
Ivey,
Very good explanation as to why it is so difficult for Congress to get anything done right now. True, it is easy for me to flip out on congress in my blog but they are in a tough position to pass any sort of cohesive agenda right now. We can only hope that the Democrats will control the White House and both houses of Congress with commanding majorities so that they face no hurdles enacting their agenda. If they still cannot get anything done, I will not hesitate to rip them a new asshole from my blog.
-Artie
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