Monday, December 05, 2011

Magic Dollars

Okay, here's what I can't figure out: If government spending doesn't stimulate the economy, why will defense spending cuts hurt it? Is there something about defense spending dollars that circulate through the economy better than infrastructure spending dollars?
Republicans (and some Democrats) are lining up to find ways around the defense spending cuts that they themselves voted to implement should the Supercommittee fail, which it has. Funny, but I don't see the same ardor to preserve the domestic spending also set to be cut by the triggers. Is this because defense dollars are magic? Or is it because defense dollars have a different trickle-down effect: money goes into campaign coffers, then trickles down into defense contracts? Gee, I wonder where the money in the first half of that equation came from?
On a related note, why is it Republicans (and some Democrats) won't allow the payroll tax cut to be extended without offsetting spending cuts that will hurt a lot of the people who receive the payroll tax break? Could it be because this tax cut only affects those making $106,000 or less? I don't remember them being this aggressive about a tax cut being revenue neutral when the Bush tax cuts for the wealthy went into effect, or when they were extended last year.
Please correct me if I'm missing something.

1 comment:

Desert Marigold said...

And why was refined fuel our top 2011 export? I thought the whole reason behind the Canadian Pipeline was to get much needed fuel from a "friendly" country. If we have that much extra fuel, why do we continue importing so much from "unfriendly" countries? Am I also missing something?