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	<title>Comments on: Revisiting the Supply-Side Thesis</title>
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	<link>http://www.redstate.com/blackhedd/2009/01/06/revisiting-the-supply-side-thesis/</link>
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		<title>By: The_Gadfly</title>
		<link>http://www.redstate.com/blackhedd/2009/01/06/revisiting-the-supply-side-thesis/#comment-2577</link>
		<dc:creator>The_Gadfly</dc:creator>
		<pubDate>Tue, 06 Jan 2009 18:36:56 +0000</pubDate>
		<guid isPermaLink="false">http://www.redstate.com/blackhedd/?p=108#comment-2577</guid>
		<description>are tax cuts, real ones, not the phony sort that move one worker&#039;s income to someone who isn&#039;t employed, the quickest way to rebuild those balance sheets?

The more I think about it, the more I like the idea that instead of a Trillion Dollar stimulus package, we have a Trillion Dollar tax liability abatement program. Drop the tax rates across the board to generate a Trillion dollars in static tax reductions, and program it into people&#039;s and businesses income streams by changing withholding or actual tax payments as appropriate. Yes, the devil will still be in the exact details, but it seems to me this approach at least has a chance of working whereas the current plan is worse than none, as it also has a fair chance of making things worse.</description>
		<content:encoded><![CDATA[<p>are tax cuts, real ones, not the phony sort that move one worker&#8217;s income to someone who isn&#8217;t employed, the quickest way to rebuild those balance sheets?</p>
<p>The more I think about it, the more I like the idea that instead of a Trillion Dollar stimulus package, we have a Trillion Dollar tax liability abatement program. Drop the tax rates across the board to generate a Trillion dollars in static tax reductions, and program it into people&#8217;s and businesses income streams by changing withholding or actual tax payments as appropriate. Yes, the devil will still be in the exact details, but it seems to me this approach at least has a chance of working whereas the current plan is worse than none, as it also has a fair chance of making things worse.</p>
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		<title>By: Achance</title>
		<link>http://www.redstate.com/blackhedd/2009/01/06/revisiting-the-supply-side-thesis/#comment-2572</link>
		<dc:creator>Achance</dc:creator>
		<pubDate>Tue, 06 Jan 2009 18:18:21 +0000</pubDate>
		<guid isPermaLink="false">http://www.redstate.com/blackhedd/?p=108#comment-2572</guid>
		<description>that one of the best economies in history was the end of the World during the Bush Administration.  Even while they were busily buying flat screens, SUVs, and houses they couldn&#039;t afford, the majority of the Country was convinced that the economy was in terrible shape.

They can do a lot more than shave tenths.  Use your union friends&#039; job training and apprenticeship programs, suck a bunch of people into them and pay them what would be their UI except now they&#039;re in a re-training program.  Ergo, they&#039;re not unemployed any more.  If you want the unemploymetn rate to go up, you gin up some estimate of disaffected workers.  Right now they don&#039;t count unless they&#039;re actively seeking work through the unemployment office.  If they stop checking in, they go off the unemployed rolls.  The state agencies can do all sorts of stuff on their own, especially with a little help from their union friends.

Way back during the &#039;86 Oil Price Crash, Gov. Cowper, heavily backed by the unions, had told them all that he could not offer them a wage increase unless and until there was an increase in the Anchorage CPI, which was flat or even deflationary by some measures in those days.  So, the unions all ginned up this measure styled CPI less shelter  because housing devaluation was a major part of the drag on the state economy.  We wouldn&#039;t accept the measure.  We go to interest arbitration with them.  I don&#039;t know to this day whether my then-director was in league with the unions or got blindsided, but he calls the head of the state function that does CPI calcs and such.  So, here&#039;s a State manager called as a State witness and the first thing he does is trot out a bunch of graphs showing CPI-less shelter supporting the union rather than the Administration&#039;s position.  They got their wage increase from the arbitrator, citing inter alia &quot;the unrebutted testimony ...&quot;

