Can we learn from this in Arizona?

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by David Safier

Stimulus
It looks like the country
isn't overly fond of the Republicans' continued obstruction of the stimulus bill. People want the money out there stimulating the economy, and they want it now.

Is there a budget-related lesson to be learned here in Arizona? The Republicans competed their budget hatchet job for this fiscal year, and they're getting ready to offer us more of the same for the next.

Maybe Arizonans aren't happy with all this cutting, especially with Republicans insisting all other options are off the table. And if the Republicans refuse some of the stimulus money . . .

If we took the pulse of Arizona's voters, I have a feeling we'd see a bit of a drop in popularity of the ruling party since the election.

4 COMMENTS

  1. I called Jan Brewer’s office today to see where they stood on the stimulus, as other Republican governors are supporting it.
    I asked whether they supported the stimulus, and the woman on the phone said that a ton of people were calling asking them to take the money. I said that is not what I asked, and I said “do you think you should get stimulus money?” There was silence, then the lady said, “you can e-mail…”
    We are dealing with a a clowncar who can’t remember which clown is the happy one and which one is the sad one.

  2. “Government can only spend that which it has taken from private individuals and businesses.”

    You are clearly ignorant of the international monetary system. Bush Republicans borrowed almost $6 trillion dollars from foreign investors to pay for the Bush tax cuts to the wealthy and corporations(51% of the federal deficit), two wars and the recent TARP bailout, not including additional federal spending. It was all on the government’s credit card – not paid for by taxes.

    It’s called deficit spending, which is not always a bad thing (the deficit as a percentage of GNP was over 100% at the height of World War II). The federal deficit spending during the Depression and World War II was used on infrastructure and industries which led to the economic growth that followed in the post-war era.

    The Bush tax cuts produced the weakest recovery of any post-recession since World War II, and produced the fewest number of jobs of any administration since Herbert Hoover. Why? Because the wealthy simply accumulated wealth, and corporations accumulated profits. Money was not spent on goods and services and expanding businesses which creates economic expansion. (Your example of putting money into your bank account is exactly what is not needed right now).

    When the private sector is no longer willing or capable of injecting capital into the financial system (due to panic out of uncertainty of risk, or actual insolvency), the government must inject capital into the financial system to instill confidence in the financial system; it is a necessary prerequisite to the free flow of capital and resulting expansion. Only the government has the necessary resources to accomplish this.

    We are currently in the early stages of deflation. If it is not arrested immeidately we risk a deflationary spiral that will be difficult to escape, and can lead to a prolonged and severe depression.

    Would that make you happy?

  3. I would like to point that all anybody who believes in HR 1 style stimulus needs to do is pay for the construction of a house or commercial building. They don’t need to wait for the US Government to do it.

    I would think that the average American driving down any main street in Phoenix would realize that there are many many too many residential houses that are empty and quite a few commercial buildings that are empty. Both the houses and commercial buildings that are empty created employment during their construction but what is there is no need for them once they have been constructed?

    I’ll go with the idea that most Americans are fond of having a positive bank balance. That isn’t likely if government spending occurs. Government can only spend that which it has taken from private individuals and businesses.

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