Comments on The 7-10: Palmer on Politics: The Stimulus and Republican Rhetoric

AP wrote: "Wealthy people don't spend money. That'...

2009-02-12T02:16:00.354-05:00

AP wrote: "Wealthy people don't spend money. That's why they're wealthy. They save it. They invest it."

Excellent observation, reminiscent of the old saying, "Them that has gets."

But there's more to be said. Wealthy people grow their wealth by knowing where, and going where, there's money to be made. If they can make more money by investing in a hedge fund that's driving up oil futures prices — to the detriment of the U.S. economy and their fellow citizens — don't be surprised if they do exactly that. Same goes for investing in Chinese manufacturing stocks and India high-tech stocks.

So, plowing money back to our wealthiest citizens through yet more and more-generous tax cuts than those already lavished on them during the New Dark Age of Bush is no guarantee they will play nice and buy U.S. stocks, bonds and such. Nor is there any guarantee they'll opt for a Cadillac instead of a BMW or Lexus.

All the more reason to abandon Bush's Robinhood-in-reverse approach and let his tax cuts die a richly deserved death.

I will give the GOP credit for chutzpah. It's easi...

2009-02-11T17:48:31.038-05:00

I will give the GOP credit for chutzpah. It's easier to be ideologically pure when you're in the minority. I only wish the Democrats had been so pure in 2003 during the run up to the war.

DrT,I wouldn't say the GOP is dead, but I will say...

2009-02-09T08:36:53.957-05:00

DrT,

I wouldn't say the GOP is dead, but I will say that it is fractured. When moderates stop being denigrated as RINOs and hard conservatives stop denigrating people outside of their ideological tent, I think the GOP can recover. But as for now, it's both divided and polarizing. The party won't die simply because there's nothing to replace it.

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BN,

Thanks for the compliment. Words like yours are what keep this blog going. Much appreciated.

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MM,

I don't see why the Democrats don't turn the tax cut issue on Republicans by stressing how they won't help people who just got laid off and use that to portray the party as out of touch with working families. I'm not a professional analyst by any means, but the tax cut argument reeks of 1 + 1 = 3 logic.

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S-4-0,

Part of the problem is that Bush and Paulson were hyping up the urgency of this situation and used it to force Congress to rush through a bad bill. I think a lot of politicians have economy fatigue and bailout fatigue. Now when the sky is falling, people are a bit more reticent because of this fatigue. I don't know.

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SWA,

Thanks as always for the compliment. I agree with you that targeting tax cuts to people who will actually spend the money is preferable to giving everyone a tax cut, even if it sounds better PR-wise to do so. Wealthy people don't spend money. That's why they're wealthy. They save it. They invest it. Putting $5000 in a CD will do far less for the economy than putting $500 in school supplies at Target or a new PC at Best Buy. People who don't have the money will spend the money--because they have no choice. The challenge is selling this argument.

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Snead,

The comic strip was an experiment. I have since taken it down because it doesn't mesh well with the tone of the site. Looks like you agree. I thought a political humor strip might work, but it didn't in this case.

Thanks for reading. And thanks for all the comments.

Uh... what's up with the comic strip?

2009-02-09T08:10:49.848-05:00

Uh... what's up with the comic strip?

A very good, thoughtful analysis, AP.I will add th...

2009-02-08T19:37:12.076-05:00

A very good, thoughtful analysis, AP.

I will add that tax cuts have proven to provide anemic stimulus in recent years. There are numerous reasons, including the fact that job security has become a contradiction in terms in our economy. So in a downturn even people who still have a job realize they could be next out the door at any time. Consequently, they're far more likely to set their tax rebate or reduced-rate money aside, for when the rent's due, the refrigerator and gas tank are nearly empty, and there's only unemployment money, if that, coming in.

You don't build a big turnaround on that.

The number of unemployed persons (11.6 million) an...

2009-02-08T08:50:11.822-05:00

The number of unemployed persons (11.6 million) and the unemployment rate (7.6 percent) rose in January. Over the past 12 months, the number of unemployed persons has increased by 4.1 million. The Department of Labor reported today that nonfarm payroll employment fell sharply in January (-598,000) and the unemployment rate rose from 7.2 to 7.6 percent. Payroll employment has declined by 3.6 million since the start of the recession in December 2007, .... most of this mess happening only in past three months! And some wonder Obama is pushing so hard for a stimulus package. The Herbert Hoover approach, do nothing, is all we need, leading us to a twelve year depression ??

It's embarrassing to admit this, but I had never c...

2009-02-08T06:39:23.940-05:00

It's embarrassing to admit this, but I had never considered problem #1, i.e., "A tax cut is useless to a person without a job."

It's a strong argument.

It's really refreshing to find a political blog th...

2009-02-07T22:55:30.765-05:00

It's really refreshing to find a political blog that attempts to have journalistic neutrality combined with logical analyses and viewpoint. Great post!

In my mind, the Republican party is dead. The neoc...

2009-02-07T22:10:03.399-05:00

In my mind, the Republican party is dead. The neocons sucked it dry and this is all that is left. They have run out of ideas after being left holding the bag for all the excesses of Bush years. They would be better to dissolve the party and reorganize conservatism with fresh ideas, if those can be found.