Regarding the new Bush Administration tax cutting stimulus package, professor George Reisman warns,
Today, we have a credit crisis emanating from the collapse of the real estate bubble that the Fed launched in order to cope with the effects of the collapse of the stock market bubble that it had launched only a few years earlier. Now, in order to cope with the effects of the collapse of the real estate bubble, the government and the Fed are looking for yet another program of monetary “stimulus.” This time it’s to be in the form of cutting taxes while financing an undiminished, indeed, an increased amount of government spending by means of the creation of still more new and additional money.
Little surprise right? This is Compassionate Conservatism at its best: compassionately cut taxes to ease the very economic crisis their Keynesian tricks caused, only to increase the national debt, raising the inflation rate (by printing and circulating these unbacked - by gold - dollars), and ultimately crushing us with the debt, but more especially with the interest, both of which ultimately must be paid back.
When in doubt about all this, remember what J. Reuben Clark Jr., warned years ago: “interest never sleeps.”
Read: A Creditors’ Protection Bill - Mises Institute
The Liberty Letters are a project of the Latter-day Center for Moral Liberalism
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barkingdog said,
January 29, 2008 at 1:21 pm
Sean said,
Hey conservative politicians, how about tax cuts instead of these irresponsible and pandering “rebates”?
January 31, 2008 at 11:46 am