July 15, 2009

The Depression Is Coming! The Depression Is Coming!

Justin Katz

It really is astonishing. With the economy flailing and the trends in job losses disappointing even the whiz kids of the Obama administration, despite its having whipped out the "stimulus" credit card, with "cap and trade" energy policy seeking to raise the cost of doing business (and of simply living), the Democrats are hitting the accelerator pedal on their hybrid healthcare suicide car:

The liberal-leaning plan lacked figures on total costs, but a House Democratic aide said the total bill would add up to about $1.5 trillion over 10 years. The aide spoke on condition of anonymity to discuss the private calculations. Most of the bill's costs come in the last five years after the 2012 presidential election.

The legislation calls for a 5.4 percent tax increase on individuals making more than $1 million a year, with a gradual tax beginning at $280,000 for individuals. Employers who don't provide coverage would be hit with a penalty equal to 8 percent of workers' wages with an exemption for small businesses. Individuals who decline an offer of affordable coverage would pay 2.5 percent of their incomes as a penalty, up to the average cost of a health insurance plan.

Pay down. Employment down. Prices up.

Note that admission that the legislation's cost structure attempts to move the bill past the next presidential election. Consider also that the bulk of the stimulus money is scheduled for dispersal next year — an election year. One doesn't have to be partisan to wonder whether economic hardship and civic anxiety are being tolerated in the service of a planned political script. A few eggs must be broken, after all, in order for the Left to make the governmental omelet that the country doesn't yet know it needs.

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But thank God we have 12-20 million illegal aliens in the US sucking us dry.

What would we do if those 8 million illegals who have American jobs left?

Maybe the Depression might come but at least it would be Americans in the soup lines.

Posted by: Roland at July 15, 2009 11:00 AM

Hey, standing in a soup line is one of those jobs that Americans won't do anymore, right?

Posted by: Tom W at July 15, 2009 11:25 AM

Like women's hem lines, a sure sign of a coming depression is the stories the ProJo decides to give ink to. The "Providence Plantations" story, the "human trafficking" story. All stories that excite the emotions but offer little in the way of enlightenment.

Posted by: Warrington Faust at July 15, 2009 12:50 PM

Another thought on "stimulus", ignoring the fact that most stimulus money seems to be going to salvaging failed governments.

The "cure" for a depression is confidence. A large pool of the taxpayers moeny is not sufficient. Without confidence people do not sign 30 year mortgages, but they do squirrel money away under the mattress. Bankers retreat. I see little going on that will give people the idea that the clouds are breaking.

Posted by: Warrington Faust at July 15, 2009 12:54 PM

You mean that "HOPE" that folks voted for last November hasn't translated into confidence?

Gee, I'm shocked ... SHOCKED!

Posted by: Tom W at July 15, 2009 2:13 PM

"Depressions" are difficult things to understand. When I studied Economics, it now seems like that was before the Civil War, it was pointed out that in the "Great Depression" the money didn't disappear, it went into hiding. The guy whose stock crashed in '29, had given moeny for it in '28. That money was probably still around. It was made clear to us that SMoot-Hawley and a lot of other governmetn action prolonged the Depression, it lasted here about 5 years longer than it did in Europe.

I am fearful though. I am reminded of the situation in Japan during the 90's. At that time, Tokyo was mortgaged to a higher value than the entire United States. The notes came due and no one could pay or refinance. The banks failed, etc. Japan is still in "recovery". They build their cars here because they cannot afford to build them in Japan and be competitive in price.

In any case, I don't think "soak the rich" is the answer.

Posted by: Warrington Faust at July 15, 2009 11:06 PM
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