Tuesday, February 24, 2009

Tax Cuts Trickle. A Stimulus Pours.

While haggling over the economic recovery package, many conservative Republicans (if they would favor the package at all) argued that it should be dominantly or completely made up of tax-cuts rather than stimulating spending. This assinine argument assumes that we are idiots. Both cutting our income or increasing our spending can hit the bottom line at the same level. The shift is on opposite sides of the ledger, but it's meant to address the different constituencies.

It isn't class warfare; it's political warfare that pits the classes against one another. Trickle down economics ruled the 1980s, the system viewed American society as a slope, with the rich on top and the poor at the bottom. Benefits needed to be poured on the top and those would trickle down to the bottom. Anyone who has actually grown anything on a slope realizes that the trickle dwindles until the bottom is left with almost nothing.

I look at our society and see it as a bell curve. More people earn income that would place them in the middle than at the top. The stimulus package focuses on the middle more than a tax cut package would.

Pour that stimulus straight down on the middle of the curve and watch it flow to both sides.