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Friday, December 3, 2010

Raising Taxes Increases Unemployment, Which Helps Create Jobs, Right?

As you may have read in my previous post, by extending unemployment benefits, you create jobs.  Therefore, now that unemployment rose from 9..6% to 9.8%, more people will be unemployed and receiving unemployment benefits, which helps create jobs, which means unemployment will shrink.  Ergo, we need to get those wage earning assholes unemployed again so we can stimulate job growth.  You're following this, right?  

Based on Sherrod Brown's logic, this must be why the Democrats are against keeping all of the Bush tax cuts (side note: the crats get pissed when you call health care reform Obamacare, but it's totally acceptable to call this the Bush tax cuts) - unless we let them expire and increase unemployment, we'll never get out of this vicious cycle.  

Okay I've managed to confuse myself.  It can really only be one way, right?  If you allow the tax cuts to expire during a recession, or whatever the kids are calling it these days, you're going to prohibit job growth.  I was listening to a special on Laffe's curve the other day (originally written on a piece of napkin. The graph, not the special, I think) and it seems to make sense to me.  As the clown that writes this page with me explained the other day, at a certain point, the wealthy contribute less when their taxes increase, and therefore overall GDP will eventually go down.  Guess what? It's the reason the rich are rich.

What's really frustrating though, is that when bad news comes out, Obama is nowhere do be seen. You'd think the master of spin would be out today, saying how "we turned another corner today, and this is why you enemies should have elected the Democrats back to office."  But alas, only when surprising, I repeat, SURPRISING job data comes out do we see Obumbles.  Odd though, he understands all of this better than we do - he just has the darnedest time explaining it to us simpletons.  And when the facts are out, well, there's no way we'd be able to see the positive in this, so he might as well not even try.

Moral of the story? Don't count your chickens before they hatch. Don't come out and blab about recovery summer (a very close second in absurd statements made by the administration only to "the stimulus worked"), don't say we turned a corner, don't blame the Republicans for the economic disaster when your party was in power when it happened (the lost decade? the Crats were in power for half of it).  Now I don't blame Biden that much, only because he has two go to moves: plagiarize speeches, or make shit up (by the by, that speech was not the only thing Biden has plagiarized). Fact is, Biden was elected because any time he gaffes,  it's laughable.  I use the term "gaffes" loosely here, but for clarity's purpose you can also use the word "speaks."  

Here's who I do blame - Obama (shocking, right?). I'm sick of being treated like a two year old.  Now "I couldn't paint you a picture, I probably can't hit the ball out of Fenway, and I can't play the piano" (see what I did there? I stole a speech from Good Will Hunting - my idea came from Biden).  But here's what I do know a little about.  Economics - I stress a little.  But truth is I don't need to know anything about economics to know that when unemployment continues to flirt with 10% after we've spending nearly a $1 trillion to fix it - it didn't work. So stop lying to me, stop saying that we're on recovery road, stop coining stupid phrases like "recovery summer."  But most importantly, stop spending to get out of the recession, and create common sense tax relief to support and inspire job growth.  Interesting side note, Google "incentives and economics."  You'll learn all you need to know about why the free market system works, and government takeover doesn't. My next prediction? Fall (didn't really need an adjective there), followed by "Woeful Winter."

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