Not Tax Cuts Again!

It is a terribly sad to discover this weekend that the Obama stimulus will probably include $300 billion in tax cuts. It is of course designed to placate the Republicans and conservative Democrats. But it is another sign the nation seems incapable of doing what it must. There is little sense of the urent need for serious public investment and social programs to help even the playing field.

There are plenty of computer models that will tell us it will stimulate the economy as well--or almost as well--as state aid or more unemployment insurance. First of all, it will have a lower Keynesian multiplier, so it makes it a second best stimulus. Second, it depends on how it is targeted. If it goes to the well off or big business, it will be mostly wasted.

But the tragic shame of it is that America has too many crying needs for this political pandering, and Congress apparently has insufficient sense of how deep the nation's economic and moral hole now is to disavow it. Such attitudes are the telling sign of a nation in decline.

Moreover, the evidence is overwhelming that a somehat bigger government sector in no way will impede the growth of productivity. To the contrary, an age of neglect will make any well-done government investment a productivity stimulant of even dramatic potential.

Finally, taxes are not high in America. I repeat, taxes are not high in America.

Such days as these makes it hard to keep one's chin up. America can't afford any more big mistakes. But this will be one of them.