Anyway, unions own departments of labor in the Blue states and have a lot of power over them in the unionized Red states.</description>
		<content:encoded><![CDATA[<p>that one of the best economies in history was the end of the World during the Bush Administration.  Even while they were busily buying flat screens, SUVs, and houses they couldn&#8217;t afford, the majority of the Country was convinced that the economy was in terrible shape.</p>
<p>They can do a lot more than shave tenths.  Use your union friends&#8217; job training and apprenticeship programs, suck a bunch of people into them and pay them what would be their UI except now they&#8217;re in a re-training program.  Ergo, they&#8217;re not unemployed any more.  If you want the unemploymetn rate to go up, you gin up some estimate of disaffected workers.  Right now they don&#8217;t count unless they&#8217;re actively seeking work through the unemployment office.  If they stop checking in, they go off the unemployed rolls.  The state agencies can do all sorts of stuff on their own, especially with a little help from their union friends.</p>
<p>Way back during the &#8217;86 Oil Price Crash, Gov. Cowper, heavily backed by the unions, had told them all that he could not offer them a wage increase unless and until there was an increase in the Anchorage CPI, which was flat or even deflationary by some measures in those days.  So, the unions all ginned up this measure styled CPI less shelter  because housing devaluation was a major part of the drag on the state economy.  We wouldn&#8217;t accept the measure.  We go to interest arbitration with them.  I don&#8217;t know to this day whether my then-director was in league with the unions or got blindsided, but he calls the head of the state function that does CPI calcs and such.  So, here&#8217;s a State manager called as a State witness and the first thing he does is trot out a bunch of graphs showing CPI-less shelter supporting the union rather than the Administration&#8217;s position.  They got their wage increase from the arbitrator, citing inter alia &#8220;the unrebutted testimony &#8230;&#8221;</p>
<p>Anyway, unions own departments of labor in the Blue states and have a lot of power over them in the unionized Red states.</p>
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		<title>By: IJB</title>
		<link>http://www.redstate.com/blackhedd/2009/01/06/revisiting-the-supply-side-thesis/#comment-2569</link>
		<dc:creator>IJB</dc:creator>
		<pubDate>Tue, 06 Jan 2009 17:43:22 +0000</pubDate>
		<guid isPermaLink="false">http://www.redstate.com/blackhedd/?p=108#comment-2569</guid>
		<description>...But I doubt they can turn 9.0% into 7.0%. 

Fiddling with the numbers at the margins won&#039;t be enough to help the Dems here. 

Short of completely making numbers up, nothing will help them on the unemployment rate (and just making numbers up would be easy enough to expose as fraudulent). 

