Wednesday, February 18, 2009

Republicans Seemed to Have Forgotten Their Past 8 Year Mantra: "Deficits Don't Matter."

Ann Pettifor, the author of “Debtonation - The Coming First World Debt Crisis,” wrote this simple reminder about the last eight irresponsible years and bottom up stimulus.
These points are truly rich coming from the Republicans. Readers no doubt know that during the Bush-Cheney years the US national debt doubled from $5,700bn in 2001 to $10,700bn today. Others may recollect that Mr. Cheney said in 2001: "Reagan proved that deficits don't matter."So let's not hear any more from Republicans about deficits mattering or about 'generational theft.'
And on “bottom up” economics, pushed by the Democrats:

The workers get pay checks. They use the income to pay taxes - direct to the US government. So immediately the government can use these tax revenues to fix the budget. Then workers purchase goods and services - boosting the economy. Companies hire more workers to deal with demand for materials from stimulus sponsored programs. More employed workers equals more taxpayers.

Ever-rising tax revenues drop into the Treasury's coffers.

And yet Republicans have made it “complicated” for a reason. Besides defending a failed economic theory, they like to sound like they know what they are talking about.

No comments:

Post a Comment