It’s finally up on YouTube:
Congressman McKeon never strayed far off the message he’s been repeating over the last year: the stimulus was bad and went to crazy things like bike trails and Democratic operatives and the way to fix the economy is to give tax cuts and incentives to small businesses. I particularly liked how he mocked the official name of the bill at the beginning of the clip and had to mention that policemen, firemen and teachers whose jobs were saved by the stimulus last year were all union members.
In contrast, Councilmember Laurie Ender talked a bit about how the City had spent stimulus money. She said that the millions of stimulus dollars came with strings attached; most of it had to be spent on “shovel ready” projects and that’s why the City has put up those ARRA signs all over town as they repave and resurface roads, projects that are relatively easy to kick off.
She acknowledged that Santa Clarita is better off than the county and the rest of the state, but she says she still feels as if we’re “on the brink” of economic collapse.
Then she said this about the current state of the economy and what the City is doing about it:
We’re now at the point of trying to keep businesses from closing. And so having to wait another year or two years for money to come down the line for shovel-ready is not keeping businesses open. It’s not going to help AV in the long run, it’s not going to help Bristol Farms that is closing because they can’t stay open in this economy.
She’s right about that. The United States isn’t in the practice of handing money directly over to private companies (well unless you’re a super bank in NYC I suppose) without expecting something in return.
But does it necessarily follow that if we were to give tax breaks to AV Equipment or even Bristol Farms that they would stay open and hire more people? What level of tax breaks would it take for Mr. Cruikshank to hire back the 14 people he’s laid off? What red tape should we have cut to save Bristol Farms?
And also, hasn’t some of AV Rental’s equipment been used in the shovel ready projects around town?
You can review some of the projects stimulus funds have helped pay for in our city by clicking here.
This is like watching the twilight zone.
Laurie Ender thanks Buck for sending money SCV’s way (uhh… well, he voted “no” but that’s a technicality).
A couple of minutes later, Buck says “Government needs to get out of the way.”
There aren’t any more sides of the mouth left to talk out of.
I wonder when Endor is going to promote a statue of Buck in the middle of Newhall.
So Jeff you seem incredulous that McKeon says that the way to stimulate the economy is through tax cuts and incentives to small businesses. Don’t you realize that this is proven economic science? President Kennedy proposed tax cuts to stimulate the economy in December of 1962. They were implemented by Johnson in 1964 and they worked. Reagan and G.W. Bush’s tax cuts also worked to stimulate the economy.
The federal government ‘investing’ money through ‘stimulus’ is nothing more than borrowing from our childrens future for the temporary jobs it creates today. All of the jobs in the projects above go away when the ‘stimulus’ goes away. Giving tax cuts to the people (yes even the rich) and incentive to small business stimulates the demand side of the equation and leads to sustained growth and jobs, and improves the economic picture for all. Again – proven science – economics 101.
Additionally it is fundamentaly wrong for the federal government to be taking money (or borrowing from the future) to then re-dole it to local projects. These projects should be done through local funding so the money is closer to the end use. Roadway projects should be funded through gasoline taxes.
You’re welcome in advance for the economics lesson. No charge. But since you are a lover of a larger federal government and the soft tyranny it brings with it I doubt this will sink in anyway.
Jim:
“Again – proven science – economics 101″
In Economics 101 I learned that when demand falls off a cliff, it is up to government to make up the demand by spending. This is not some crackpot theory. It’s Keynesian theory, and it’s been used by every president since the 1930s.
The Trickle Down economics you talk about- that was not taught to me. That’s why I’m asking Buck to tell us how much of a tax cut it would take for AV to rehire the people they laid off.
If you’re such an expert, do you know? How much would we have to cut from Mr. Cruikshank’s tax burden in order for him to hire 14 people back?
“But since you are a lover of a larger federal government and the soft tyranny it brings with it I doubt this will sink in anyway.”
Anthem Blue Cross just raised premiums on individual health care policy holders by 39%. Obama has raised taxes on you by how much exactly? And yet you call us soft tyrants?
My friend I don’t get it
Keynsian (priming the pump)theory has been regarded by many modern economists as actually prolonging the Great Depression. The presidents I mentioned were not using Keynsian economics.
While Obama has not raised taxes directly (as of yet), he is imposing a hidden tax, in terms of almost certain inflation, driven by his outrageous spending. Inflation will be a tax, and possibly a huge one, on all of our 401Ks.
I don’t get it either. How can so many of the younger ‘progressives’ feel as they do when they will be hurt the most in the long run.
At this moment, I’m more concerned about the local and state economy. California usually leads the rest of the country in its economic state anyhow.
