12/07/2010

New Fox News piece: Does President Obama Understand Economics?

My newest Fox News piece starts this way:

Neither government spending nor tax cuts automatically provide an economic stimulus. But President Obama has continued to make this mistake. Take a look at much of what he insisted be included in his tax cut deal with congressional Republicans.
So what makes the economic pie bigger? There are two sides to this. The supply side: lower marginal tax rates mean the more that people get to keep from each additional dollar that they earn, the harder that they will work and the more that they will produce.
The other view, the Keynesian view, also often called "the demand side view" or "the multiplier," is that giving the money to the right people to spend which will create wealth. Democratic House Speaker Nancy Pelosi made this claim earlier this year when she advocated more unemployment insurance benefits: "it injects demand into the economy and is job creating. It creates jobs faster than almost any other initiative you can name. Because again it is money that is needed for families to survive and it is spent."
We see this line of reasoning in the proposed 13-month extension of unemployment insurance benefits to continue paying out benefits for up to 99 weeks.
It is also the basis for the president's proposed expansion of the earn income tax credit and items such as the college-tuition tax credit for relatively lower-income families. . . .




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1 Comments:

Blogger Harry Schell said...

He understands economics just as well as Marx did, or maybe Lenin is a better example.

The more he can control, the more he can assure his own enjoyment. "The people" are a means to his enjoyment, and taking care of friends is the path to long term power and enjoyment.

Punishing enemies is for those who won't go along to get along. They are a threat and must be dealt with as such.

Little self-absorbed men and radical ideologues sometimes act the same way, as it functionally concerns their subjects. There is little difference between a Nazi, a fascist, a communist or radical socialist. All of them are statists who react to non-statists in similar ways.

All of them represent a step backward in time to the law of tooth and claw, of the feudal times where elites ruled and took what they wanted, even your bride on the first night of marriage. It might not get that bad again, but where will the needs of the state stop? Progressive, my ass.

12/07/2010 3:05 PM  

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