Thursday, July 1, 2010

Response to Valliere

In the article, Valliere: A GOP Conspiracy to Weaken the Economy?, I posted the comment:

Valliere makes a biased and sophomoric argument against Republicans in this article. Extending handouts does not strengthen an economy. In fact, it will accomplish the exact opposite opposite because public money is going out the door and nothing new is being created. These are not public works programs, which would actually help the economy.

The problem with handouts is that incentives become misaligned. On one hand you make the choice to receive free money for doing nothing, compared to getting up at 6am every morning to go to work. The choice is easy for most people.

Republicans are actually doing a great thing for this country by aligning people's incentives with the costs and benefits. I bet these long term unemployed will start finding jobs once their freebies are curtailed.

I personally know people who have been receiving unemployment benefits for years solely because they would rather sit around collecting free money instead of going to work each day. I would bet there is a fair share of those in the current unemployed category.

You are going to compare medical decisions of doctors from 250 years ago who had but a 100th of the knowledge we have now to Republicans making a choice about the economy? A juvenile comparison.

"I would argue loud and long that deep spending cuts — including entitlement reforms — should occur once the economy stabilizes"

The problem is, these cuts never happen. But more to the point, the major fact right now is that voting against additional handouts is not a 'long and deep spending cut' where money was already being spent. The difference is that new freebies are just not being created.

Yes, extra spending could help out our economy, but only on projects that directly add to the GDP. And unfortunately politicians of the past blew it, because now we are all tapped out. Instead of being responsible in the past and saving a rainy day fund, politicians have always had the tenacity to spend, spend, spend regardless of what the state of the economy is in. After the recession is over, politicians are going to suddenly become responsible? Yeah right.


Reading other comments brought some additional points. One being that Republicans are the minority in congress and they're still being blamed.

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