We’re in serious trouble.
Crisis=Opportunity
Anyone else ready to hit the reset button on this thing?
It might be painful, but the proverbial patient is on the table.
ps Randles’ piece in TMS validated my earlier theory that amnesty would be a net $16B financial benefit to the state tax rolls.
Jim- what in the federal budget would you cut?
I know you would never raise taxes, so you have to cut.
“Most of the money we’re investing as part of this plan will get out the door immediately and go directly to job-creation, generating or saving 3 to 4 million new jobs.”
Dept of education
Dept of energy
Guess how much that would save?
The ‘Department of Energy’ Was instituted on 8-04-1977 TO LESSEN OUR DEPENDENCE ON FOREIGN OIL.
Hey, pretty efficient, huh?????
AND NOW IT’S 2010, 33 YEARS LATER … AND THE BUDGET FOR THIS NECESSARY DEPARTMENT IS AT $24.2 BILLION A YEAR! IT HAS 16,000 FEDERAL EMPLOYEES AND APPROXIMATELY 100,000 CONTRACT EMPLOYEES AND… LOOK AT THE JOB IT HAS DONE!
THIS IS WHERE YOU SLAP YOUR FOREHEAD AND SAY ‘WHAT WERE WE THINKING?’
The dept of education has about 5,000 employees and a budget of 68 billion
That’s $92 billion. Still have to cut more John. So lay it out
But that sure would be a great start and in 10 years would have the worthless POS stimulus paid off
Absolutely the Department of Education should be eliminated. there is no reason the Federal government should be involved in education, it is a local issue.
How about reversing everything in the so called “stimulus” that has not yet been spent?
The Federal government should only be doing that which only a Federal government can do – national defense, for instance. Everything else should be cut.
I still get a kick out of this famous quote….
“Most of the money we’re investing as part of this plan will get out the door immediately and go directly to job-creation, generating or saving 3 to 4 million new jobs.”
Is there anyone out there that wants to try and defend it?
Jim: Keynsian (priming the pump)theory has been regarded by many modern economists as actually prolonging the Great Depression. The presidents I mentioned were not using Keynsian economics.
Indy: can you name just one of those economist?
Likewise, the Kennedy tax cuts provided only perhaps 5% of the visible growth the other 95% was from an expansion of the money supply.
But even more important than that, is the fact that tax cuts don’t offset spending for government programs . . . thus the $12 trillion in debt with Bush adding $5 trillion over his 8 years including the $800 billion to fight both wars with deficit spending.
John Adams: The dept of education has about 5,000 employees and a budget of 68 billion
Indy: what portion of the money stays in Washington and what portino goes to the schools?
John Adams: “Most of the money we’re investing as part of this plan will get out the door immediately and go directly to job-creation, generating or saving 3 to 4 million new jobs.” Is there anyone out there that wants to try and defend it?
Indy: yes, go here:
http://scvtalk.com/forum2/index.php/topic,3446.0.html
Are you learning anything from these very excellent conversations Jeff?
What’s to learn? Nothing new under the sun. Republicans always say cut taxes for the rich and business. Liberals always say increase spending.
You are not original and neither am I.
Indy:
(in case you’re still looking at this thread)
There are numerous articles on the failure of Keynesian economics on-line. Here is a pretty good one:
http://www.thefreemanonline.org/featured/henry-hazlitt-and-the-failure-of-keynesian-economics/
http://online.wsj.com/article/SB10001424052748703481004574646551469288292.html?mod=WSJ_Opinion_LEFTSecondBucket
I have been able to obtain never before seen video of indy at the local mall. My source wishes to remain private. So I can’t name who confirmed this is in fact indy.
http://bitterqueen.typepad.com/friends_of_ours/2010/02/two-obama-voters-on-an-escalator.html
John Adams:
The WSJ piece is awesome. Even though I have only read about half so far, it is a concise and understandable explanation of why ‘stimulus’ does not work. I’ve saved it as a favorite so I can go back and send it to others.
Thanks!
This video wasn’t even worth watching, I stopped at 3:57 after Council Woman Ender discusses road improvements, I see these road improvements on McBean, Wiley and Orchard Village.
Perfectly good roads and center dividers with stamped concrete. All torn up and bushes and vegetation put there.
1) Aren’t we in a drought?
2) Isn’t this creating an additional ongoing cost to the tax payers?
I guess this helped keep some local jobs, THE CITY’S EMPLOYEES!
This stimulus helped only one employer folks, ALL LEVELS OF GOV’T
@NickelDime: Keynsian, really?
I looked that up in the dictionary and it said, “see Socialism”.