« The Voices in Mitt Romney's Head | Main | Obama's Claim about Single Payer Health Care »

Bush's NRA Plan: Buy A $600 Chinese HDTV From Wal-Mart Today, Pay Interest On The National Debt To Chinese Banks For Decades

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!

  • Currently 4.2/5
  • 1
  • 2
  • 3
  • 4
  • 5
Rating: 4.2/5 (5 votes cast)


Comments (2)

I agree the $600 rebates are unlikely to do any more for the economy than the previous edition did. Any stimulation will be quite temporary. I think the President and the Congress understand this quite well, and the real intent is to buttress consumer confidence by giving the appearance of "doing something."

I do take exception, though, to the notion that our debt held by the Chinese or any other foreigners is a problem (given the level of the debt as a constant, it matters not at all who holds it).

The foreigners who hold our government debt don't hold a mortgage on anything, as is often falsely presented. They buy T-bills on the open market. These securities are issued in given amounts with set interest rates paid at maturity on a date certain in the future. No matter who buys them, or sells them before maturity for more or less than paid originally, the US only pays the exact amount promised on the date promised. No more, no less. We know how much we have to pay and when we have to pay it from the day the notes are sold.

It affects the United States not at all whether a maturing T-bill is held by some Chinese investor, Korea fund, Kuwaiti bank, or Mrs. Maybelle Zlotkowski of Waukeegan, Illinois.

In fact, the some 35% of our government debt which is held by foreigners is a sign of the underlying strength of our economy. They could earn higher interest in euros, and the dollar has been steadily declining, yet America remains the safest place for money to be stashed from anywhere in the world. It's a huge vote of confidence in our economy and our country. That's not a bad thing at all.

Lee Ward:

As I understand it (which is limited so feel free to correct me on this Paul) the danger to our economy comes from the threat that the Chinese could decide to sell off their US Treasuries, driven up yields, and putting upward pressure on our interest rates at a time the Fed is trying to lower interests to stimulate the economy.

It is a very big problem, and a very big concern, to have other nations wielding that degree of control over our economy.

The Republicans' ill-advised debacle in Iraq has done nothing to make our nation more secure -- our reliance on oil makes our current position even more at risk by increasing the volatility of the middle east -- look at the curren price of oil and the large "risk" poremium built into those prices...

And the debt from that ill-advised war has increased our exposure to economic problems, as illustrated here.

As a conservative, Jim, I would expect you to be outraged about the degree to which the Republicans have weakened our nation's security while supposedly trying to strengthen it.


Advertisments

Categories

Archives

Technorati



Add to Technorati Favorites

Credits

Publisher: Kevin Aylward

Editors: Lee Ward, Larkin, Paul S Hooson, and Steve Crickmore

All original content copyright © 2007 by Wizbang®, LLC. All rights reserved. Wizbang® is a registered service mark. Wizbang Blue™ is a trademark of Wizbang®, LLC.

Powered by Movable Type 3.35

Hosting by ServInt

Ratings on this site are powered by the Ajax Ratings Pro plugin for Movable Type.

Search on this site is powered by the FastSearch plugin for Movable Type.

Blogrolls on this site are powered by the MT-Blogroll.

Temporary site design is based on Cutline and Cutline for MT. Graphics by Apothegm Designs.