OpEdNews Op Eds

When All You Think You Have to Fix the Economy is A Prime Rate Cut and Tax Rebate.... You Better Think Again

By (about the author)     Permalink       (Page 1 of 2 pages)
Related Topic(s): ; ; ; ; ; ; ; ; ; ; (more...) ; ; , Add Tags  (less...) Add to My Group(s)

View Ratings | Rate It

opednews.com

Become a Fan
  (287 fans)

Psychologist Abraham Maslow had a saying, "When all you have is a hammer, everything is a nail."

For American economists and politicians, all they have are two things-- prime rate cuts and tax cuts-- so it seems. And oh yes, a horrendous, record setting economic disaster that many are already saying has set off recession, not to mention losses of of millions of homes by default and losses of tens of billions of dollars.

So how will a tax break plan help? How will rate cuts help?

The way the Dems, GOP and Bush are talking, using a general tax break, makes no sense.

A lot of people will buy imported crap or pay off credit cards.

One polls shows that 58% will use it to pay off debt, 25% will save it and 17% will spend it.



This is stupid and it won't work.

Then we have our one button Ph.D. Bernanke. Poor guy. He has a job where all he can do is push the button to raise or lower the prime rate. Fact is, with all the other economic factors influencing the economy, this has a smaller and smaller real effect. Sure, it generates a one day blip up in the DOW. But it also decreases foreign incentive to invest and probably contributes to the decrease in the value of the dollar. Import prices (read that computers, Walmart stuff, clothing, shoes, toys) go up.

There's no doubt that Bernanke will lower the rates soon, and probably a few more times. It's like crack cocaine to the investment world-- a quick fix, big high, but short lasting. It is an act of desperation by a man attributed with a lot of power who really doesn't have that much power. I was going to say it's not his fault, but as the "czar" of the economy, it is his job to come up with tools for affecting and influencing the economy-- to provide options and solutions. Sticking with the same failed tool-- the one Greenspan used to take us into this economic disaster (only to sign up with someone who profited enormously from it)-- is to ride the same failure train down into further disaster.

It's understandable and reasonable that the leaders of congress and Dubya want to do something-- to come up with an economic stimulus plan-- or something to slow or stop the descent into further economic trouble, or should I say disaster?

But it is irresponsible to just throw out tax rebates-- flagrantly, stupidly, brazenly pandering to the easy fix. It is shameful. Of course, Bush, the worst president in history, is too dumb to come up with anything intelligent, and too bad a leader to have any advisors who will give him reasonable counsel-- or too bad a leader to listen to any who provide reasonable counsel. He just wants to give out money to consumers, "so they will spend it."

That leaves the congress to prevent Bush from throwing away hundreds of billions more dollars. Fat chance that they will do anyting. It will take some guts to say "no" to Bush. So far, the Dem congress has not shown any ability (slight inclination yes) to actually refuse to give Bush what he asks.

CNN reports that in 2001, when $400-$600 was given in tax rebates, two thirds of the money "entered the economy" within a few months. What kind of languaging game is that?
Entered the economy? SOunds like the description of a stallion impregnating a mare-- entering her. Well, money entering the economy is meaningless. It must help people and businesses financially, and help the economy. There is sex, sex for procreation and love-making. Money entering the economy is like mindless, loveless, sloppy, mindless sex, and nothing more. And the question is, who is being screwed, or screwed over?

There are a few million people who will lose their homes and probably their life savings in the next year. This bandaid will not help them.

There are banks and lending institutions that have lost tens of billions of dollars. This will not help them.

There are construction workers, electricians, plumbers, drywall hangers, carpenters, painters-- who will all lose work and jobs as the housing market worsens. This will not help them.

Next Page  1  |  2

 

Take action -- click here to contact your local newspaper or congress people:
We need to be smarter and not give money to people to pay off bills or buy imported junk from China. A flat tax rebate give-away is a VERY bad idea.

