Kevin to Robert: “The $4 trillion in 2008-2011 tax cuts were supposed to create jobs, but they didn’t. Nor will Obama’s $447 billion “jobs” bill – composed of 60 percent of tax cuts – create jobs. We had 25 million jobless when Obama came in office. After $420 billion in tax cuts in 2009 and another $802 billion in tax cuts in 2010, we still have 25 million jobless today. By what logic does anyone think another $270 billion in tax cuts will create jobs when more than $1.2 trillion did not? Whether another $270 billion in Obama’s “jobs” bill or more (which is likely after Republicans take a whack at it), six months from now, there will still be 25 million jobless – as the US and global economies continue to drift inexorably toward a double-dip recession.”
Robert to Kevin: I do not agree with what you say … The main fallacy is we were plummeting towards depression and TARO and the Recovery Act broke the fall. So they did work, even if they weren’t perfect. With more of the same, we would be on the way to recovery by now. Not perfect, but a heck of a lot better. Robert
Kevin to Robert: In the quote I gave you Jack Rasmus focuses on the tax cuts. Of course, some of the stimulus worked — give money to states for teachers and other state workers as well as infrastructure will definitely create or save jobs; the issue he seems to be raising is whether the tax cuts worked and whether these new smaller tax cuts will work. We need much more direct stimulus actually creating jobs and much less tax cuts that don’t — especially tax cuts like the payroll tax cuts that undermine Social Security and Medicare, doing long term damage without much short term benefit.
