Sunday, March 8, 2009

Welcome to the Death Spiral

Steve Benen at The Washington Monthly: posts the following graph (Via Jaun Cole)

Says Benen, "See that column on the far-right edge? That's where Obama proposes the marginal top-rate should be. It's also the rate conservatives believe is so outrageous, that they're accusing the president of 'socialism' and talking openly about the 'Going Galt' scenario in which wealthy and industrious Americans would deliberately make less money to spite their country. It's all quite silly, but the graph adds some helpful context to drive the point home. Obama is proposing a top rate lower than Reagan's first term, lower than Nixon's, lower than Eisenhower's, and lower than FDR's when he pulled us out of the Great Depression."

Couldn't Agree More!

Meanwhile in my little town some Board of Finance members are trying to force the Board of Eduation to reduce their proposed budget by an estimated amount of Federal Stimulus. Such an action would, of course, reduce the current balance of the Federal Stimulus package (60% stimulus and 40% tax cuts) as it plays out in our education budget to 100% tax cuts and 0% stimulus.

One resident, an annual opponent of any spending, accidentally realized the problem when he said that "We will be in a recession as long as GDP continues to shrink and it won't end until people start spending again." Then, in his very next sentence, he advocated shrinking our local spending! This is the common wisdom and I am sure our town is not the only one that faces this shortsightedness. Welcome to the Death Spiral!

1 comment:

Anonymous said...

Thank you for updating your blog. Oh swell jubilation and rapture.. We should have a town plaque that reads the creed of "Some may never agree to fix a darn thing until two galaxies collide"
Can I please get an "Oy vey" I'm already a worrywart and now this!

Tomorrow night my relaxing stress busting yoga and chanting. An ancient practice that involves being squished in a crowded, smelly room uncomfortably close to a man in tiny underpants. Maybe Nama-stay home.