Economic Solutions

I've gone over these ideas before but I decided to revisit them again.

President George Bush announced a recession weeks before taking the oath. Before the oath could echo off the Washington Monument, Bush was pushing tax cuts to end the recession. His $2.4 trillion dollars in tax cuts probably started the recession of 2001 which began in March 2001 and ended in September before the 9/11 attacks.

How do I justify saying that?

The announcement of the tax cuts changed behavior among the elite and powerful. That change in behavior didn't increase productivity, it reduced productivity.

Think about the way Republicans think about welfare. Welfare gives black women no incentive to work or use birth control.

The certainty of an increase in take home pay without working harder, smarter, or better, removes any incentive to increase production.

So, let me make it simple. Bush cut taxes $2.4 trillion dollars. Our government had to borrow the money. That money then went to people who weren't more productive as a result. In the end, there was a short recession and $4 trillion dollars in more debt. No job growth. No increase in wealth. No improvements in our society or way of life. Just money for CEO deadbeats.

Just my humble opinion.

How is a spending program any better?

If Bush had spent the $2.4 trillion on buying new cars, the Big Three Auto Makers could give away a $17,666 dollar car to every taxpayer in America. But, it would take them about 11 years to make and deliver the cars. And, the government wouldn't be $4 trillion in debt over an alleged $2.4 trillion "economic stimulus package."

So we could have metered out $218 billion in more spending per year under Bush. And, we could have made sure the money was spent in America on American jobs and American goods.

Yes, we would have still gone in debt. But, only $2.4 billion as promised. And, that would have been at a controlled rate that could be stopped or sped up as needed.

How did we monitor the tax cuts and the economic "stimulus" from them? We didn't. Bush especially didn't.

It's better that we use economic stimulus tools that resemble a hammer and saw instead of tools that resemble the casting of bread onto water.