‘Puter’s fairly certain that the House’s passed stimulus package is going to harm more than help, for any number of reasons, not least of which is that Republicans have thus far, to a man (person, if you must), refused to support it.
‘Puter’s not an economist, but does have some common sense. If spending borrowed dollars is what got us all into this mess, then spending borrowed dollars on an even bigger scale seems more likely than not to multiply our difficulties.
The Democrats claim that about one-third of the package is tax relief, but it’s really just more thinly disguised welfare spending. The increase to the EITC gives people who pay no income tax more income tax dollars. The $500/$1,000 “rebates” are going to everyone, regardless of taxes paid. How is giving money from people who pay taxes to those who pay nothing supposed to stimulate spending by those that actually have money? It certainly makes ‘Puter think the government’s finally gone around the bend for good. If you want people, including particularly the working poor, to get money quickly, cancel the social security and Medicare taxes. Everybody gets more money, right away, and the government doesn’t have to do much of anything.
And the spending portion of the bill is not even that great. Much of the outlays are for education, unemployment, government-paid health care and the like. None of this stimulates makers. It’s direct payment to takers. This sort of spending is appropriate in an omnibus appropriations bill (assuming you are of a liberal Democrat bet), but it is exactly wrong if your intent is to stimulate the economy. None of the recipients of these funds have a positive, direct impact on the economy.
And the infrastructure spending portion is too slow to roll out, even though our infrastructure clearly needs work.
Here’s hoping between now and the time the Senate gets done with this monster spending bill, it gets significantly better.