It's a Bad Deal!
In their haste to make a deal on a stimulus package, Congressional Democrats are apparently willing to throw good economic sense out the window.
The package outlined in news reports this morning gets it half-right by ensuring that lump sum payments go to the lowest income earners, who need them most and are most likely to spend them, as well as to couples who earn up to $150,000 a year.
But the other half of the deal -- amounting to as much as $70 billion in tax breaks to businesses -- is nothing more than political acquiescence disguised as good policy.
For seven years, the Bush administration has pandered to corporate interests, and we've seen the results: soaring profits with stagnant wages and rising income inequality. Now that the nation is facing serious economic reversals, it's time for Democrats to challenge the reasoning that every time average people get boost, businesses need one too.
At a time of plummeting confidence in the economy, temporarily cutting taxes on business investments through 'accelerated depreciation' defies common sense.
Here's how accelerated depreciation works: In normal times, business owners write off the cost of equipment and other capital investments over a period of years, in equal chunks every year. Under the current plan, they could write off a larger chunk this year.
Proponents argue that this speed-up of tax write-offs will encourage businesses to expand now rather than waiting a year or two. But businesses aren't likely to expand if consumers aren't buying their goods -- no matter how attractive the tax incentives.
It's far more effective (as well as humane) to get the money directly to those hardest hit by the worsening slump. There are quick and easy ways to do this. Here are three already proposed by the Economic Policy Institute in its Strategy for an Economic Rebound: Lengthen unemployment benefits to help those thrown out of work; increase aid to the states to prevent them from cutting essential services and raising taxes (which would only deepen the downturn); pump money into badly needed repairs and maintenance of schools, bridges and other crumbling infrastructure.
It's not too late to stand up to the Bush administration and Congressional Republicans and insist on a stimulus package that works and helps those who need it most.
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I am pulling my hair out. I read these posts about the Democratic majority caving to the Obstructionist minority still left in Congress and the decider/vetoer President and I scream.
How can you expect them to repair in one year what the Republicans did in 7 with a Congressional majority of co-conspiriters.
One Presidential candidate is supporting the very same bi-partisanship that these people are having to contend with. Bi-partisan compromise is not "My way or the Highway".
Do you actually think the Republican giveaway to big business was a Democratic idea. You're lucky the Democrats were able to get anything through for the people who need it.
Shut up, cash your check, and pay your electric bill but quit harping on the Democratic majority in Congress.
As the disparity between the rich and poor grows, and since the economy is based on consumption, consumption will decrease as poverty increases. The economy is out of balance, and a small, one-time present from the government isn't going to change that. How about this: we pretend we're at war and take all of that money that we're using to "protect Americans" and instead just divide it evenly among the people. Think of what those trillions would do for our economy if they were actually going to the people. --It's a pretend war were we finally decide that the health and well-being of all citizens is worth the cost that we would otherwise be using to kill people with (while trying not to die.)
The cure for everything is supply side. Problem is apparently too many goods for the consumer demand or do I misunderstand the basic idea of a recession. People aren't buying the goods that are for sale. Solution: encourage more production.
Does that reasoning even posit a rational owner. If I see that problem as an owner and I get cash, I would first look at the possibilty of buying a lobbyist instead of stocking more inventory.
The only thing that's going to happen here is the Corps getting tax breaks are going to POCKET the money... get it... just as they've done in the past 7 if not 20 years.
I hope most folks will use the rebate to reduce personal debt. That would stiff the finance industry who are the ones mostly responsible for the mess we're in. Debt free in 08!!! Go for it!
I think we all realize that a 'stimulus package' is not the answer (my package is stimulated quite enough, thank you).
What we really need is to let this economy of ours reset once and for all. Prices have spiraled out of control and need to return to normalcy. We've reached a point where houses should cost $60,000 not $360,000. Cars should cost $5000-$7000, not $30,000-$40,000. College tuition should cost $400-$700 per semester, not $4000-$7000. The reason prices are so high is because financing allows them to be this high.
Only a full reset of this economy can change things.
