Sunday, March 01, 2009

Bailoutistan: Is Peter Orszag a Sentient Being?

The jury's still out, largely based on c omments like this:

'I just reject the theory that the only thing that drives economic performance is the marginal tax rate on wealthy Americans and the only way of being pro-market is to funnel billions and billions of dollars of subsidies to corporations,' Orszag said.”

Setting aside the obvious straw man of “the only way” - after all, there may be about 3 people who believe that marginal tax rates are the only driver of economic activity – to consign yourself to the notion that tax rates don't influence behavior is to announce you membership in the economic equivalent of the flat earth society.

The second part of this bit of nonsense - “only way of being pro-market is to funnel billions and billions of dollars of subsidies to corporations” is actually official Obama administration policy.

O.K., we're also sending billions to other Democratic special interest groups like Unions, the thugs at ACORN, and mortgage deadbeats and house flippers, but the essence of Obama's Bailoutistan policy is to take money from the middle class and give it to failures like Citi, Countrywide, GM, and AIG.

To say nothing of the government sponsored graft, corruption, and ineptitude of Fannie and Freddie.