Reply To: Nancy Pelosi is Right – The Deal is No Deal: Make the Tax-Cuts Permanent

Actually, it did. The economy has been growing since June 2009.

It didn’t. Of course the GDP grew – more government spending equals a higher GDP. I’m talking about actual economic growth not induced growth. With stimuluses of such magnitude,we should hit an all-time high combined with consumption and investment. If you want to declare Keynesian dead (and that means the liberal fiscal policy) because it’s an indication of severe complete crowding out and lagging, fine. I gave them the benefit of doubt and placed it in fear. I blamed fear for the future as the indicator for bringing down the economy and keeping it down. That is supported by the fact that companies are borrowing to stash away the money. Make America a better business environment and it will change.

The healthcare bill was basically a bailout of the health insurance industry. That isn’t anti-business. Neither was the bailout of the auto industry.

Bailouts are not pro-business – they’re anti-business. It means more corporation and capital tax (to pay for it), more regulation (well, you’re indebted!) and higher interest rates (deficit). A business that fails should go bankrupt. That will give other (small) businesses a chance and remember, capitalism is the way to go! Only an entirely free market can create competition and confidence.

No, it isn’t. Interest rates remain at historic lows. There is no inflation except for a few cartel-controlled commodities such as petroleum; the problem in much of the US is DEflation. We actually need some inflation to get homeowners out from under water and the deficit can help.

It isn’t? for the first time in history people are talking about a government default. Interest rates are lower than it should be because the feds are trying to create a monetary policy. Yes, Ben Bernanke fears a deflation but that’s not because of the dollar, it’s because of the economy. A dead economy leads to deflation but high debt leads to high interest rates. It’s common sense: If more people (or government)want loans, the stakes are higher! If China, the other lenders and bond investors will have less confidence in the US economy (and they will if things continue like this) – it will go up faster than a space shuttle.

There has yet to be such a tax cut.

Well, it just makes sense. That’s the reason why communism and socialism failed. Additionally, I gave you the numbers – look at them. The Bush tax cuts nearly generated the revenue it had before the tax cuts went into effect (while the economy increased immensely); had the banking (housing) crisis not occurred (because of the Carter/Clinton mortgage doctrine), it would’ve already made up the loss. That just shows that less taxes means a higher GDP which eventually results in more tax revenue.

This exposes your ignorance on economics. “Might” spend it??? Have you ever been unemployed, with no savings? The tax cuts to businesses and zillionaires will get stashed away (as you mention, companies are hoarding cash) while tax cuts to the poor and unemployment insurance gets spent, increasing consumer demand and giving businesses a reason to produce.

As I’ve indicated, an extension of the unemployment insurance (will get people to stay unemployed in addition to work off-the-books and) will just create a bigger underground economy. And yes, say they’ll spend it, but it still isn’t a direct effect on the GDP.

Charlie, I’ve put much in a nutshell. Obviously your (non-) questions were just some off-topic throw-balls to distract, that proves my point that it’s either tax cuts permanently extended or nothing.