Friday, February 6, 2009

Media Matters Problems With the Media

I need to stop looking around the web so much. I get into trouble. I am looking to build traffic so in one of those little blog pool, hope to find things I could comment on. Well with out going into half a novel. Even more myths and falsehoods surrounding the economic recovery plan
Media Matter No. Weellll. Let's see how bad it is. And here we are.

1. The bill will not stimulate the economy
It will but not that much.. if any. And not mostly in the first years

2. Government spending in the bill is not stimulus
Some is, some is pretty iffy, and some is regulation(not stimulus)

3. There is no reason for stimulus after a turnaround begins
For a while but exactly how long? The end of time? McCain sunset?

(Just to be clear I only half heartedly read some of this. You know where some of it goes.)
4. Corporate tax rate cuts and capital gains tax rate cuts would provide substantial stimulus
Almost got me. ( quote of a quote)
"Cutting corporate tax rates on a temporary basis, as some have suggested, could even discourage investment. Cutting tax rates reduces the value of deductions that companies claim when they invest, make other purchases, pay wages, or depreciate equipment; for example, a $1,000 deduction is worth $350 at the current 35 percent corporate tax rate but would be worth only $250 at a 25 percent rate. If tax rates were cut on a temporary basis, companies would have an incentive to delay investments until the rate returned to 35 percent and deductions regained their lost value."
This may be true. It is however ass backward. It is about giving the company more money to spend. Company made $100,000 after cost. Takes 30,000 in deductions. 70,000 left. At 35% gives 24500. at 25% gives 17500. A 7000 dollar difference? Is that right? I guess your really taking about the costs to begin with. Your giving the company more money. If they have more money they can spend how they wish, make more money. Advertising, new equipment, more employees and invest. They can make more money than they supposedly "save" by waiting for higher tax right offs? They are not going to try to make money with extra money? Almost got me.

"Any windfall that taxpayers receive from a capital gains tax cut is unlikely to be spent quickly. The main beneficiaries of capital gains tax cuts would be high-income taxpayers, who own the vast majority of assets."

Fine. I don't disagree. The point however is that people like to make money. If money, especially large chunks of money, that are in gold, in bonds or under the mattress go back into the market (because "high-income taxpayers"like to make money) companies have more money to make more money and grow the economy. Some people might make enough in a good economy to have to worry about capital gains. Wouldn't that be horrible.

5. Undocumented immigrants without Social Security numbers would be eligible for the "Making Work Pay" tax credit
"No credit shall be allowed under this section to an eligible individual who does not include on the return of tax for the taxable year --

(i) such individual's taxpayer identification number, and(cont.)"
We got a "taxpayer identification number" for my dead grandmother's estate? I think? Does she get a tax credit? And how do "undocumented works" pay taxes? With a "taxpayer identification number"? I don't know. Really I don't have a clear answer.
6. CBO analysis found the majority of stimulus won't take effect for a year and a half
Shifting sand, but it all should be in the next 18-24 months.

7. Food stamps, unemployment payments are not stimulus
They are but how much? And when does the increase end?

8. The New Deal did not lower unemployment
Don't know. I think though a 10 year depression? They did something wrong at the very least.
"Paul Krugman has written that the New Deal produced "long-run achievements" that "remain the bedrock of our nation's economic stability" and that Roosevelt's short-term successes were constrained because "he was eager to return to conservative budget principles."'
Don't buy that. The social safety net? Its been a long running debate that is beginning to lose.

9. Fiscal stimulus in Japan failed during the "lost decade" of the 1990s
( are there any documents that don't link to their site?)
"that "the 1995 stimulus package ... did result in solid growth in 1996, demonstrating that fiscal policy does work when it is tried. As on earlier occasions in the 1990s, however, the positive response to fiscal stimulus was undercut by fiscal contraction in 1996 and 1997.""
If the uber-consumer stops spend that happens. The uber-consumer should never become existed in the first place. "You just have to spend more"? Just keep the economy propped up by deficit spending forever. That's Healthy. Wait. There's a problem. You need lots of little consumers. They harder to control but the system is much more stable.

10. The economic recovery bill would amount to spending more than $200K per job created

11. $4.19 billion of stimulus "would go to" ACORN
ACORN gives and gets money from all kinds of place. If the bill doesn't say ACORN that doesn't mean they won't. I haven't looked into this.

12. Robert Reich proposed excluding white males from recovery plan
I posted this socialist nonsense video before. See it for yourself.

They seem to look at the issues from weird angles. It never quite makes sense to me. I am willing to listen. I haven't heard anything yet.

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