Thursday, January 17, 2008

Bush + Bernanke = Failure

The President commented today that he would like to use tax cuts as the means to stimulate the economy. Here's what's wrong with his idea:

A stop-gap measure requires you to plug the hole now. A tax break is like slowly filling the hole with grains of sand, one grain at a time. You might use up all your grains of sand eventually, but you'll never fill the gap because the water keeps pushing the grain of sand away. Likewise, a tax cut only trickles cash into the pockets of people, and in fact most people will only realize their large cash flow come next year when they file their taxes for a refund. How often do you receive a nice, big check after you've filed your 1040? We're well into the new year and the budget has already been passed, so this year's tax refunds cannot be retroactively changed.

And so that's how I know that the President is emotionally and financially separated from the common man; he knows not how the middle class actually does things. We will be paying for his mistakes for a long time.

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