Deemocrats are planning a big CRISIS spending binge...again...prior to the Memorial Day recess. As always, they completely ignore even fundamental economic reality...and the law. The same old "chicken little dance".
One big feature of the Deemocrat plan is ANOTHER extension of unemployment benefits. This is in line with the perversion of Keynesian theory that offers a miraculous boost in the economy for every dollar spent by gubmint. Of course, this is facially stupid; if we bought that concept, we should be spending out the wazoo even in boom times, and that would assure economic growth at 1.5 times wazoo. Silly, yes?
But economics 101 assures us...and this works every time it is tried...that if you subsidize any damn thing, you will get damn thing surpluses. That includes UNEMPLOYMENT.
Naturally, when you read about "spending" plans from the MSM types, they include deferring the elimination of tax cuts...also known as TAX INCREASES...as gubmint "spending". See, the MSM agrees with the political elite that our money "belongathem", as they say in Australia. So, when we get to keep it, it is a "cost" to government.
They thereby IGNORE another basic economic truth: when you leave people with their own money, you get growth in the economy, because they spend it or save it rationally. That translates into innovation, business creation and development, consumer spending, etc. That, in turn, results in MORE...NOT LESS...revenue to government than does increasing the tax rate. (See Laffer Curve)
But Deemocrats passed into law "Pay-go" with much flourish and fanfare. It is the LAW. Naturally, they are choosing to ignore the law. It really should have been called "Pay-GONE".
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