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Wednesday, January 30, 2008

Walter Williams Debunks the Stimulus Package

So clearly that a liberal should understand.

There are three ways government can get the money for a stimulus package. It can tax, borrow or inflate the currency by printing money. If government taxes to hand out money, one person is stimulated at the expense of another who pays the tax, who is unstimulated and has less money to spend. If government borrows the money, it’s the same story. This time the unstimulated person is the lender who has less money to spend. If government prints money, creditors, and then everyone else, are unstimulated. As my colleague Russell Roberts said in a NPR broadcast, “It’s like taking a bucket of water from the deep end of a pool and dumping it into the shallow end. Funny thing—the water in the shallow end doesn’t get any deeper.”

Politicians are too stupid to manage the economy.  I doubt they can manage their own finances. 

Walter Williams says the best stimulus would be making the 2003 tax cuts permanent.  It would he said:

According to economists Tracy Foertsch and Ralph Rector, making the 2003 tax cuts permanent will annually add $76 billion to the GDP, create 709,000 jobs and add $200 billion to personal income.

But then they won’t do that because it’s doesn’t fit Congress’s temperament of taxing anything that moves and subsidizing anything that doesn’t.

Comments

As if passing a so-called “economic stimulus package” which will have little or no effect on economic growth isn’t bad enough, never mind its obvious effect on the federal budget deficit, Fox News reports that one of the little known provisions of the House-passed bill makes certain illegal aliens eligible for so-called “tax rebates.”

WASHINGTON — The $146 billion stimulus package intended to jolt the economy by giving taxpayers rebates up to $1,200 includes cash returns for illegal immigrants who pay taxes.

Under the plan passed by the House, illegal immigrants who qualify as “resident aliens” and earned a minimum of $3,000 would be eligible for rebates of between $300-$600, FOX News has learned.

Only those illegals who have been assigned an Individual Tax Identification Number that allows them to file income taxes would be eligible. Resident aliens are defined as people who spend a “substantial” amount of time in the U.S. and have not been deported.


“Poverty of goods is easily cured; poverty of the mind is irreparable.”

Bat One on January 30, 2008 at 09:30 am
Avatar for Mittens McHuckniani

Funny thing—the water in the shallow end doesn’t get any deeper

Really? Golly gee, who woulda thunk? If I was a conservative, I woulda known that.

Mittens McHuckniani on January 30, 2008 at 11:32 am

A true economic stimulus plan would make the Bush tax cuts permanent, eliminate the “death tax” permanently along with the tax on dividend income, reduce the tax on capital gains to 12.5% after indexing capital gains to inflation, and reduce the tax on business income and the depreciation schedule as currently proposed.

After that, the next goal should be real Medicare and Social Security reform while we have the time and the resources to do so.


“Poverty of goods is easily cured; poverty of the mind is irreparable.”

Bat One on January 30, 2008 at 11:06 pm
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