Everybody Get Together, and Let's Stimulate!

Scotty Doesn't Know has been on a month long hiatus. Today, at this moment, I'm announcing that the hiatus has come to an abrupt end. President Barack Obama (damn I like saying that!) has assumed his office as the 44th President of the United States, and the big topic on everyone's mind is.....the economy. Economics, it's a perennially boring subject, one that is tackled by numerous intellectuals, and legions of idiots that have no idea what they are talking about. I think I fall somewhere in between. The economy is in dire need of a jump start, and the consensus opinion is that Congress needs to pass, and President Obama (there it is again!) needs to sign into law a stimulus bill to get things back on the right track. Simple, right? Well, actually, not so much. While Democrats and Republicans both agree that a stimulus bill is needed urgently, they disagree as to what shape it should take. Democrats generally favor a bill that would spend the bulk of the money on spending projects. There's lots of stuff in this country that needs to be built, rebuilt, or revamped. Our infrastructure is crumbling, we could use far more investment in high-speed rail and Amtrak, etcetera, etcetera, etcetera. The Dems also favor that a substantial portion of the bill be allocated as aid to state and local governments. The logic behind this position is that state budgets (most of which are required to be balanced, by their respective state constitutions) are in rough shape. What this means is that inevitably, states will have to cut services for their citizens. Now, cutting services in a bad economy is like burning lifeboats on a sinking ship. These services are needed more than ever, and if the federal government can help shore up these state budgets, many of these cuts could be avoided. Alright, well our friends in the Republican Party see things differently (go figure!). The Republican party led by House Minority Leader John Boener and Senate Minority Leader Mitch McConnell want the stimulus to be made up largely of tax cuts. They would like to see taxes on businesses cut, because they believe that the extra revenue that firms have in their coffers would result in them hiring more people. Basically, cutting taxes for those on the top will provide benefits that will trickle down to the bottom. I could at least respect this idea, if Republicans actually thought it would work. The problem is you know how I just said they believe tax cuts would result in job growth? Here's the thing, they don't actually believe that. Let's face it people, the constituency of the Republican Party these days is made up of Wall Street fat cuts, rich people in general, evangelicals, and Sarah Palin loving idiots that feel they are besieged by supposedly "liberal" America. Therefore, Republicans simply want to line the pockets of their constituents. That's why I share Matt Yglesias' view of Obama's strategy regarding the stimulus bill. Seriously Obama has been great so far. The speed in which he's undertaken the massive task of erasing 8 years of "misgovernment" has been astounding. Ordering the closing of Gitmo, banning torture (well almost), and higher fuel efficiency standards on automobiles are all great things that he's accomplished after one week in office. That's amazing, and he deserves all the positive buzz he's been receiving for it. However, his approach to the stimulus is misguided at best, and potentially devastating at worst. Republicans are disingenuous on this issue. They don't care about fixing the economy. Why should they? The majority of their constituents and fundraisers are rich enough that only the most catastrophic of economic collapses (Iceland style) will harm them. They are completely insulated. Obama has stated that he wants massive bipartisan support for any stimulus bill that passes through Congress, massive to the tune of 80 votes. That's all well and good, but Obama can either sign into law a stimulus that has bipartisan support, or he can sign into law a stimulus that will work. Our nation hasn't been in such dire straits for a long time. Critical action is needed, and there's plenty of evidence that Republicans are not negotiating in good faith and are generally cynical about any stimulus whatsoever. I understand that Obama campaigned on the promise of bringing an end to partisan bickering (and he still can do that) but he should not do so at the cost of effective policy. What we need is a stimulus that provides for upwards of $1 trillion worth of infrastructure projects, investment in high speed rail and other transportation systems, aid to state and local governments, as well as increases in unemployment benefits, food stamps, and other programs that help those in need. There are other great projects that could (and should!) be included in the stimulus, but these things are merely what I'd like to see. I really hope that Obama wakes up tomorrow and realizes that all this bipartisan stuff is a waste of time. I hope he says to himself "I have high approval ratings. I have lots of political capital, and my party has massive majorities in both houses of the legislature. I should pass a stimulus that helps ordinary Americans!"