After months of denying problems with the US economy, it looks like Bush has finally given in- kind of.
On Monday the president’s spokesman said: “The president does believe that over the short term, to deal with the softening of the economy, that some boost is necessary.”
So I’m now watching Federal Reserve Chairman Ben Bernanke on CNN talking about the crappy economy and recommending a quick, short-term solution to stimulate the economy.
Bernanke specifically said that the stimulus must be “timely, targeted, and temporary“. If it comes too late or lasts too long it will end up having the opposite effect- possibly screwing up any potential economic recovery.
Of course, the Republicans are pushing for a solution that meets none of these criteria: Making Bush’s tax cuts permanent.
- “Temporary”, I think, is the exact opposite of permanent. So they failed with that one.
- The tax cuts don’t expire until 2011- so they certainly aren’t “timely”.
- And the only people that are helped by the tax cuts are the rich- who don’t need the money anyway; hardly the “targeted” solution Bernanke asked for.
Note to Republicans: tax cuts can not solve all problems.