We are a commune of inquiring, skeptical, politically centrist, capitalist, anglophile, traditionalist New England Yankee humans, humanoids, and animals with many interests beyond and above politics. Each of us has had a high-school education (or GED), but all had ADD so didn't pay attention very well, especially the dogs. Each one of us does "try my best to be just like I am," and none of us enjoys working for others, including for Maggie, from whom we receive neither a nickel nor a dime. Freedom from nags, cranks, government, do-gooders, control-freaks and idiots is all that we ask for.
I heard Rush Limbaugh on radio say that the stimulus bill being worked on in Washington should be split in proportion of the popular vote percentages for Obama and McCain between Democrat ideas of “infrastructure” and Republican ideas of “tax cuts.”
One is never sure whether Rush is joking.Regardless, I gagged. (Ed note: It was irony, BK)
Indeed, I’m gagging at the whole stimulus discussions.Whether spending or tax cuts.The concept of the stimulus bill is that by putting more money in some people’s pockets, demand for goods and services will be increased, which will stimulate business spending.There are several slips between cup and lip in this.
First, much of the demand we were accustomed to was speculation, and much else was reckless to prudent family budgets.Much home and auto buying, as well as much other consumer spending, was by those who couldn’t afford the purchases.This should not be restimulated.Those who can afford purchases will make purchases.
Second, relatively few of those who can afford purchases are rejected for credit.Loosening credit will mostly reallow those who cannot afford purchases to resume.
Third, though the stimulus bill is not based on currently increasing most taxes, unless we want to see a future major inflation tax on everyone due to this huge deficit spending we will see huge future tax increases on most to pay for the otherwise unsustainable deficit spending.
In short, the very idea of the stimulus bill is inane.
There may be grounds for some very, very limited and targeted, proven boosts to some people or businesses in real dire need, provided it does not become ongoing or contrary to their getting their affairs and operations in effective order.
The rest is sheer hooey. The politicians who support it are just trying to buy votes and contributions from their constituencies, at the expense of everyone else and of reason.
I'm not a usual listener to talk radio, and I must be becoming insensate to the many ironies and insanities I do hear, with people calmly talking about how to divvy up trillions of dollars they don't have. It's like a TV game show on LSD.
Limbaugh's program is shtick, based in Truth. He's made the comment, it would take at least two week of listening to understand what's going on. Otherwise you will not get it.
He says the best way to deal with absurbity is with more absurbity . If you aren't tuned to his frequency, would be easy to miss the point.
The people that voted for Obama did so for a reason....
.. God has sent him to help the little man win life's lottery & they know he'll find the cure for cancer. Chris (tingling up his legs) Matthews comes to mind.
JB Say said that recessions aren’t caused by a lack of demand, but by a lack of supply. Stuff that keeps being built keeps all those supporting and spin-off business abuilding. I understand that he’s beloved by the laissez faire crowd. Is there a Say or Austrian School expert out there who can enlighten us a bit more on this?
I also heard on the tube that Americans has been spending at 120% of their income, until recently, and now it’s closer to 60%.
I don't remember the movie.... maybe "Wall Street", but there's a scene where Catherine Zeta-Jones' husband hollers, "Greed is good!" If anything good comes out of this crisis, it might be that people get right with that greed thing. I just thought of a mantra of the 80's: "He who dies with the most toys wins." Enough of that.
(You didn't notice I couldn't remember the star who said 'Greed is good' but I did remember his wife? Nice brain, Meta. :)
I have two in-laws who bought houses out of panic that they couldn’t afford to wait, the prices were going up so fast. I went through the same thing 20 years ago. I financed 70K at 10.5% interest qualifying with my wifes income (I was in school). My in-laws financed an average of 375K at 5.5% with two incomes each and got about the same amount of house. Until recently I was getting multiple offers from credit companies in my mailbox every day, all promising that all of my dreams would come true if I just refinanced or borrowed or got credit cards from them.
I remembered what happened in Japan ten years ago, and kept my cool.
Say also said that government protections for debtors is a mistake. The solution might not be debtor prisons, but some kind of debt work release (like for infrastructure projects)? Banks might be less skittish about lending in difficult times.
I'm not an Austrian School type by any means, just appalled at the lack of knowledge out there by those who proclaim anti-Keynesian philosophies.
He didn't just say it, the Wall Street Journal published it Thursday: http://online.wsj.com/article/SB123318906638926749.html?mod=todays_us_opinion
P.S. In "Wall Street," Gordon Gekko actually said, "Greed -- for lack of a better word -- is good."