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Durbin Gets a Clue

Michael G. Franc at The Corner notes that Senator Dick Durbin (D-Illinois, Party Whip) has made an astute observation about the efficacy of stimulus plans versus tax cuts:

"The 'one-shot' check in the mail didn't work, didn't inspire people to spend. They said 'we better sock that away because it's the only thing coming. Now the only question is, whatever we do on taxes, particularly for working families, should have some predictability -- 'Oh we're going to get a check in this paycheck, and maybe the next one too. Maybe we'll think about making a purchase that we hadn't thought about.'"

I'll give Durbin credit for getting close to the correct answer and for making a nice analogy: a tax reduction is in effect a "check in a check". However, when taxpayers choose to reduce debt (and personal risk) instead of spending the money we have yet another example of why the Keynesian approach so embraced by liberals constantly fails. Taxpayers inherently trust a tax cut more than a one time stimulus payment in the same way a politician understands who their real supporters are versus those trying to get on the bandwagon and curry favor. Those who give early and often comprise the politician's dependable base, those who give after the result are suspect and worthy of doubt. (Why this simple concept, well understood by Democrats, is not part of their policy says a lot about their intellectual dishonesty and utter baseness on the most important issue of the day, tax policy).

Now the challenge becomes whether Democrats will agree to marry Durbin's epiphany to the ugly in-law that liberals love to hate: the high wage earner. This particular individual brings a lot of money to the "check in a check" concept but never seems to fit in at the Democrat "working family" dinner table.

Conservative Republicans and recalcitrant Democrats have recognized since 1982 that sometimes an arranged marriage is often necessary to bring about the union of "working family" with "high wage earner" in a highly politicized and crisis driven moment such as we live in today. The success or failure of this marriage may mean the difference between a one year recession and a 1970's style economic decline that resembles death by a thousand cuts.


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Comments (3)

Looks like death by a thous... (Below threshold)
MPR:

Looks like death by a thousand cuts with Obamalala's pathetic lack of leadership on display here with little George Stepuponaboxanapolis. The skin will be coming off the ass of everyone that voted for Chief La La Land. *

In an interview on ABC's "This Week," President-elect Obama is warning that his campaign promises will take longer than he expected to carry out, and that Americans will face more of a burden than many have realized.

"I'm focused on a pretty heavy lift, which is making sure we get that reinvestment and recovery package in place," Obama said.

The interview with George Stephanopoulos, Obama's first since returning to Washington as presisdent-elect last weekend, was taped Saturday at the Newseum, where "This Week" has its studio, and will air on Sunday.

"George, I want to be realistic here: Not everything that we talked about during the campaign are we going to be able to do on the pace we had hoped," Obama said in brief excerpts released by ABC.

Obama also hinted at future tax increases and spending cuts.

"Everybody's going to have to give," Obama said. "Everybody's going to have to have some skin in the game."

"Everybody's goin... (Below threshold)
hcddbz:
"Everybody's going to have to give," Obama said. "Everybody's going to have to have some skin in the game."

I thought only 5% had to give and 95% were going to get.

BTW seems BHO has admitted that closing GITMO is going to harder than he thought.

It really sad when HOPE and CHANGE meets reality.

"It really sad when HOPE an... (Below threshold)
Dave Noble:

"It really sad when HOPE and CHANGE meets reality."

Despite the gut level of appeal of that piece of sarcasm, the reality is that hope and change always meet reality for politicians of all political persuasions.

MPR,

Stepuponaboxanapolis, Obamalala, Chief La La Land - I remember that shit, we used to do it in junior high. Give someone a silly name or make fun of them for being short. What does MPR stand for "More Puerile Ridicule" or "Man Pissing up a Rope" ?




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