Newsweek columnist Robert Samuelson (9/18/10) has had it with the way we discuss economics:
With every election, we descend into soundbite economics. Rhetorical claims grow more partisan and self-serving…. These debates confirm the dreary state of economic discourse.
He points his finger at both the right and the left, but then goes on to basically endorse the right-wing critique of Obama’s policies—as in, “Confidence is crucial to stimulating consumer spending and business investment, and Obama constantly subverts confidence.” As an example, Samuelson writes that “the moratorium on deepwater drilling kills jobs.”
It’s refreshing tosee that he’s not stoopingtopartisan soundbites! A recent White House report showed that job loss due to the moratorium is much lower than was expected, and that many of those job losses will be temporary. As Grist noted (9/17/10), the Wall Street Journal reported that Louisiana parishes tied to the drilling industry saw some job increases.
Samuelson goes on to refer to Obama’s plan to let the Bush tax cuts expire for the wealthy another sign of “his delusional approach.” Again–good to see that he’s avoiding partisan soundbites. The problem, as Samuelson sees it, is that the tax cuts will hurt small businesses–the tax increases will “affect 725,000 returns with about $400 billion of business income.” As Dean Baker pointed out, the tax hikes for the vast majority of those considered small business will be small:
The Joint Tax Committee of Congress projected that the average tax hit on tax filers with incomes between $200,000 and $500,000 (the vast majority of the affected small businesses) would see an increase in their taxes of just $500. This is unlikely to have much impact on their hiring and growth. It is also worth noting that the higher Clinton era tax rates were in place in the late ’90s, when the economy was generating more than 8,000 jobs a day.
Samuelson wraps up the pieceby noting that our “campaign discourse is strangely disconnected from underlying economic realities.” Is he talking about his column?
woodward bernstein
the underlying realities of samuelson’s discourse is keeping the rich rich….big surprise….
michael e
The discourse should be simple. Directed at Obama only.”Will you sir spend every waking moment taking the chains off business, so as to launch on a recreation of wealth the likes of which the world has never seen?Doing same to personal wealth as you would corporate?Do you believe that that this massive inflow of blood into the Us work force is better than drawing from an ever weakening economy a few drops from the top ?Do you throw down keynesian economic policies for robust capitalist free market TNT?
If not…I believe the saying is/ Join us….Lead us…..Or step out of the way.
howard sosbee
You can always count on Samuelson to tell only that half of the story that makes his point. There is always much more to tell that usually refutes it.
woodward bernstein
uh…our current economic reality isn’t a supply side problem…[lots of major corporations are sitting on tons of cash], it’s a demand problem….it isn’t the presence of non-existant “chains” on business that’s the problem…it’s lack of customers with disposable income….the “job creators” have had almost ten years of near-historically low tax rates and where are the jobs?
Jacques Cousteau
Watching michael e struggle with basic economics and tax policy is like watching a starfish working with a can opener.
michael e
W and B.I really think the problem can not be looked at as a strict debit and credit accounting.In a business if you are wise….You would have certain amount of cash to get you through the rainy days.Enough to cover payrolls etc.We have a government preparing to impose health care on the business world and we still are not sure what that means..We have a Congress just gone that has left what shall be-the tax structure in 4 months up in the air.Loans are not being asked for and in many cases not given. Uncertainty is death to business.If you could make the blanket statement that most businesses are rolling in it due to bams administrations hospitable and warm relations with business I would for the first time call you a liar.You are often wrong living on retread articles and fact with limited tunnel vision but truthfully……has he been good for this economy?In ant minute way you can discern?Read these blogs.His army hates wealth,success,and capitalism.
TimN
Yeah, Woodward Bernstein, take that! You, you, . . . liar! With all your crazy facts and figures and good sense, and reasonableness, and, oh, nevermind.