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Why the Democratic Stimulus Package Works rss

The proposed tax cuts by Republicans fail to provide adquate stimulus for sectors of the economy that need it the most.

October 31, 2001

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Why the Democratic Stimulus Package Works

The Republican stimulus package does not make sense. They want to cut taxes, when the government is in such poor finical health. For companies who do not put anything beneficial out in to the economy—they do not hire new workers, or at least keep their existing employees.

It only makes sense to give tax breaks to those companies who actually work to improve the world, by employing new workers, reducing pollution, or significant contributions to the community. Tax breaks for those companies who dare to employee the unemployables (for inexpensive labor).

Even upgrading and modernizing security can be an economic stimulus if planed right. Contract with the unemployed, but otherwise satisfactory workers. Rebuild public infrastructure. These jobs will require hundreds of thousands of well paid employees. They will go out and spend their money in other industries, which will help to stimulate the economy.

Giving tax breaks to the rich does not make sense. They are not effected by the downfall in the economy the same way the little man is. Their wealth does not directly equal the wealth in employeeÕs pockets, in general it is a poor correlation.

The non-partisan Office of Budget Management gave the Republican stimulus an F. The Democratic one got a C (it could use improvements, but it needs to stay centrist enough so it can benefit all parties and be politically acceptable).

The SenateÕs Democratic Stimulus lead by Tom Daschle works. The Republican stimulus package is unproven, and an experiment, to say the least.

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