Click here to see the most recent messages sent to congressional reps and local newspapers

Rob Kall has spent his adult life as an awakener and empowerer-- first in the field of biofeedback, inventing products, developing software and a music recording label, MuPsych, within the company he founded in 1978-- Futurehealth, and founding, organizing and running 3 conferences: Winter Brain, on Neurofeedback and consciousness, Optimal Functioning and Positive Psychology (a pioneer in the field of Positive Psychology, first presenting workshops on it in 1985) and Storycon Summit Meeting on the Art Science and Application of Story-- each the first of their kind.  Then, when he found the process of raising people's consciousness and empowering them to take more control of their lives  one person at a time was too slow, he founded Opednews.com-- which has been the top search result on Google for the terms liberal news and progressive opinion for several years. Rob began his Bottom-up Radio show, broadcast on WNJC 1360 AM to Metro Philly, also available on iTunes, covering the transition of our culture, business and world from predominantly Top-down (hierarchical, centralized, authoritarian, patriarchal, big)  to bottom-up (egalitarian, local, interdependent, grassroots, archetypal feminine and small.) Recent long-term projects include a book, Bottom-up-- The Connection Revolution, debillionairizing the planet and the Psychopathy Defense and Optimization Project. 

Rob Kall Wikipedia Page

Over 200 podcasts are archived for downloading here, or can be accessed from iTunes. Rob is also (more...)
 

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

Go To Commenting
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Follow Me on Twitter

Contact Author Contact Editor View Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

A Conspiracy Conspiracy Theory

Terrifying Video: "I Don't Need a Warrant, Ma'am, Under Federal Law"

Cindy Sheehan Bugged in Denver

Ray McGovern Discusses Brutal Arrest at Secretary Clinton's Internet Freedom Speech

Libertarian Legacy? Ron Paul's Campaign Manager, 49, Dies Uninsured, Of Pneumonia, Leaving family $400,000 Debt

Interview: McCain Fellow Hanoi Hilton POW & Naval Academy Dorm-mate; Why He Won't Vote For McCain

Comments

The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
17 people are discussing this page, with 21 comments
To view all comments:
Expand Comments
(Or you can set your preferences to show all comments, always)
But a large proportion of the American people are ... by John R Moffett on Friday, Jan 18, 2008 at 9:09:40 AM
The US government invested a shipload of money in ... by Han on Saturday, Jan 19, 2008 at 7:02:52 AM
because getting this nation in more debt, paying h... by Athena88 on Friday, Jan 18, 2008 at 11:07:16 AM
do not want America to work.... at least not until... by richard on Friday, Jan 18, 2008 at 6:23:19 PM
DRASTIC WHAT ARE WE TALKING ABOUT, A WORD LIKE THI... by RICHARD SHADE on Saturday, Jan 19, 2008 at 3:14:19 AM
I sometimes worry that the only solution will be t... by Kahnaya Wasahtoha on Friday, Jan 18, 2008 at 12:15:22 PM
THE BUBBLE NEEDS TO POP, A RECESSION IS A BANDAID... by RICHARD SHADE on Saturday, Jan 19, 2008 at 2:05:50 AM
Part 1:  Where do taxes go?Part 2: How does t... by Daniel Geery on Friday, Jan 18, 2008 at 1:47:07 PM
That's right Daniel, and never mind the idea t... by Dom Jermano on Friday, Jan 18, 2008 at 6:41:45 PM
"Bottom line-- there are no simple solutions for o... by Mike Folkerth on Friday, Jan 18, 2008 at 2:16:31 PM
Americans are proud of their unfettered 'creat... by TomK on Friday, Jan 18, 2008 at 2:19:15 PM
You forget the $53 TRILLION unfunded debt! When Bu... by Mike Folkerth on Friday, Jan 18, 2008 at 3:53:56 PM
"My financial buddies and I have  lied a... by Edward Ulysses Cate on Friday, Jan 18, 2008 at 4:18:36 PM
The fixing of the economy is going to be, if it is... by E J Antunez on Friday, Jan 18, 2008 at 5:22:12 PM
For a good time: http://www.youtube.com/watch?v=yA... by Jeanette Doney on Friday, Jan 18, 2008 at 7:22:36 PM
This tactic was done 33 years ago by then Presiden... by iman on Friday, Jan 18, 2008 at 8:31:57 PM
 What you see is what you get.  OUR GOVE... by vincent passiatore on Friday, Jan 18, 2008 at 9:59:28 PM
Why do people always blame people with bad or poor... by Dom Jermano on Saturday, Jan 19, 2008 at 12:53:39 AM
 LOOKS LIKE WE ON THE LAST LAP HEADING FOR CH... by RICHARD SHADE on Saturday, Jan 19, 2008 at 2:25:05 AM
I told ya so in Nov. 2006last week and yesterday .... by Tony Forest on Saturday, Jan 19, 2008 at 5:45:38 AM
for a failing Economy............all the reasons f... by Ernest on Saturday, Jan 19, 2008 at 6:10:36 AM