Last year’s tax rebate, Durbin now says, didn’t work. This bipartisan scheme operated on the theory that if Uncle Sam dropped tens of millions of checks from government helicopters to taxpayers and non-taxpayers alike, they would spend the windfall, revive consumer demand, and jumpstart an economic recovery. Unfortunately, as economist Martin Feldstein demonstrated in a Wall Street Journal editorial, Americans used about 80% of their windfall to pay off mounting credit card debts or stabilize their dwindling savings accounts. No economic recovery there.It's the old joke realized about the two hill-billies buy hay at $3 a bale each. Load their truck and go down the road and sell it off at $2.50. At the end of the day the first hill-billy looks at the second and asks why they are broke. The second hill-billy scratches his head and looks around a bit, "I dunno," he replied, "Maybe we need a bigger truck."
Sunday, January 11, 2009
From over on The Corner by Michael G. Franc