Passing this ‘emergency’ spending bill is an economic and political blunder of historical proportions. The American people dislike the Obama ‘emergency’ spending bill. The Republicans don’t like it, but are trying to find where they parked their conservative-backbone. Economists don’t like it. But here we are anyway, about to spend ourselves into Leftist nirvana/oblivion.
This bill is mostly a spending bill. It will be like candy for the economy. It will cause a short term buzz on the economic front and then we will crash to a lower level than before. It will have no lasting effect. What we need are actions that stimulate those entities that actually create and drive this country’s economy: businesses. We need a major corporate tax cut to spur growth! Investor’s Business Daily understands this truth as well:
Many economists think tax cuts would be the best stimulus. One of the strongest proponents of this theory wrote in 2007 that for each $1 in tax cuts, GDP will expand by $2 to $3. Her name is Christina Romer, now President Obama’s top economics adviser.
We hope her boss is listening. Spending should be de-emphasized and tax cuts emphasized for the bill to succeed. This would not only boost the economy. It would be the surest way of getting political backing from voters — and perhaps even bipartisan congressional support from Republicans.
Obama thinks that spending is the way to make an economy grow. Let’s hope he applies some ‘change we can believe in’ to himself and listens to his top economic advisor. Surprisingly she sounds like a sane, free-market capitalist instead of a dead-idea Marxist.