Wednesday, December 8, 2010

Just wondering if you guys also thought the Rangers won?

Let me get this straight...the party which won the House, State legislators, and Governorships and made significant gains in the Senate lost???

The guy who extended the tax rates for everybody after promising to let them expire for the "rich" and making them his number 2 issue won?

They guy who promised to close Gitmo (Issue number 1) the funded of which has now been eliminated, by his own party, is sitting pretty.

And....and I just love this...the plan outlined by the former Speaker of the House to stimulate the economy... it is...make sure unemployment insurance is extended to over 3 years. Yes! That is a winning plan, support (but lose) tax increases on job creators and fund unemployment?


It is obvious that the "O" is attempting to triangulate, however it is unclear if pissy triangulation is possible...could either Rich?


Eric Martin said...

Like it or not, the multiplier on unemployment benefits is much higher than tax cuts.

I don't think that is even disputed by a qualified (as in PhD in Economics) macroeconomist. Is it?

I would think you would want to listen to David Stockman and let the tax cuts expire. O Well.

Think about this:

If no one cuts federal expenditures, and the deficit balloons, and the economy improves -- then Paul Krugman is right and you will have to send him a letter of apology for all those mean things you said about him.

Baxter said...

Jim wants to argue the horse race. Fine - the GOP won this last round in November. The GOP has subsequently won the war of wills. How will that play the next two years? We will see.

As "wave" elections go it was pretty lame. The Republicans couldn't even get the Senate. Vacuity only gets you so far, I suppose.

I think that GOP would have capitulated if Obama/Reid forced McConnell et al speak from the Senate floor to maintain the Filibuster through the holidays (which, under the rules, Reid can require). It would have squarely put the blame on the GOP when the tax cuts expired. So - Mitch would have caved, but not before it was too late for any other Lame Duck legislation. That, IMO, is why Obama caved and got little in return. He has other fish he'd like to fry before the new year.

I would have insisted upon raising the debt limit sufficient for the next two years. Absent that, the crazies will feel like they have the leverage to hold economic policy hostage. That, IMO, is when the GOP loses the middle.

Eric has been spot on in his analysis. The fact that the extension is only for two years lends hope to the prospect of fiscal rectitude next time around. In fact, Peter Orszag - former Obama budget director - recommended a two year extension for everybody, and then reversion to the Clinton rates for all.

Again - we will see.

Eric Martin said...

Some people don't know how to play chess.

How will Mitt Romney defend a tax cut for the top tier? He will look like a fool. He is now forced to run on doing away with the Bush tax cuts.

Newt 'Return of the Living Dead' Gingrich?!

Go team.