Tuesday, January 06, 2009

The GOP is blackmailing Obama into providing tax cuts if he wishes to pass his stimulus plan. The country is in danger of potentially regressing into the Great Depression II and most legit economists say on record that a massive spending package is needed to avert such a disaster. However, the GOP does not wish to hear from high-minded academics; they'd rather do as usual and cater to their affluent cronies. Of the proposed $775 billion plan, 40% is now pegged towards tax cuts, leaving around $500 billion in spending money. But even the $775 billion figure was regarded as too light if it were completely dedicated to spending as most credible figures on the subject state that more like $1 trillion is needed to really push the needle.

What's most outrageous is to witness the GOP suddenly gain renewed religion when it comes to fiscal prudence. From 2000-2007, the GOP controlled government spent our money like there was no tomorrow, as shown in this graph:

Notice the two rising red lines. The deficit as a % of GDP has risen under Reagan, Bush I and Bush II.

It's hard to imagine Republicans becoming any more of a joke.

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