As I mentioned in my previous post, Bush's economic stimulus package of 2001 had no noticeable effect on the economy. The $300 "rebates" sent to individuals didn't get spent, the tax incentives for business didn't spur investment. Now, word has come down that there is a tentative agreement over this year's stimulus package.
It will be comprised of a $300-$1200 "rebate" for people, and tax incentives for business.
Wow. I can only imagine how the conversation in Congress went.
Republicans: "Hey, remember that thing we tried seven years ago that didn't do squat to help the economy? Let's do that again!"
Democrats: "Nah. Let's try new stuff like expanding unemployment benefits and boosting food stamp programs."
Republicans: "Old ideas are better than new ideas."
Democrats: "But old ideas failed. New ideas might succeed."
Republicans: "We're afraid of new things."
Democrats: "You're right. Let's try the old crappy ideas that didn't do any good last time, because we're a bunch of spineless turds who don't like to cause any trouble for the bullies who might be the minority party but are still calling the shots."
And thus we have another plan from Congress that allows Bush to claim victory but won't actually do anything useful.
Bravo.
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5 comments:
Hey Mike it looks like you had some time to get into a little political commentary!!! I am not an economist and I don't even play one on my blog, but from what I have read this is for the short term and there is no time to squabble like the Washingtonites do. This is the quickest way to shove something through quickly with both sides in agreement. Perhaps it isn't perfect, but it is something and Wall Street didn't seem to hate it with the DOW up today and yesterday. The fed deficit is a concern, however deficit spending at an extremely low interest is far better than down the road interest rates. They will eventually need to go up to squash inflation. And even though the housing market SUCKS, at least house prices are falling considerably which is good for the consumer as the standard of living doesn't currently match the price of homes.......I printed off your story and am going to read it tonight...great post!!! :)Nikki
Hey, Nikki. I'm not arguing that we don't need a stimulus package of some sort. I just don't see the point of trying the same thing that failed before.
I think that the stock market has been responding to the Fed cutting interest rates, rather than to this stimulus package. (But then, I'm not an economist either.)
The economy was far worse than it is now, for the last stimulous. This is a band-aid but from what I understand, that may be all we need since the down turn has only begun. This is only to stop a down turn. I also think public perception effect the economy more than this stimulous packages. The media going on and on about recession is far more damaging than the actual down turn itself. I know a lot of people feel the same way you do. conservative talk radio was going nuts today calling the package worthless. They want tax breaks and that is all fine and good for the long term and of course that comes with some bickering. Sorry I am chatty again. lots of snow coming down and I will be in the house and bored!! Off to watch the debates.. :)Nikki
Nikki, I hope you're right. I hope that this time the stimulus gives the economy the jolt it needs to avoid a recession. I don't think it will, but that's just my opinion.
I'm a student looking for informatin on an Obama article for school, and I have to admit this was a good laughing break for me.
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