Mr. Bush has yet another brilliant plan before he leaves office: A national economic recovery act solely based on the notion that if only every family in America just had an additional $600 in tax cuts, despite the huge federal budget deficit and national debt and interest payments to Chinese, Japanese and South Korean banks, and will run just down to their local Wal-Mart and buy something, most likely produced in China, like say a $600 HDTV, then the American economy will be all hunky dory and recession can be avoided. Simple yes?
Like everything else from this Bush Administration this NRA (National Recovery Act) plan is way too simple and wrong. The Roosevelt NRA plan of the 1930's was based on achieving several critical areas such as reviving industrial production, assisting victims of the depression such as the unemployed and homeless, a guarantee of a minimum of living standards for the average American, and preventing a slip into a future economic crisis.
The WPA provided work for many unemployed by building of massive public works projects that remain today as important infrastructure. A minimum wage was established. Fair credit terms were established. Wage and price controls prevented any slide into inflation or greed based ripoffs to consumers by some individuals.
The Bush plan does nothing to rein massive oil price inflation that has resulted in food price inflation or inflation in so many other goods and has really helped to cause this latest recession. There still is no real action to rein in the bad home creditors who helped to cause the collapse in the real estate market. And loan shark industries such as payday loans and cash advance crooks still flourish.
Outlandish credit card interest rates and practices still continue, keeping many families in economic bondage to their credit card debt for decades. Nothing in the Bush plan addresses these four areas that so harmed the American economy. Once again, the Republicans only advance their one-note solution of a little tax cuts against a federal deficit ruined budget and an economy ruined by a greedy few for everyone.
At one time, even war spending used to help the economy by putting so many persons back to work. But modern wars can no longer do that because of the huge price inflation in high tech war goods and the far lower employment offered to build such goods. During WWII, your average American fighter plane cost just $6000 minus the motor. Today an F117A Nighthawk stealth fighter plane costs $122 million each. In the 1980's ATLANTIC MAGAZINE predicted that by 2054 it will take the entire defense budget of the U.S. just to buy one single high tech aircraft and no money will be left over to hire a pilot to fly it due to the current military hardware price inflation trends.
In the meantime, while Mr. Bush fails to address any single important issue related to the economy and simply offers up his one-note solution of a one-time $600 tax cut that will likely only help the American economy for about three months, but likely also will result in a higher trade deficit, and decades of interest payments on the national debt to foreign banks, some Americans are already measuring their living room for their new Chinese made HDTV from Wal-Mart.
Note: Wizbang Blue is now closed and our authors have moved on. Paul Hooson can now be found at Wizbang Pop!. Please come see him there!