The politics of an economic nightmare

[nebula]

Source: Salon.com

The politics of an economic nightmare

No U.S. leader wants to admit how bad the damage may get from
the one-two punch of the credit crunch and housing slump.

By Robert B. Reich

Jan. 23, 2008 | A possible economic meltdown is worrisome enough, but a possible meltdown in an election year is downright frightening. For months now, Republicans have been pushing the White House to take some action that looked and sounded big enough to give them some cover if and when things got worse. President Bush has now responded with a stimulus package more than twice as large as the one Bill Clinton briefly entertained at the start of 1993 but couldn't get passed.

Not to be outdone, Democrats want to appear at least as bold, which means they'll suspend pay-go rules and throw fiscal responsibility out the window. In other words, hold your noses, because the "bipartisan" stimulus package that's about to be introduced could be a real stinker, including tax cuts for everyone and everything under the sun -- except, perhaps, for the key group of lower-income Americans. These are the people who don't earn enough to pay much if any income taxes, but who are the most likely to spend whatever extra money they get and therefore are most likely to stimulate the economy. The real behind-the-scenes battle will be over whose constituencies get what tax cuts, and for how long. Don't be surprised if the only thing Congress really stimulates is campaign contributions...(continued)



Read more: http://www.salon.com/opinion/feature/2008/01/23/reich_economy/

[sutz12]

1. Yep, and not a dime for infrastructure or necessities.

:shrug:

[MannyGoldstein]

2. Excellent Article - But Scary As Hell

Thanks for posting.

[MasonJar]

3. Who are they going to borrow this money from? Does anyone think

that most people are sitting around hoping for $500 or $800? All I will do with it is pay down a credit card for things already purchased or give it to one of the Dems for his/her campaign.

[AwesomeFreak]

4. Let's not exaggerate. We are not in an economic "nightmare"

We are not even officially in a recession, and Paul Krugman estimates that a recession would not even be as bad as that of Argentina a few days ago.

[deadlikeme13]

7. Really? Gas, Food, Energy, Goods, Housing Prices up: Jobs, Wages, Raises, Benefits, Hours, Down....

What do you call that?

A: Recession.

[tom_paine]

8. Unfortunately, the Bushies lie like Soviets, so how would we know that we are in a recession?

Answer: We WOULDN'T...at least until, like the Russians, we got it through our thick skulls that Bushies and Commies lie 100% of the time.

And even then, the Bushie Comrades would keep pumping out their phony numbers, inflation is low, unemployment is low, toilet paper production is up 600% and never mind those six-hour lines, Comrades. It's just Liberal Propaganda.

"Officially", the Empire of Bush would have to be in an abject squalor of depression before the Bushies even admitted to the slightest recession in their Official Bushie Comrade Numbers.

[bronxiteforever]

5. K & R-Great Post!

[Yuugal]

6. Lets hope our do-nothing congress

continues to do nothing. The only money they will be giving will goto Richie Rich.