Tuesday, July 7, 2009

Regarding excess

To those who think the public mourning for Michael Jackson is excessive, let me say two words:

Ronald Reagan.

.....

The money from the Obama stimulus package finally is finding its way into the economy, and some economists are saying that it won't be enough. It won't, but don't hold your breath while waiting for more. It seems that a substantial majority of Democrats in the Senate actually are Republicans, while a dozen or so actually are Whigs. As for those who nominally are Republicans, well... Does anybody remember a guy named Mussolini?

I'm too lazy to look up the specific posts, but I'm sure that when the stimulus was under discussion last year I was pushing direct aid to the states. The states, remember, tend to have balanced budget provisions in their constitutions, and when a whopping economic meltdown comes along and tax revenues are way down, the states have to enact whopping budget cuts.

Those who worry that the current stimulus spending is inflationary might bear in mind that cuts in state spending significantly outweigh the increase in federal spending. The overall impact of combined government spending right now is deflationary. Lost decade, anyone?

The chance for another stimulus bill right now is nil, but just in case somebody in Washington decides to act rationally, let me reiterate: give the goddamned money to the states, to restore the jobs and programs they're cutting even as we speak. Money used to restore cuts gets into the economy a lot more efficiently than money for new spending.

1 comment:

sealharvey said...

I'm glad your here Vic because I gave up on politics. How do you figure them out?

Thanks,

Rich