TW: Why the Arena at Politico continues to let this guy post on anything is beyond me but why they permit this attorney with no apparent economics knowledge opine on the stimulus package is even more perplexing.
From Calabresi on the stimulus plan:
"The federal government is spending way too much right now and indeed federal spending is set to reach the highest percentage of GDP since World War II. The biggest failure of the Bush Administration was its inability to keep federal spending from exploding and the former president’s failure to use his veto power.
The stimulus package on top of the financial bailout on top of the former president having let federal spending get out of control threatens to create a fiscal catastrophe. We cannot afford to borrow even more money right now from China to pay for long run capital improvements that will not immediately stimulate economic growth. What we should do is cut the two lowest federal income tax brackets as House Republicans have proposed. And if we do spend any borrowed money we do not have on capital improvements it should go for construction of new nuclear power plants"
TW: The illogic of his position is simple. He asserts (wrongly but that is for a different post) that the government is at risk of bankrupting the country with stimulus spending by increasing the deficit. His solution is to cut taxes. Obviously, to most presumably but not him apparently, if the concern is the deficit, then cutting taxes will result in exactly the same problem a higher deficit.
http://tinyurl.com/dnb225
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