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I'm just poking fun at Bernanke's promise to drop money from helicopters if necessary. But it appears it's both. Last Friday Bush said that his economic advisors told him the country needed an immediate fiscal stimulus of the order of 1% GDP, and he would try to get Congress to approve a tax rebate of about that size.

We have met the enemy, and he is us — Pogo
by Migeru (migeru at eurotrib dot com) on Tue Jan 22nd, 2008 at 09:18:41 AM EST
[ Parent ]
The really weird thing to me is that Bush seems to be the only one with something close to a clue for a change.  It's still not big enough, and it needs to be combined with government spending.

But our three Democratic champions' proposals for stimulus range from Band-Aid to clueless.  And the Reps are, of course, all out to lunch.

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin

by Drew J Jones (myfriends@thisispancakes.com) on Tue Jan 22nd, 2008 at 09:27:06 AM EST
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Bush didn't write his speech, Bernanke and Paulson did.

We have met the enemy, and he is us — Pogo
by Migeru (migeru at eurotrib dot com) on Tue Jan 22nd, 2008 at 09:30:56 AM EST
[ Parent ]
Yes, but just the same.

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin
by Drew J Jones (myfriends@thisispancakes.com) on Tue Jan 22nd, 2008 at 09:33:15 AM EST
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What do they need? 2% of GDP on public infrastuctural projects?
by Colman (colman at eurotrib.com) on Tue Jan 22nd, 2008 at 09:33:13 AM EST
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The infrastructure projects are necessary anyway, since, as I'm sure redstar can testify to, our infrastructure is such a joke.  Might as well take the opportunity to do them in a recession so that we can keep a base of support for the economy going and avoid a larger jump in unemployment.  The tax rebates aren't a bad idea, assuming they're being directed as I understand (at people making less than $80k or something).

How large it should be is another question that I just don't know the answer to, in all honesty.  What I know is that this will be bigger than the 2001 (.4% contraction) and 1991 (1.3%) recessions.

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin

by Drew J Jones (myfriends@thisispancakes.com) on Tue Jan 22nd, 2008 at 09:38:26 AM EST
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I think tax rebates ARE a bad idea.

Go for infrastructure project, full steam ahead. Refurbish buildings so they become more energy efficient, and you'll win on all counts: you'll find employment in the building industry which is depressed, those people probably WILL spend the money they earn, you'll reduce this frightening energy bill, and make a (however small) dent in global warming.

And because you keep taxing at the same rate, you'll get more of your money back.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi

by Cyrille (cyrillev domain yahoo.fr) on Tue Jan 22nd, 2008 at 09:50:05 AM EST
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That's a great idea, and six or seven months from now, when the economy's digging a giant hole, I'm sure Congress will get around to passing it.  In the meantime, what?

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin
by Drew J Jones (myfriends@thisispancakes.com) on Tue Jan 22nd, 2008 at 09:53:17 AM EST
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Will Bush have to do this by executive order?

We have met the enemy, and he is us — Pogo
by Migeru (migeru at eurotrib dot com) on Tue Jan 22nd, 2008 at 10:02:52 AM EST
[ Parent ]
Do what?

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin
by Drew J Jones (myfriends@thisispancakes.com) on Tue Jan 22nd, 2008 at 10:09:10 AM EST
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Whatever it is that needs done.

We have met the enemy, and he is us — Pogo
by Migeru (migeru at eurotrib dot com) on Tue Jan 22nd, 2008 at 10:09:49 AM EST
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I'm not sure he has the authority to do any of this by executive order (not that it's ever stopped him before).

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin
by Drew J Jones (myfriends@thisispancakes.com) on Tue Jan 22nd, 2008 at 10:16:15 AM EST
[ Parent ]
If the economy is in trouble, then it could theoretically weaken the military.  Since the US is at war, a weakening in the military would be a weakening in overall National Security.  Thus, the economy is a national security matter, and thus the president's unlimited power as commander in chief authorize him to take whatever actions are necessary to address this deep and troubling threat to national security.

Or some might argue.

by Zwackus on Tue Jan 22nd, 2008 at 05:38:52 PM EST
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Well, why would they be quicker to pass anything else? So whatever we come up with, you may answer that Congress will wait until the election's over.

Hang on, there's an idea: haven't we read everywhere that this campaign was the most expensive ever? And contributions are almost all from very rich people, so it won't change their consumption patterns. There you have it, money being poured into the economy!

All you need now is to make the election close enough that the campaign costs 2% of GDP.
Of course, if Republicans win, contributors sure will expect to be paid back in policies. But by then, the seven months will be over and Congress may have passed our initial idea. Neat, isn't it?

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi

by Cyrille (cyrillev domain yahoo.fr) on Tue Jan 22nd, 2008 at 10:08:41 AM EST
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I don't know what you're on about with the campaign, but wiping out the 10% bracket with general agreement in Congress is a lot simpler than setting up a massive program to refurbish buildings for energy efficiency.  That's not to say that the idea doesn't have merit, -- it does -- but you're talking about moving an enormous amount of bureaucracy and dealing with all sorts of fights in Congress.  My point is that they need to be pumping money into consumers' hands now, and then move to public works projects.

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin
by Drew J Jones (myfriends@thisispancakes.com) on Tue Jan 22nd, 2008 at 10:15:22 AM EST
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It seems to me that taxes are already way too low in the US.
Also, tax cuts hit the wrong targets (if you don't have a job you probably don't pay income taxes). And they don't have much of an immediate effect either -it comes with future earnings.

But this guy may explain it better.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi

by Cyrille (cyrillev domain yahoo.fr) on Tue Jan 22nd, 2008 at 10:28:31 AM EST
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Does the US have any leeway for increased government spending?
by Colman (colman at eurotrib.com) on Tue Jan 22nd, 2008 at 09:34:23 AM EST
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OHhh, some $600 billion earmarked for weapons.

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin
by Crazy Horse on Tue Jan 22nd, 2008 at 09:38:13 AM EST
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No, seriously.

The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt ät gmail dotcom) on Tue Jan 22nd, 2008 at 09:46:42 AM EST
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Well it hasn't stopped them from running up 7 trillion so far why on earth would you think they need some sort of 'leeway'?

Its call a printing press and they will use it! (21stC digital one mind)

by acrowe on Tue Jan 22nd, 2008 at 05:22:55 PM EST
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Yes, assuming it's not run by idiots, but that's quite an assumption, as you know.  The idea has got to be to give the economy a series of shots in the arm until Wall Street sorts itself out and the private sector comes back.

I'd prefer it be done with fiscal policy, so that we could get some much-needed work done.  Handing it over to the Fed may well result is just another bubble somewhere.

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin

by Drew J Jones (myfriends@thisispancakes.com) on Tue Jan 22nd, 2008 at 09:41:58 AM EST
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