RealLindaL wrote: zsomething wrote:I almost don't blame Republicans for trying to get away with this stuff, though... it's probably irresistible when you know your voting base are a bunch of brainwashed dullards who believe whatever you tell them and don't understand how a goddamned thing actually works. We need to quit calling it "left and right" and just call it "smart and stupid," because it's becoming increasingly obvious that that's what it is...
I've never wanted to think this way but it's becoming very difficult not to.
It's really hard not to, especially when they do stuff like this...
https://www.nytimes.com/2018/02/06/us/politics/republican-fiscal-stimulus-deficits-inflation.html?smid=tw-share
WASHINGTON — Republicans are pouring government stimulus into a steadily strengthening economy, adding economic fuel at a moment when unemployment is at a 16-year low and wages are beginning to rise, a combination that is stoking fears of higher inflation and ballooning budget deficits.
The $1.5 trillion tax cut that President Trump signed into law late last year, combined with a looming agreement to increase federal spending by hundreds of billions of dollars, would deliver a larger short-term fiscal boost over than President Barack Obama and Democrats packed into their $835 billion stimulus package in the Great Recession.
The administration is also expected to soon roll out its $1.5 trillion infrastructure package, which would include $200 billion in new federal spending, offset by unspecified cuts elsewhere.
The question is how much added fuel is good for the economy.
Fears that the extra economic boost could spark faster inflation and prompt the Federal Reserve to accelerate the pace of interest rate increases appear to be at least partially driving the stock sell-off that has rattled markets over the past several days. Higher interest rates would raise federal borrowing costs as the United States continues to borrow heavily — the national debt has topped $20 trillion and annual deficits are creeping up toward $1 trillion. Treasury officials said last week that the United States will need to borrow $441 billion in privately held debt this quarter, the largest sum since 2010, when the economy was emerging from the worst downturn since the Great Depression.
When Obama spent what he did he was (a) paying off Bush's wars that didn't get figured into Bush's budget, and (b) investing to get us out of a recession... which he did, creating the job growth we're still enjoying now (although this year under Trump was the lowest job growth in seven years).
But now Republicans want to spend
even more than Obama did, while the economy's doing well! They're
taxing less and
spending more. He wants to buy a bunch of stuff while still giving a gift to the richest people, who don't even
need more, so, he blows up the debt. Who the hell builds debt in prosperous times? That's when you pay it down!
The people getting the most benefit from Trump's tax cuts already have more money than they could ever spend... they just collect it like stamps, to see who has the most, like a game. No multi-billionaire goes, "You know, I'd create more jobs if only I had more money." Middle class consumers are the job-creators, anyway... if you let the middle class have more money, they buy more products, and the rich open more factories to meet the demand. It's 8th grade economics, but Trump has people fooled with this idea that the wealthy don't have enough, and that they'll just create new jobs for the hell of it. Without demand, there's no incentive. And without the middle class having more money, there's less demand.
This kind of thing is how Trump bankrupted casinos. Which is a hard thing to do.
The 2009 stimulus package was passed when the unemployment rate was almost twice as high as it is today, and the national debt was half what it is now. At that time, Republicans called it a dangerous borrowing spree. “This bill sends us on a worldwide borrowing binge,” Representative Paul D. Ryan of Wisconsin, now the House speaker, said in a floor debate in 2009. “We’re going to go out and borrow four times as much money this year than we ever have in the history of this country in a single year. This is not just a road to stagnation, it is a road to stagflation.”
Fiscal hawks say that assessment is more applicable to the economy today.
“We have a growing economy, the labor market’s tight, we don’t have a lot of idle resources,” said Matthew Mitchell, the director of the Project for the Study of American Capitalism at the Mercatus Center at George Mason University. “Basically, the very best argument for Keynesian economics doesn’t apply now. So it really is the time to be austere.”
While divided government in the last six years of Mr. Obama’s term produced constraints on spending, Mr. Mitchell noted, Republican control under Mr. Trump appears to be ripping them up.