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Monday, September 27, 2010

Griper Blade: Republicans, Blue Dogs Engage in Class Warfare

Rolls Royce
Republican and Blue Dog Democrats want to extend Bush's tax giveaway to the wealthy -- yay for bipartisanship! Unfortunately, this is proof that bipartisanship for the sake of bipartisanship is pretty useless. It also proves that conservatives are out of touch when it comes to economic issues. Extending the tax giveaway isn't the most popular idea out there. Worse, while Republicans don't want to pay for this at all, the Blue Dogs suggest doing this "responsibly" by cutting spending elsewhere. Since we're talking about a tax cut that would blow a $36 billion hole in the deficit, we're also talking about deep cuts someplace.

"Look, I'm glad Blue Dogs don't just want to cut taxes for the wealthy with more deficit financing, but their priorities don't make any sense," Steve Benen wrote this weekend. "They want to cut spending (which improves the economy) in order to pay for breaks for the wealth (which doesn't improve the economy)." We may be out of the recession, but we aren't out of the woods. Demand is still low, which is driving the unemployment crisis. Cutting government spending means reducing demand further, while extending the tax giveaway doesn't really do anything. If it did, the Bush economy wouldn't have been so stagnant until it finally crashed. If there's one thing that should've become obvious by now, it's that supply-side economics is basically a superstition -- we've watched it fail for about a decade, if not longer. Extending Bush's tax cuts to the richest Americans won't do a damned thing for the economy. At least, not anything positive.

Still, we've got those who FDR called "economic royalists" working to help the wealthiest at everyone else's expense. For them, economics works like this: the very wealthiest people are the most important people ever and the rest of the world is just a support system that makes their lives possible. The end...[CLICK TO READ FULL POST]

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