The "stimulus" that magically pulled us out of the GOP depression? 10 years from now we'll still be planning our way out of this one.
Let's go back to recovery.gov - the site that tracks President Obama's Stimulus Spending
They have an "Overview of Funding" section.
"Overview of Funding
The American Recovery and Reinvestment Act of 2009 distributes the $787 billion as follows:
Category Funds Made Available Funds Paid Out Total Recovery Act Funds
Tax Benefits ....................$0B $243.4B $288B
Contracts, Grants, Loans ..$275B $161.9B $275B
Entitlements ...................$181.2B $171.9B $224B
91% of funds, excluding tax benefits, have been made available.
As of: 11/27/2010"
Now let's take a closer look. The $243.4Billion spent on tax cuts (to 95% of taxpayers) in the form of a few dollars left in everyones paycheck - has not held unemployment to 8% as promised - it's now 9.8%.
The "Shovel Ready" spending (I assume) falls into the "Contracts, Grants and Loans(?)" category - and has been exceeded by "Entitlements" spending?
Perhaps the "Shovel Ready" term didn't actually have anything to do with construction?
It appears to me that tax cuts (in the form of a few extra dollars per week in a workers pocket) do not create jobs (unemployment has gone up). Businesses and business owners create jobs. People hired to work in businesses take their wages and stimulate the economy - their tax withholdings fund the Government (unless you give back their Social Security withholdings via Earned Income Tax Credit and they make less than $50,000 per year/family of 4). I think it's fair to add the proposed extension of unemployment benefits to the "Entitlements" tally of this illustration.
Does anyone else have a different analysis of these results? It seems to me that giving tax breaks to 95% (everyone except the top 5%) of taxpayers doesn't create many jobs.
I wonder what the effect would be if only the top 5% maintained the current tax rates and everyone elses tax rates (the 95% who don't pay much now) went up just 2% and for people who don't work at all - a reduction of benefits of 2% - can anyone make those calculations?
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