Bottom line: Statistics only buttress what people already know - if the Obama Admin reports a 4.5% unemployment rate, but everyone knows a slough of unemployed and laid-off people in their circle of acquaintances (because the real rate is 9%), something won&#039;t jibe, and people won&#039;t automatically just go with Obama&#039;s numbers.</description>
		<content:encoded><![CDATA[<p>&#8230;But I doubt they can turn 9.0% into 7.0%. </p>
<p>Fiddling with the numbers at the margins won&#8217;t be enough to help the Dems here. </p>
<p>Short of completely making numbers up, nothing will help them on the unemployment rate (and just making numbers up would be easy enough to expose as fraudulent). </p>
<p>Bottom line: Statistics only buttress what people already know &#8211; if the Obama Admin reports a 4.5% unemployment rate, but everyone knows a slough of unemployed and laid-off people in their circle of acquaintances (because the real rate is 9%), something won&#8217;t jibe, and people won&#8217;t automatically just go with Obama&#8217;s numbers.</p>
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		<title>By: Achance</title>
		<link>http://www.redstate.com/blackhedd/2009/01/06/revisiting-the-supply-side-thesis/#comment-2568</link>
		<dc:creator>Achance</dc:creator>
		<pubDate>Tue, 06 Jan 2009 17:36:47 +0000</pubDate>
		<guid isPermaLink="false">http://www.redstate.com/blackhedd/?p=108#comment-2568</guid>
		<description>Much of what the USDOL says it is is based on what the various state departments of labor say it is in their state.  It is nothing like a precise measure, there are often incentives for the states to jack it up or reduce it and there is plenty of room at the BLS level to manipulate the unemployment rate, the inflation rate, and other well-known and influential indicators of economic health.  Figures don&#039;t lie but liars do figures.</description>
		<content:encoded><![CDATA[<p>Much of what the USDOL says it is is based on what the various state departments of labor say it is in their state.  It is nothing like a precise measure, there are often incentives for the states to jack it up or reduce it and there is plenty of room at the BLS level to manipulate the unemployment rate, the inflation rate, and other well-known and influential indicators of economic health.  Figures don&#8217;t lie but liars do figures.</p>
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		<title>By: Francis Cianfrocca</title>
		<link>http://www.redstate.com/blackhedd/2009/01/06/revisiting-the-supply-side-thesis/#comment-2567</link>
		<dc:creator>Francis Cianfrocca</dc:creator>
		<pubDate>Tue, 06 Jan 2009 17:15:12 +0000</pubDate>
		<guid isPermaLink="false">http://www.redstate.com/blackhedd/?p=108#comment-2567</guid>
		<description>n/t</description>
		<content:encoded><![CDATA[<p>n/t</p>
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		<title>By: IJB</title>
		<link>http://www.redstate.com/blackhedd/2009/01/06/revisiting-the-supply-side-thesis/#comment-2562</link>
		<dc:creator>IJB</dc:creator>
		<pubDate>Tue, 06 Jan 2009 15:53:16 +0000</pubDate>
		<guid isPermaLink="false">http://www.redstate.com/blackhedd/?p=108#comment-2562</guid>
		<description>The top-line statistic that (uninformed) voters look at first is the national unemployment rate. 

Come 2010, the unemployment rate is very likely to be 9-10% (at least, that&#039;s what the &quot;experts&quot; are predicting - I have a sneaking suspicion that it&#039;ll be even higher than that), and that&#039;s with or without Obama&#039;s useless &quot;Roads to Nowhere&quot; stimulus. 

If unemployment is still over 9% (or, likely, even over 8%) by the winter/spring of 2010, the Dems will get slaughtered at the polls that year. 

Watching the Dems try to explain the high unemployment rate a year from now, even after the passing of their &quot;stimulus&quot; package by Feb. of 2009, will be pure popcorn time...</description>
		<content:encoded><![CDATA[<p>The top-line statistic that (uninformed) voters look at first is the national unemployment rate. </p>
<p>Come 2010, the unemployment rate is very likely to be 9-10% (at least, that&#8217;s what the &#8220;experts&#8221; are predicting &#8211; I have a sneaking suspicion that it&#8217;ll be even higher than that), and that&#8217;s with or without Obama&#8217;s useless &#8220;Roads to Nowhere&#8221; stimulus. </p>
<p>If unemployment is still over 9% (or, likely, even over 8%) by the winter/spring of 2010, the Dems will get slaughtered at the polls that year. </p>
<p>Watching the Dems try to explain the high unemployment rate a year from now, even after the passing of their &#8220;stimulus&#8221; package by Feb. of 2009, will be pure popcorn time&#8230;</p>
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		<title>By: Stan(ley) Pruss</title>
		<link>http://www.redstate.com/blackhedd/2009/01/06/revisiting-the-supply-side-thesis/#comment-2555</link>
		<dc:creator>Stan(ley) Pruss</dc:creator>
		<pubDate>Tue, 06 Jan 2009 14:08:38 +0000</pubDate>
		<guid isPermaLink="false">http://www.redstate.com/blackhedd/?p=108#comment-2555</guid>
		<description>Hasn&#039;t most of the money put out so far been in the form of loans or purchase of preferred shares?  Isn&#039;t the expectation that these will return interest and be repaid to the treasury?  Isn&#039;t this qualitatively different from expenditures for infrastructure or tax cuts?</description>
		<content:encoded><![CDATA[<p>Hasn&#8217;t most of the money put out so far been in the form of loans or purchase of preferred shares?  Isn&#8217;t the expectation that these will return interest and be repaid to the treasury?  Isn&#8217;t this qualitatively different from expenditures for infrastructure or tax cuts?</p>
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