RightWave

So, scuttlebutt is that the next Obama-led “economic stimulus package” to come out of Congress may well include another increase in the minimum wage.

Really?

As if the first one wasn’t bad enough.  Let’s think this one through, shall we?

So, the economy’s in a downturn.  Employers are already making labor cuts to save costs and keep businesses afloat (and costs down for the consumers).

The government’s response?  Make labor more expensive.

Well, duh.  Cuz, you know, that makes sense.

I’m no conspiracy theorist, but if you follow the path of results down from this plan, you end up with more government payouts being funded by fewer actual taxpayers (likely paying much higher percentages of their incomes to the government).  That’s not sustainable!  Is the goal to have every industry crawling to the government for a bailout?

Anyone else thing this is sounding awfully Randian in how it’s playing out?  I’m certainly no die-hard objectivist, but come on.  I know the lefty’s are bleeding hearts, but surely they haven’t lost all capacity to process logical outcomes?

Oh, well, maybe so.

All I can say, folks, is gird up.  Get ready for the fight.  Even though things look bleak, it’s important that our side not give up - that we keep fighting and making our case to the American people and make it in a way that’s personal and folks can relate to.  If we slink away and resign ourselves to the fact that everything’s going to hell in a handbasket, well, it will.  And no one will be there to pick up the pieces on the other side.

To quote the great Winston Churchill:

“Never give in. Never give in. Never, never, never, never–in nothing, great or small, large or petty–never give in, except to convictions of honor and good sense. Never yield to force. Never yield to the apparently overwhelming might of the enemy.”

Or, if you prefer:

So, the IRS is going to give you a $600 check (or $1,200 if you’re married) in the form of a “tax rebate.”  Sounds great, right?

 Well, never mind the calculation you did in your head if you’re like me of how much it cost to mail out the notices letting you know you’re getting a refund.

 And, never mind the fact that a long-term tax cut would have a much more significant effect on the strength of the economy.  Or even put aside the fact that this is really just an advance on your 2008 tax return not found money.

What really is perplexing is this article:  Tax Rebates Could Be Ticket to Vacation

And mostly this passage:

Morse cites a November study by three economists from the Federal Reserve Bank, the University of Nevada-Reno and the University of Pennsylvania’s Wharton School examining consumer habits from a similar though smaller rebate in 2001. The researchers tracked activity of 75,000 credit card accounts.

The study found that many consumers used the rebates to pay down credit card debt, just as pre-rebate surveys suggested they would do. But three to nine months later, they used their newly freed-up credit to buy even more. On average, they spent 40 percent more than the original amount of their rebate.

…cuz that’s what we need. MORE credit card debt.  I know it sounds like it’s good for the economy for people to spend more, but isn’t this a pretty shaky foundation?

(by the way, I’ve been to Dollywood in Pigeon Forge, and they don’t need tax rebates to spur their attendance!  Didn’t you see Dolly on American Idol last week?)

Why don’t we just do the right thing and continue cutting marginal tax rates.  Better for the economy, better for the reduction in the growth of government and, well, just better for taxpayers.  Oh well.  Maybe next time.