Roman Around

combating liberalism and other childish notions

THE DEMOCRAT EIGHT-DOLLAR-A-WEEK DELUSION

Posted by Andrew Roman on February 17, 2009

how can New Yorkers not be proud?

how can New Yorkers not be proud?

Spread it out, and they will spend … that’s what Democrats say.

Okay then.

I’m ready to do my part by giving this economy a good swift kick in the pants.

Let’s see … Eight dollars will almost get me a pack of cigarettes in New York City – and at some places in town, a full one. Eight bucks, however, will not be enough to get me across the Verrazano Bridge into Staten Island by car (that’s $10.00), but I would be able to take four subway rides. It’ll also score me a McDonalds double quarter-pounder value meal in Manhattan, or a week-and-a-half of New York Times home delivery at fifty percent off the regular subscription rate. For that kind of money, I can take home about a third of a pot roast, or just under two jars of Manischewitz Premium Gold Gefilte Fish.

In other words, I’d better start reworking my budget now … the Obama “tax cut” is coming to town.

To be fair, the Obama “tax cut” plan – similar to George W. Bush’s “stimulus rebate” check dispersal in 2008 (but only spread out over time) – is slated to afford taxpayers about $13 a week in extra spending cash beginning in June, but then fall back to about $8 at the beginning of next year. That means for the second half of this year, people like me will be able to afford an extra box of Bubba Burgers and a roll of Viva paper towels … or three heads of lettuce and a couple of gallons of diesel fuel … or almost fifteen boxes of chicklets.

Look out, economy … here we come.

And how do we know this will work? 

Because the illustrious and never-interesting Charles Schumer, Senator from New York, gave his ringing endorsement to the plan. Drawing eloquently from his bag of crippled cognition, he said, “Instead of giving one paycheck at once…” (as opposed to giving one paycheck twice, I suppose) “… which George Bush did, and it really didn’t stimulate the economy, the economists said ‘stretch it out and people are more likely to put it into economy and get our economy going.’ ”

Whether or not America’s retailers are bracing for a stampede of eight-dollar power shoppers is unclear.

What is clear is that Democrats simply don’t get it.

Schumer is right in that George Bush’s ridiculous stimulus debacle did nothing to jumpstart the economy … but being a Democrat, Schumer lives and operates by the credo “If something fails, do it again!”

While it is true that people will tend to spend more if they see more money in their paychecks on a regular basis, insignificant rebates such as these over a limited stretch of time is hardly the way to get people digging into their wallets. Remember, the entirety of each Obama “cut” is a mere $400 for each individual and $800 for each couple.

I hate to be the one to sneeze on someone’s Pop Tart, but this is sheer idiocy. The impact of such “cuts” will be barely perceptible, if at all.

Not only is this $13 a week nonsense not a “tax cut,” but the fact that these “cuts” are not permanent will dissuade people from the kind of purchases needed to get the economy rolling again.

From Fox News:

Some worry the cut is not enough to encourage consumers to go out and spend. And since two-thirds of the economy is consumer spending, the effectiveness of the tax cut in spurring workers to open their wallets is key to an economic revival.

“The average person will get $8 per week in their paycheck and they will pass on to their grandkids $1.1 trillion in debt,” said Republican Sen. Lindsey Graham, S.C. “We created more new government than we did jobs and the substance and process cannot repeat itself.”

Moody’s economist Mark Zandi also says the nature of the tax cut could reduce the number of jobs created by the $787 billion stimulus package.

“With regard to how much of the tax cut’s going to spent for individuals, the White House, I think, is assuming that people are going to behave as if that tax cut is permanent, and I doubt that will be the case,” he said.

Precisely.

The ability of people to buy an extra box of Swiffers on a weekly basis thanks to distributed rebates that will total far less to each working person than what George Bush offered in his failed attempt at stimulus will do positively nothing for the economy.

Compare someone who is given a genuine tax cut – that is, an actual reduction in the percentage of the tax being paid resulting in the ability to keep (and spend) more of one’s own money – with someone getting miniscule rebates for a limited period of time. People are less likely to spend when they know the boost in take home money – in this case, a whopping $13 a week through the end of the year – is temporary.  However, if a genuine cut in taxes is made permanent, then people can more reliably count on that extra money being there and budget accordingly. People are more likely to spend when they have more of their own money.

I’m wondering if Chuck Schumer is openly advocating for struggling taxpayers to take on additional monthly payments for items such as washing machines and big screen televisions using “stimulus money” knowing that it will run out long before the items have been paid off.

Then what?

More outstanding debt on top of growing debt?

I guess if it’s okay for the government, it’s okay for Johnny Lunch Bucket.

_____________________________________________

Update: February 17, 2009 – 5:35 PM

A blogger at FREE REPUBLIC.COM called theDentist commented on my observation that the $8.00 a week “tax cut” wouldn’t even be enough money to get across the Verrazano Bridge, from Brooklyn to Staten Island, seeing as the toll is $10.00.

He wrote:  “Well, that’ll get you 80% across. From there, you jump like the rest of us.”

Too funny.

 

the fact that it costs $10.00 to cross the Verrazano Bridge from Brooklyn into Staten island

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: