Can you fix a broken nation with a broken record?

Bailout, Barack Obama, Economic Policy, Economic Stimulus, Economy, Election, Infrastructure, National Infrastructure Reinvestment Bank, Obama, Politics, President Obama

Adam

I am going to say that it is probably difficult to fix our current situation with tax cuts.  I know…I know, the crazy liberal wants to raise your taxes and then spend all your hard earned wages. Not exactly.

I have a difficult time grasping the notion that the conservative chorus can only recite the same tune we have heard during a very recent 8 year administration.

“The only way to stimulate the economy is with lower taxes and tax incentives.”

Everyone is skittish now. Consumers, producers, and lenders. The argument that tax incentives will create job growth does not work.  Lets take a look at a couple of scenarios.

-  We create an incentive where an employer gets tax breaks for hiring new employees. (Currently part of the Obama plan, but really done for the purpose of appeasement)

So, under this theory, a company will hire a new employee for the purposes of expanding production of a good that a consumer is buying less of. Does not really work out in my mind.

- We lower taxes…

Well, with all of that extra money from lower taxes, companies will be able to expand production. Okay, so they expand production after borrowing to purchase what is necessary for the increase in productivity. They have to borrow because lower taxes do not mean available cash. This also seems to be a difficult challenge due to the well publicized reluctance of banks to give our money.

So why is it that the party that got a strong message from the American public this past election is grasping hold to its oldest idea?

I would like this cartoon to be an exaggeration, but right now it doesn’t seem to be.

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1 Comment

  1. janna (Who am I?)  •  Feb 16, 2009 @8:46 pm


    Great points, Adam. I think if we as a nation are going to band together in “pull ourselves up by our bootstraps”- make sacrifices for the greater-good family-ho-down fashion I think we need to look at what this country really needs. Do we need to create more shit (that a lucky few of us can afford to distract ourselves with)? Or do we need better educational systems, social/environmental programs, and community building infrastructure like art centers, libraries and public transportation which can foster fulfilling human interaction and enrich our lives instead of distract us from them???
    p.s. Why is it that the group of people who push for less government get to be the patriotic ones…I feel pretty damn patriotic.
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