January 22, 2008

Bush proposes plan, markets react badly

It's not all that surprising, given how stupid Bush's plan is, that the futures on all the major indices are way down right now ahead of tomorrow's trading. Overnight, oil closed around $88 which is great but a definite sign that markets are counting on recession. And joblessness. Which Bush's plan will do nothing to fix.

The reality is that giving myself a tax cut isn't going to do anything other than exacerbate the trade deficit. If one really wanted to jump in and save the economy, implementing the cap gains tax increase we've talked about would be a great first step in stabilizing prices and cutting of rampant speculation, without inefficient price controls. Then, increase taxes dramatically on corporations that have a wide disparity between those at the lowest end of the wage pool and those at the top. Sure, it'll cut corporate tax income a little, but it will more than make up for it with an increase in real wages (and the taxes paid on wages) and spur a consumer led economic boom.

Finally, any program that involves deficits MUST be used for things here. Build schools. Build roads. All of that puts real money into the economy and produces things we desperately need to keep the economy going.

But Republicans won't be interested in that. The only thing they seem to be good at is collapsing the economy.

Posted by mcblogger at January 22, 2008 12:02 AM

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