Stirling has pretty much been right about this one all along: Obama comes from the Chicago School and to the Chicago School tax cuts are everything. Here's Krugman:
But only about 60 percent of the Obama plan consists of public spending. The rest consists of tax cuts — and many economists are skeptical about how much these tax cuts, especially the tax breaks for business, will actually do to boost spending. (A number of Senate Democrats apparently share these doubts.) Howard Gleckman of the nonpartisan Tax Policy Center summed it up in the title of a recent blog posting: “lots of buck, not much bang.”
The bottom line is that the Obama plan is unlikely to close more than half of the looming output gap, and could easily end up doing less than a third of the job.
Governing from the Center-Right--aka 'triangulation'--might well doom Obama.
Couple of other newsworthy items before I call it a night:
Unemployment hits 7.2%. Now, we all know that's not the U6 number, but that's still high. And I still think it will hit 10% before year end.
Furthermore, Senate Democrats are, well, perhaps unhappy isn't the best word but it will do, with Obama's 'Stimulus Plan.' Heck, his honeymoon might be shorter than Bill Clinton's!
And Bloomberg News skewers Henry Paulson. It's a beauty. Well worth the read.
Lastly, South Korea has arrested a financial blogger for his, erm, blogging bad news. Good thing I am not there anymore.
Enjoy all this good news, I'll leave you with some new photos of the night food market on Lebuh Chulia here in Penang.
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Comments: 36
You are correct, but Obama and the Democrats have a chance, a once in a generation chance to right the ship of state. And yet Obama caters to the Republicans? Why? He doesn't need them. He's got 59 seats in the Senate and a larger majority than the Republicans ever had in the House. I'm so dismayed. "Yes we can," he used to say. It's looking more and more like, "no, we won't," now.
http://tntalk.wordpress.com/2008/11/23/us-unemployment-rate-truth-in-statistics/
It's important and sad to note that the Official Unemployment statistics only reflect those person actually collecting benefits. Those who do not qualify for benefits or who have exhausted theirs are still unemployed, but not included in the statistics.
sometimes 14%, yes ag area.
If any of you really want to read the 2008 budget and comment on U.S.A. economy, social issues, health care, environment. . . . there is a website for just this purpose.
U.S.2008 Budget
Official U.S. 2008 Budget, you can download it and look for items to cut. . .
Here is the website for comments from ordinary citizens. . . . what an idea, can you imagine something like this from Bush/Cheny Admin. . .
What do you want to change?
Interesting post Sean, thanks
Sean Paul- what do they use all those buckets for in the night food market?
I am not very sure that $ 1,000 tax rebate is a tax cut. I feel it more as a "tax transfer" as it seems that the dollar is losing support, a depreciation which could be considered as a "tax on imports".
For the time being, we should avoid confusing the need of people's unity (Republican AND Democrats) and something to come within some future.
I prefer to wait on this next future before trying to guess about what it could be: Asking the Congress to accept huge investments and some tax relieves has nothing to do with the application.
There are many ways to support the actual lousy economy which has its roots in an unexpected long war, with the idea to support the war with real estate investments which went bad due to a too long war while, in order to support personal feelings and "saving" some money (due to the war failure) the restrictions on R&D, have been the roots of this 4th financial crisis in 8 years.
Economy is very relative and respond to very personal feelings and choices: As you use the bucket example, I will take profit to recenter the question:
From the lake to the oasis, hiking through the desert, when has the water the most and least values?
The least values when leaving the lake and when reaching the oasis.
The most value depends on the strength and resistance of the hiker.
and next question:
when is the water asking for a bigger effort than the relief it provides?
60% for long term investments can be compared in some way to practically 6 years of war for oil fields. With a small difference: infrastructures are inland while wars are far away.
On the other hand repairing infrastructures is a long term investment which provides jobs to the blue collar middle class.
It's going to get worse before it gets any better.
Each and every one of us has the right, and the RESPONSIBILITY to contribute to, support and guide the decisions that are being made. How many of us have a plan to share with our new leadership team?
All we have to do is write it out and mail it in. DO SOMETHING.
I just wanted to stop by since I am finally going through what is now listed as under 5,100 pieces of gather new mail that is sitting in my inbox on here.
With that mentioned I just came across either a mailing from you yourself, or someone else brought this piece to my attention. You or they felt that your creation should be shared with the gather community, which I am very glad that it was passed on to me to view. So I wanted to say Thank you for taking the time out of your busy day to publish it here on gather for us to all view. :o)
As well before I leave you I wanted to wish you a Happy New Year... in 2009 :o)
Anyway, Obama's big spending disaster is going to pass. Krugman should be pleased that at least Obama is following his basic tenets of using the government to improve the economy. Maybe the Nobel committee will give him a prize too.