The economy is sinking. Jobs lost in 2008: 2.5 million. Unemployment rose in 2008 to 7.2% . In January, 17,000 jobs were lost. Poof. Gone.
So last week, the House of Representatives passed an $812 billion dollar economic stimulus bill. The Democrats added some tax cuts to appease the Republicans who still think tax cuts stimulate the economy, and to appease the President who wants it to be a bipartisan effort. So now it’s a mix of tax cuts and government spending to spur the economy.
Wahoo! It Passed.
But it got ZERO Republican votes. Boo!
It seems to the republicans, there weren’t enough tax cuts. Hello? Didn’t we try this already? Remember Bushie’s tax cuts? The voo-doo economics was that if you let the tax payers keep their money; they will be the best ones to decide how to spend their money and thus boost the economy. Too bad they spent their money at Wal-Mart which buys their goods from China. So the tax cuts helped China. Yay!
Also, they cut capital gains taxes which did encourage more play in the stock market, which backfired, apparently. Look where the market is now. To put some historical data into it: the Dow Jones Industrial Average on September 11, 2001 was 8235.21. On January 30th 2008, the index closed at 8000.86. Between those times, the index peaked at 14,000 in October 2007. Guess what they were trading on during that time? No good mortgage securities. So between 2001 and now our economy was based on imaginary wealth.
So here is my advice to Republicans: YOU LOST. Get over it, and put on your big girl/boy pants.
And to democrats, remember YOU WON. So quit trying to appease the republicans by putting worthless tax cuts in the legislation, and be a little more inventive. Be tough. It’s okay to put provisions in it that are a little protectionist. Like demand that our new high speed rail system is made from steel made in America. Lincoln did that with the first Transcontinental railroad was built, even though Europe was better at smelting steel at the time. It was tough, but America grew and prospered.
I’d be lying if I said I didn’t want a tax cut. But really, I’d just spend it on products made in China and India and Pakistan, because nothing is made in America anymore. It is time for us to make things in America, again. It is obvious that we can’t depend on the private sector to make that happen. We tried giving them tax cuts, but they used that to hire China.
So let’s try it again, the right way. Let’s rebuild America.