Just read an interesting post in The New York Times about the dysfunctional and divided Democratic Party. Interesting how the Democrats craft two costly legislative proposals, the stimulus package and health care reform, and run for cover by leaving Mr. Obama out in the cold. Maybe if they started early arguing from the strength of their convictions and the belief in the benefits of their policies, they would convince Americans to vote for them.
I don’t see that happening. This is politics and the Democrats have to play the polls.
What would help is if both Republicans and Democrats get of this notion that tax cuts are the only tools for stimulating the economy. Neither party has come up with a credible infrastructure plan that would hire more people while building and repairing roads, bridges, and telecom facilities. What has been proposed and enacted is not enough.
Tax cuts to a wealthy class that does not have a high propensity to consume means more money being placed into the markets. That’s a good thing. Tax cuts for the middle class may not mean much in terms of additional consumption either given the middle class’ increased efforts to deleverage.
No. We need to focus on a real stimulus initiative but unfortunately we may not have the will or stomach for more spending and the borrowing necessary for an infrastructure endeavor.