Tag Archives: George HW Bush

Bringing VooDoo Economics Home to California

It seems the budget deal in the Assembly has been reached. Some cynics might say that the Assembly reached this deal out of a hope to help pass the term limits measure. At least that’s what some cynics might say. But, here’s what I have to say: Removing tax credits from teachers and redistributing them is some seriously f*d up VooDoo Supply-Side Economics. Go to the 3:50 mark in this video, although you’ll enjoy the whole thing if you are a Ferris Bueller fan.  The words of the GOP in the Assembly are eerily reminiscint of days we should be wary of returning to:

“This package is designed to stimulate the economy in the state,” said Assemblyman Rick Keene, R-Chico. “We have the data showing that it will actually increase revenues.” (SacBee 7/20/07)

Well, you know what, I have a different theory of economics. And it worked for us for over 50 Years, and it made John Maynard Keynes a pretty famous guy. And, oh yeah, it lifted us out of the Great Depression. So, the Republicans have asked for, and received from Democratic Legislators, about a Billion of tax credits for Hollywood studios and multinational corporations with secret data that will show that these will result in higher revenues.  Everybody knows this is bull, but apparently nobody in the Assembly is willing to say it. 

The Budget Battle is far from over, Flip it…

From the WaPo on W’s tax cuts:

Nobody serious believes that tax cuts pay for themselves, as I noted last week. But most senior Republicans flunk this test of seriousness. In January, George W. Bush declared that, “by cutting the taxes on the American people, this economy is strong, and the overall tax revenues have hit at record levels.” Regrettably, this endorsement of what his dad called voodoo economics was not a one-time oversight. The next month, Bush told a New Hampshire audience, “You cut taxes and the tax revenues increase.” (WaPo 5/15/06)

Listen, do we really need more “evidence” or “data” that supply-side economics works…for the top 1% of the economy. But, ask the rest of Americans how they feel they’ve done over the past 6-25 years of supply-side governance, and you’ll hear many stories of growing inequality. And this deal seems even worse in that it adds a double whammy, you’re not just robbing the middle class generally to give to the rich, you are robbing from teachers specifically. Teachers, who would spend that money to, you know, live, thereby increasing the impact of those funds on the economy. If you want tax cuts to have a real effect on the economy, let’s try starting with the bottom, who will spread that money up to the rich via, um, living a somewhat normal life and you know, eating more food.

But, Sen. President Pro Tem Perata seems to be pushing back on this swap of priorities:

“We cannot continue to fund education, higher education and crucial human services issues, such as the in-home supportive services program, childcare, or funding for the aged, blind and disabled by providing tax give-aways,” Perata wrote to Assembly Speaker Fabian Núñez. (SacBee 7/20/07)

So, don’t think this budget is over and done for, well, at least until 9AM, when a vote is scheduled in the Senate.  The Dems need only 2 Rep. votes for the 2/3 Requirement, but Sen. Minority Leader  Dick Ackerman seems to be digging in his heals, wanting further voodoo economics. Well, folks, enough is enough.  Perhaps if we could spend money on removing the 2/3 Requirement removed via the ballot, we wouldn’t be forced to make these kinds of false decisions. Some would say removing the 2/3 requirement would be a much better use of resources than a term limits change. But, you know, that’s just some people.