[quote]Gambit_Lost wrote:
Sloth wrote:
Gambit_Lost wrote:
Sloth wrote:
“Notwithstanding reports that all economists are now Keynesians and that we all support a big increase in the burden of
government, we the undersigned do not believe that more government spending is a way to improve economic performance.
More government spending by Hoover and Roosevelt did not pull the United States economy out of the Great Depression in
the 1930s. More government spending did not solve Japan?s ?lost decade? in the 1990s. As such, it is a triumph of hope over
experience to believe that more government spending will help the U.S. today. To improve the economy, policymakers should
focus on reforms that remove impediments to work, saving, investment and production. Lower tax rates and a reduction in the
burden of government are the best ways of using fiscal policy to boost growth.”
This supposedly doesn’t not challenge the size and scope of a big spending government spendulus plan. How? I have no clue.
They’re arguing for greater tax cuts and less spending. Remember the bill is 44% tax cuts. Cato is arguing that that percentage should be greater. Again, this is an argument about composition.
It is so fundamentally different, that the size and scope aren’t remotely the same. The Obama “stimulus” is a Frankenstein’s monster of government spending and government programs. It’s a spendulus program. The undersigned have signed onto the idea of…get this…here we go…shrinking government spending (relative to Obama’s plan. In fact, they don’t want any more government spending), size, and daily intervention, to get out of the way of the free market. Bigger government on one hand. Smaller government on the other. Notice a size difference? Notice a different scope?
The size, scope, direction, is completely different. This isn’t a disagreement about “composition.” It is a fundamental disagreement about the size and scope of government and how it will harm or help our recovery. Conceede the point. If republicans are participating in theater, so are you big government types. If not more so.
You are speaking of the size and scope of government, not the size and scope of the stimulus bill. I’ve been talking of the size and scope of the stimulus bill. There is a difference.
Think of it like two pie charts. Both charts have “STIMULUS $850B” over the top of them. Cato’s pie chart would be comprised primarily of tax cuts, including payroll and capital gains taxes. Obama’s pie chart is only 44% tax cuts, with spending of various sorts covering the rest. BOTH are arguing for action (re: stimulus), but what they’re arguing for is different (re: composition).
There is a major philosophical difference, this is undeniable. Obama believes government has a role to play. Cato believes the role government should play is, essentially, to shrink. But both Cato and Obama have been arguing for government action.
Here’s Cato’s take: http://www.cato.org/pub_display.php?pub_id=9816 [/quote]
The size of the stimulus is the number of words the bill contains. The size that matters is it’s very real impact (possibly permanetly) on the size and scope of government, and it’s interventionism into something beyond it’s control.
One is for government action. That is, government being oh so wise now, can supposedly take control and direct the economy to calm waters. This time, they’ll get it right, by gosh.
One is for getting the government out of the way of free market action.
Even if both pie charts had 850 billion attached to them, one is borrowing and taxing that money to spend as it sees fit. The other is leaving that money with the people and the market. Which one is actually direct governmnet action? Which one is the bigger scope of government action?
Which one is centered around free market action with the government taking a seat on the bench to watch the pros get it done?