Obama moves to "trickle down economics" versus his "flood the basement economics."

Discussion in 'Economy' started by oreo, Mar 18, 2010.

  1. oreo

    oreo Gold Member Supporting Member

    Sep 15, 2008
    Thanks Received:
    Trophy Points:
    rocky mountains
    Obama just signed into legislation the new "hire" bill. 18.5 billion dollars in TAX breaks to business for new hires that have been laid of for at least the last two months. In this bill it includes:

    1. No payroll taxes for the rest of the year for new employees--(that have been laid off for at least the last 2 months.)
    2. Extreme depreciation for new equipment. Money for new equipment is normally depreciated out for many years. If an employer buys new equipment this year--they can depreciate the total cost this year.

    Both of the above are HUGE tax breaks to business in this country.

    FINALLY--& more than a year afterwards Obama has moved to "trickle down economics." This is something he should have done more than one year ago, versus spending 787 BILLION tax dollars-that was loaded with earmarks, & political paybacks. He realises that his "Flood the basement economics" has been a total miserable failure in job creation.

    Now the 18.5 BILLION dollar question, is will this work? The problem in our economy today is there is no demand for goods & services--therefore with no demand for goods & services--employers lay off employees & tuck under with new employees. IOW--they wait it out.

    With the new depreciation schedule--& I hate to tick off liberals this way--(wealthly employers will take full advantage of buying new equipment so that they can depreciate the total cost this year.) This will put out the demand to manufacture equipment & other business needs which will put people back to work.

    Is 18.5 billion too little, too late? Who knows. However, our economy would have been literally going through the roof today--if congress & this administration would have done this over 1 year ago.
  2. mascale

    mascale VIP Member

    Feb 22, 2009
    Thanks Received:
    Trophy Points:
    Buffoons and other Tea Party analysts would look at the $787.0 bil. stimulus of the American Recovery and Reinvestment Act of 2009--about 1.4% of the Total Credit Market Available--and claim that the basement was somehow inundated. That is because they are stupid, hoping only for more-warbucks spending, to get U. S. Nationals, killed in foreign places!

    ARRA is far more "Preservative" of the Ivy League Status Quo, than it is a genuine, immediate stimulus program. "Sticky" and "Gooey," and "Finger-Licking Good," are the better descriptions of what the ARRA was all about. If you already had, then you pretty much got, and even a lot, and more than you had--when compared with everyone else!

    In Vice President Biden's report, elsewhere posted, then $288.0 bil. went to tax relief, most of that happening this year, not last year. No flood happened. $273.0 bil, largely last year spending, went to the cops and the teachers, who helped to cause it all--drawing annual fixed percentage raised pay--and to state government receptionists, aides(?), and other such critical, state and local government employees. No Flood Happened. Then $226.0 bil. was allocated to projects, largely this year. No flood happened.

    Since nothing stimulative happpened, then the Obama Administration went forward this year with more direct, force-feed-the-geese, kinds of tax breaks, and projects spending. That is not entirely designed as a flood. It is the kind of stimulus needed now because the chicken-shit lenders, at the TARP-bailed-out banks, are not extending credit. New Plant investment, creating employment, has to be fiscally created. Obama's Democratic Party has been shrieking, and even among the various Black Organizations.

    So even just today, post-St. Patrick's day-long kinds of flooding, Then Leading Indicators are up for the eleventh straight month. Manufacturing indexes are on the rise again. Instead of a flood effect, with "all" the extra spending: Still there is no inflation. Bags of Goose-Crap, expecting re-flation, are still out sitting on the sandbags, waiting to see if the flood arrrives. So far not much directly stimulative: Has even been expected to happen.

    The 1.4% credit boost of ARRA was set up to prevent the scam of the financial "crisis" from getting out of control.

    As a consequence, the rich Ivy League have made out like bandits, in the current and continuing equity market run-up! The "educated" business and corporation managers, and the brokers and the hedge funds: All decided to set up a panic anyway.

    Now anyone waiting for something else to happen has already been left behind! The only thing left to do: Is to jump in and not get left behind further. More spending is on the way.

    And so now there are expected even several actual measures to actually boost the consumer-level of the U. S. economy, That is the part on which it relies. The Preservatives are not the part on which the U. S. economy relies(?).

    ARRA was not about stimulus at all, at least last year.

    The failure to understand ARRA is all about failing to understand the U. S. Ivy League--abundant even now in the federal capital, where they all probably come from, one way or another!

    This is America! Tens of Millions do routinely: Fail to understand the U. S. Ivy Leage, which thinks it is smart!

    "Crow, James Crow: Shaken, Not Stirred!"
    (Sends squaws in numbers to the lands of many nations! Learn true meaning of metal coins, put into one-arm, Ivy League(?) machines, which does things in threes(?)! Soda-Pop-Flood not even is expected! The Ivy League knows this!)
    Last edited: Mar 18, 2010
  3. Sarah G

    Sarah G When Nothing Goes Right, Go Left Supporting Member

    Mar 4, 2009
    Thanks Received:
    Trophy Points:
    NW Ohio

    Link the story, some of us would rather not hear your version.

Share This Page