Thursday, January 24, 2008

Gerlach Wrong on Stimulus Policy

An Ideal Candidate for the "Gerlach" seat would immediately begin putting heat on the "orange sweater guy" for statements like this:

Gerlach Statement on President Bush’s Economic Stimulus
Proposal
Washington
Congressman Jim Gerlach (PA-06) made the following statement today following President Bush’s proposal on how to stimulate the economy and Speaker of the House Nancy Pelosi’s comments to work in a bipartisan manner:
"I commend the President and Speaker of the House for recognizing that our leaders need to work together to continue the growth of our economy, and reinvigorate the American workforce. Federal and state treasuries may rise and fall, but history has consistently shown that a low tax rate for individuals and businesses provides a necessary stimulus to spur growth and revenue. Good ideas on how to generate more prosperity are found on both sides of the political aisle. It is my hope that Speaker Pelosi will keep her word and reach out to Republicans, keeping politics on the side, to help all Americans. Working together, Republicans and Democrats can continue to ensure that there is a brighter, more prosperous Pennsylvania for everyone as we move forward."

This is classic Gerlach. Phony tone of bi-partisanship, coupled with a veiled hint of classic conservative movement policy commitments. He sneaks in his observation that "history has shown that a low tax rate for individuals and businesses provides a necessary stimulus to spur growth and revenue." In context, this is a stupid statement, even if you believe the most credible version of the supply-side credo Gerlach is mouthing. It's stupid because a stimulus plan is a counter-cyclical temporary policy, not a policy of incenting entrepreneurship or business investment, or any of the other classic supply-side assertions about the effect of low tax rates. He is signalling to his base that he is still a true believer in making Bush's tax cuts permanent and in larding the stimulus with largely wasteful "incentives" for business investment, whose time lag and uncertainty fail the "targeted" and "temporary" tests of effective stimulus policy that are the basis for the current bi-partisan consensus. Remember, the Left is being asked not to push for classic public government-centered public works plans off the agenda. Republicans like Gerlach should be called out and told to keep their policy preferences in the closet in the name of getting something done to lessen the severity of the economic downturn.

Hey publicly mentioned candidates (Bob, Bob, Richard or Michael) any comment?

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