IIB
(That's idiocy in broadcasting, by the way.) So, on my drive to class, I sometimes put on talk radio. And there, I hear Rush "Stupidity on Loan from God" Limbaugh telling listeners "If only the Democrats had passed the tax cut Bush had recommended last spring, this whole financial crisis could have been avoided."
I see. In the midst of record government deficits, and a bursting bubble caused by too much debt, the fix was... more debt!
Yes, Rush, and if only the Democrats had stuck their heads as far up GWB's rectum as you have yours, then the current economic situation wouldn't stink!
I see. In the midst of record government deficits, and a bursting bubble caused by too much debt, the fix was... more debt!
Yes, Rush, and if only the Democrats had stuck their heads as far up GWB's rectum as you have yours, then the current economic situation wouldn't stink!
I don't know whether to laugh or cry or be angry at such people.
ReplyDeleteHe actually thinks the problem was that there was not enough money floating around in the economy?
Hang on a second, guys. I totally agree that the economy wasn't in this bad shape because of high tax rates, but you're both acting low lower tax rates don't help an economy.
ReplyDeleteObviously no one would have done this politically, but if (say) they had cut government spending by $500 billion, and reduced marginal tax rates to give a tax cut of the same amount (assuming a static accounting), then that would have been great.
Bob, the Bush tax cuts have not meant reduced spending...
ReplyDeleteBob,
ReplyDeleteI disagree on a few things.
1.
John's point cannot be overstated, and it is critical that tax-cut apologists recognize it.
Cutting spending is lima beans, and tax cuts are dessert. It is *easy* to tell people here's dessert. Have fun. Eating your lima beans however, is actually the more important part of the equation.
2.
Tax cuts don't always help the economy. When they are done as one-time tax rebates based on income you have already earned, as the stimulus packages have done, they do absolutely nothing to get people to choose to work more. At best, you can hope people will spend the money, but that often isn't even what people choose to do with it.
3.
This isn't a situation of "taxes were too high" or even "government spending was too high". Government may be responsible for many ills, but beware one-itis. The kind of sudden, dramatic downturn we are seeing is hardly the result of something quite that mundane. If it were, it wouldn't have been led by the finance industry, and it wouldn't have been in direct relation to their exposure to sub-prime mortgage markets. The people with those types of loans largely weren't paying much in taxes anyway, and they probably weren't overburdened by too much government spending or regulation that all came to a head a couple of months ago to create a perfect storm.
"One-itis"--argghhh, I hate that. If you must coin on "one," it should be "one-osis," but does anyone listen to me? Hahhh!
ReplyDeleteI thought dubious word-coining was still legal until Bush actually left office.
ReplyDeleteI can settle for -osis though.
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ReplyDelete