Tuesday, July 6, 2010

The key economic debate

This article does the best job that I've seen, thus far, describing the give and take going on right now in managing our economy. Basically, Americans are scared to death. When you ask them about their fears, the overwhelming response has to do with our deficits and our indebtedness to China. Republicans are leveraging this fear and pounding the table to cut deficits, cut spending, and hold taxes where they are. Democrats think the lowered tax rates brought to us by Republicans are a root cause of the deficits. Democrats think we need to spend more to jump-start our economy, or we'll fall back into a death spiral leading to even greater unemployment, slower growth, and therefore higher deficits.

This is also a debate playing out on the international stage. The US wants to continue stimulus spending to ensure our economic recovery takes hold. Europe wants to slow spending, raise taxes and hack away at the budget deficits and debt.

What's the right approach? Hell, it's easy to be on the fence. Smart people are on each side of this debate, all of whom are making excellent points. But the one point that carries the most weight for me is this: Roosevelt vs. Republicans, 1937.

This debate happened in 1937. Republicans raised hell about Roosevelt's deficit spending in his administration's efforts to pull our country out of The Great Depression. Republicans won that debate. We stopped the stimulus spending in its tracks and cut our deficits. The economy got worse, not better. More people lost jobs. The Depression continued for another 3 years until our economy got saved by all the production efforts of World War 2 - a governmental stimulus effort of massive proportions.

History has a way of repeating itself every generation or so. This is one piece of history I really don't want to live through in my lifetime. I'm siding with the Democrats in this debate. We need to jack the stimulus up until its clear we're out of the woods of this economic disaster brought to us by President George W Bush and his merry band of Republican idiots. I just don't have a desire to live through 1937 - 40. Neither should you. To avoid it, let's kick a Republican idiot out of office. And North Carolina Republican Senator Richard Burr is a good start.

North Carolina simply deserves better than Republican Senator Richard Burr.

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