The Obama speech

January 23, 2009


This makes sense:

Many are urging a massive increase in government spending coupled with tax rebates as a way to jump start the economy. But the economy is not stagnant because of a lack of spending. The economy is stagnant because of a lack of confidence in the future. Government spending on bridges, roads and new schools will stimulate the construction industry. But without confidence, the benefits will not spread to the rest of the economy.

The argument for a massive spending increase presumes that spending is the source of our prosperity. But it is the combination of prudent spending and prudent investment that creates prosperity.


2 Responses to “The Obama speech”

  1. superdave524 Says:

    I thought Obama’s speech was wonderful. I also liked some of the ideas in the Forbes article, but the ideas weren’t a panacea. Eliminating corporate welfare sounds great, but good luck getting that done. Massive corporate welfare in the name of bailing out essential industries can’t really be a good idea in the long-run, at least without addressing the mismanagement or other “combination of public and private mistakes” that created the need in the first place. We sneer at the welfare cheat who steals five thousand dollars in AFDC, but shrug our shoulders at the big bank CEO’s who get millions of tax dollars for having done a crappy job.

    I would have welcomed the elimination of business contributions to payroll taxes when I ran a business, but employer collection of the employee’s income tax is a lot less painful to most employees than making them come up with a lump of money in April (ala your Donald Duck tax collection post of a year or so ago). Also, my employees always understood that whether or not I gave them a raise had as much to do with how much money I brought in as it did their performance, so transparency in who actually pays income taxes wasn’t a problem for my office.

  2. John in IL Says:

    I’m not looking for a panacea. I’m looking for better ideas.

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