Yet another example of some spineless Dems substituting "compromise" and "bi-partisanship" for integrity and good judgement; for standing on PRINCIPLE! Their seeming endless willingness to capitulate to Bush&Co and give even more of our nation away to the super-rich and greedy corporations or fund the obscenely bloated war machine makes them complicit in the crime! Instead of standing up and speaking out for America and our people like John Edwards, who vocally articulates the abuses, greed and obstructionism of powerful corporations against reform, they essentially give cover to Bush policies and corporate crimes. Speaker Pelosi seems to lead the way in this cowardice especially when she proclaimed that "impeachment is off the table"; an incomprehensible and timid blunder (IMO) that only served to encourage even more outrages by the Bush/Neocon Regime!
I would we had more Dem leaders of True Grit like Sen Dodd and Russ Feingold who are fighting the proposed Bush retroactive immunity for the quisling telecom companies!
Where are the rest of our hero's?
The Republicans can try to invoke their Corporate backed fix for our economic problems and we really can't blame them for supporting their business friends as usual, however, we can blame the current Democratic leadership for caving in to their Right-Wing beliefs. Between making Bushes political life a piece of cake over the last year, throwing open the door to cheap labor supplied by illegal aliens who are subsidized by American taxpayers for corporate interests, and continuing to fund an illegal war that was justified with over 300 lies to Congress, the UN, and the American People, they have all but guarenteed a Republican victory next November. If you think it's bad now, Just wait until you have to face President John McCain who was calling for the start of WWIII three months ago with his rendition of "Bomb Bomb Iran". Apparently four thousand dead Americans is just a good start !
Dennis Kucinich is our last hope !
All they are doing is looking to get the stock market up short term by fighting the last recession (the last war?) when this is completely different.
The problem has been is going for a while but borrowing has hid it. This easy borrowing has not been an accident by the administration. They aren't gonna care about the consequences of keeping everyone economically "happy" about supporting (or not caring about) the war.
It seems to me that Hillary is the only democratic candidate that has honestly talked about the domino effect of the housing crisis and how that needs to be nipped in the bud right now to stop the cascading effect of what can still happen.
We escaped one run on a fund in Florida, it could be much worse. Countrywide was quietly bought and if it had gone under, the panic would have been much higher.
All kinds of scary stuff is going on and barely making it in the news.
This borrowing has been hiding: people making less money, everything costing more, layoffs happening right and left.
A tax rebate is not going to solve it and no small business has the cash to buy the big ticket items they can write off anyway.
How about this as the best way to solve this without reaching into the government coffers? Lower the maximum interest rate that can be charged, and forget the 30% - lower it to 18.5%. If a person has 10,000 on credit because they cannot pay their bills, be it medical or food or gas and they are paying 35% interest, they are paying at least 3,500 to lenders a year. (Not including late fees and other extras) Lower that by half and they get back their 1750, not just this year but every single year for a while. This will give a real break for folks using payday lenders as well as credit cards. There is no chance in hell this will happen because this is a bail out for the banks, not the consumers.
OR...how about putting some of those who are unemployed to work with public works projects to repair our crumbling infrastructure? Or does that smack of too big a government for the Republicans?
In my opinion, most small businesses aren't going to expand now. Why dump money into fixed assets if, due to a deepening recession, the business might not be around long enough to take advantage of accelerated depreciation? The poor aren't going to be running out spending their tax rebates on things like furniture. They have to pay electricity & heating bills, which will, ultimately, make the rich companies richer.
I smell bonuses for corporate executives...
Today's editorial by, of all people, Bill Clinton and "Ahnold," is a good one. If you really want to stimulate the economy, look at predatory and outright fraudulent consumer banking practices. Look at usury. You used to get your hand chopped off without surgery for that ... and there's a very good reason why.
America finds herself beaten-up by the direct consequence of "legalized" ... crime.
And many of those criminals are legislators.
This is, still, an enormously powerful and proud country. Stop the looting, stop the profiteering, punish the guilty, and step out of the way.
Because our Senate Democrats are wimps, it is too late--for many things. Look at how they're pushing telephone company immunity for lawbreaking as i type this--you think they're not going to reward their big donors with this stimulus thing too?
It's disgusting.
I say borrow as much money from China as we can and then stiff 'em. What the hell? God is on OUR side after all.
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