The Future of Freedom Foundation writes about how the Republicans no longer understand the economy in Republicans Are Now Good for Exactly…Nothing!
Nancy Pelosi, Chuckles Schumer and the rest of the Dem wrecking crew surely have the Trumpified GOP by the short hairs.
The latter are clueless about the real imperative, which is to halt the senseless shutdown of the US economy ASAP. So like deer caught in the headlights of public fear, outrage and hurt by the Covid Quarantines, they have blindly succumbed to bailing out one and all; and that, in turn, has opened the US Treasury to a congressional feeding frenzy that would make the New Deal porkers, the LBJ spenders and the Obama shovel-ready folks green with envy.
In less than a month, they have passed the $8.3 billion vaccine bill, the $100 billion relief and paid leave package and the $2.2 trillion Everything Bailout, and are now racing toward another $1.0 trillion interim CARES 2 funding bill to essentially double- down on all the outrageous pork and Free Stuff that was contained in CARES 1, which the House did not bother to even debate or approve by recorded vote.
And, alas, all of this is preliminary to the impending “stimulus/infrastructure” bill where the bidding starts at $2 trillion, meaning that the Imperial City is in the throes of a fiscal bacchanalia that defies imagination. It will leave America with unspeakable debts, political dysfunction and economic debilitation for years, if not decades, to come.
And exactly what is being loaded on the budgetary wagon while the denizens of the political party which is supposed to be the watchdog of the Treasury have their collective snouts buried in the public trough so deep that they too will need a respirator before long?
Well, it’s bad enough that Republicans voted for $1200 per person for upwards of 130 million workers who have not and will not loose their jobs and incomes owing to the covid shutdown, even if an unfortunate 30 million do become unemployed for a few weeks at the peak of the shutdown.
But if you ask what possible reason of policy or equity could justify this $300 billion eruption of Free Stuff, the best you can get is some kind of convoluted Keynesian asininity that is even more absurd than the old standby of hiring people to dig holes with teaspoons and then fill them back up with the same tools.
To wit, we are apparently giving the 130 million workers who are and will still be earning the same paycheck but spending far less because everything is closed (you can only spend about $25 per day on Netflix even if you watch movies dawn till dusk) another $1200 to spend on top of their normal income. Then, assuming they can find a place which is open to spend their extra loot, it is hoped such places will hire the 30 million covoid-layoffs so that they too will get back to living hand-to-mouth just like before.
Folks, once upon a time—even in the 1970’s when your editor arrived bright-eyed and bushy tailed on Capitol Hill—Republicans understood fundamental capitalist economics. They did not even have to be told there are no free lunches and that Uncle Sam cannot create production and income (i.e. wealth), but only shuffle it among citizens by taxation currently or by extracting it in the bye-and-bye from future taxpayers via piling up the public debt.
See also Mises Institute: Why Keynesians Don’t Want You to Save Your Money