Nov 06 2008
Have They Been Listening To Us?
This is unbelievable, but it is good news:
WASHINGTON - House Speaker Nancy Pelosi told the Wall Street Journal that she is considering a two-staged effort to boost the shaky U.S. economy, arguing for action now on a stimulus package of $60 billion to $100 billion, followed early next year by a companion measure that would include a “permanent tax cut.”
In an interview Thursday morning, the California Democrat pointed to weakness in the nation’s jobs market, and urged the White House, long skeptical of Democratic-led stimulus efforts, to work with Congress in the waning days of President Bush’s term.
“Let’s see if we can’t do something, working together now, that gives us a two month jump,” she said. She said any measure enacted in a lame-duck session of Congress this month would effectively be a downpayment on additional measures enacted later. “We’ll take the longer view as soon as we take over in January.”
Ms. Pelosi said she doesn’t favor a capital gains tax cut, as pushed by congressional Republicans. But she did say the “second piece” of the Democratic stimulus agenda should include a tax cut.
The speaker said she prefers a direct tax cut over tax rebate like the one pushed by President George W. Bush a year ago. The speaker said a direct tax cut can have a more immediate impact on the economy, especially if the government adjusts tax withholding tables to speed dollars into worker paychecks. “The impact is faster than a rebate, which takes a few months get into people’s hands,” she said in an interview.
~ From Thursday’s Wall Street Journal
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OK so far. Now, to paraphrase Roland, we have to watch what they DO.
At my retirement (from UNO) in 1999, I posed this simple math problem to my (our) grandchildren. I even used a double digit illustration to challenge their math skills…along with their deductive reasoning abilities: Twenty seven crows were sitting on a telephone line when a tractor came down the road. Nineteen of the crows decided to leave their perch and flew away…how many remained? The oldest (9) paused and looked at the younger ones (knowingly giving them opportunity to demonstrate their math skills). Almost in unison they replied 8. I complimented them on their story-problem solving abilities and then cautioned them regarding “confirmation error”. Then I launched into a discourse about the critical distinction between “deciding & doing”. Our oldest voted for the 1st time in the recent election…e-mailed me and said she hoped the candidates were aware of the difference between saying and doing. A lenghthy point but a worthwhille lesson. I’m uncertain if our politicians know this distinction!
The current financial crisis appears to be different than previous ones. Just one major difference (such as the large quantity of institutional cash sitting on the sidelines waiting for signs of stability) can have such a significant impact on the market slump duration and speed of rebound.
I can’t recall the level of infatuation with a new president ever being this high (even with JFK or RR). Will Obama have FDR like capabilities in soothing public concerns while the media speads gloom and doom? Since most of the media appears to be in Obama’s camp will they mitigate their depressing ways to cut him some slack?
While a return to $60 oil will have a tremendous impact on the economy will it cause the public to return to old energy wasting ways?
Guess that I have far more questions than answers. I am, however, convinced that the US will benefit tremendously from a major movement toward alternative energies.
Jim Benz