Economic Stimulus Needed Now!

Brilliant | 8/2/2002 | Brilliant

[Brilliant]

We need a tax cut and an interest rate cut immediately, and no one in Washington seems to notice. Frankly, it is Bush's responsibility to provide leadership. He brilliantly pushed for a tax cut to stimulate the economy back in January, 2001, and he was subsequently proven correct in his assessment. As a result, he avoided a significant recession, ended it early, and put the blame on the Democrats for delaying and reducing the size of the economic stimulus package. Now, however, there is only silence from him. He even echoes Greenspan's claim that the economy is strong. I've got news for you, President Bush: The economy is not strong. We need an immediate interest rate cut--at least 75 basis points immediately, and if it subsequently appears that cut is too much, then Greenspan can roll it back at a later date. Dribbling it out over time in 25 basis point increments, as he normally does, will only ensure that the errors on the side of not cutting enough, which is a sure-fire recipe for a recession. But Bush cannot wait for Greenspan to act or for his interest rate cuts to have effect. He must immediately push for another tax cut. I would suggest a cut in the social security tax through the end of the year, coupled with a transfer of funds from the general budget to compensate the trust fund for the loss of revenue. Better to have a slightly larger deficit than a recession. But if the President does not act immediately, you can figure that we will be in a recession on election day.

[ghostrider]

Cut interest rates to 1.0%. When we get that far gone it is like jumping out of a crashing airplane. You have to do something, but the odds aren't so great that you will land in a haystack.

[Red Jones]

isn't there pressure on to avoid another interest rate cut because america must be an attractive place for investors at a time when our nation is so deep in public & private debt that we are dependent on keeping interest rates high

And you know the tax cut of president bush' was said to be so small that it was 'irrelevant' by the wall street journal.

[Crazymonarch]

Government can collect 1.3 to 1.4 trillion dollars in taxes these taxes are what pays back the Federal Reserve,but the Banks have played some games like the 21 billion dollar derivative market(twice US gdp)that are an inverted pyramid held together by fencing wire and duct tape that could go wrong at any moment thats just one area,too much smoke and mirrors,too much like 1929,there will be some fancy dancing but it will just be pissing in the wind.I think were headed for some serious,serious problems but Im not the expert,you'd have to talk to Mr Rubin and his mates who set all this crap up to fleece us blind.

[gcruse]

Tax cut? Not income taxes. The deficit is too big already. We need government spending cuts and elimination of capital gains taxes to revive the market.

[Austin Willard Wright]

TANSTAFL=There ain't no such thing as a free lunch.

You can't "inflate" your way to prosperity. Greenspan has already tried that repeatedly and look at the mess we're in! The only solution is yet more tax cuts combined with movement toward a balanced budget and spending cuts. This policy worked in 1945 and 1946 (thus spurring the post war prosperity) and it can work now. Your free lunch policy is a ticket for even greater future problems as history has provied.

[Willie Green]

He brilliantly pushed for a tax cut to stimulate the economy back in January, 2001, and he was subsequently proven correct in his assessment.

Nah, the tax cut didn't do much of anything.
The economy just continued to slide into the doldrums while the budget deficit increased.
If we're gonna have deficit spending, the taxpayers oughta get something to show for their money.
We need to stop this absurd shift to a "service" economy.
America needs to reinvigorate its wealth-creating value-added manufacturing sector.
Time to start building infrastructure: We need electric power plants and modern, high-speed mass-transportation such as Maglev and High-Speed Rail.
Desalination plants will help assure fresh water supply in our coastal states that have experienced population growth and drought.
Repairs/upgrades to other infrastructure such as the locks & dams that make our rivers navigable for commerce would also be helpful. Bridges, dams, water treatment systems.... there's plenty of infrastructure to tend to... which would give industry, employment and the economy a shot in the arm.

Good jobs = consumer confidence

Service jobs = the road to serfdom.

[Deuce]

What we need is get the Fedral Reserve OUT of monetary policy, and return to a specie backed Dollar. This would leave interest rates and the value of money in the hands of the market, while leaving the Fed as the court of last resort for the banks. Maynard Keynes is DEAD, long live Milton Freidman!

Federal Reserve completely dismantled is a more consistent recommendation.

Your suggestions are somewhat contradictory in that a.) lender of last resort is somewhat incompatible with a gold standard; and b.) Uncle Miltie IS NOT in favor of a specie backed dollar. (He must still be pissed off that Alan "Gold and Economic Freedom" Greenspan got the job of Grand Poohbah of Fiat over him)

[lewislynn]

Economic Stimulus Needed Now!

NO!...I can't handle the work load I have now. I'm scheduling jobs right now for NEXT summer.