I am on page 700 something on Schlesinger's A Thousand Days. There is a quote there, which i think is very practical and directly relevant to today's America's political situation, and it's about a tax cut. When Kennedy thought that a tax cut was politically feasible and he was on the verge of implementing it at the supportive advice of his economic team, J.K. Galbraith (a renowned diplomat and respected economist) mentioned how putting money directly into people's pockets would only expand consumer supply line, but would not in effect provide any advantages on the infrastructures or other public facilities. He says that consumer goods would rise as a result of tax cut, but nobody would want to spend money where the garden looks filthy, the air is unbreathable, or the roads filled with holes. Contrary to the few sentences in which Galbraith was quoted, i find his ideas tremendously sound. I have thought about why the Republican party in America persistently seek a tax cut as a way to stimulate the economy and it strikes me somewhat surprising, though not unexpected, that its not so much as providing stimulus for the businesses as a means to ensure the efficiency of top-to-bottom economy, but expanding consumer supply line. If we have a tax cut, we will have more money to buy TV's, cars, phones, and other privileges. But the infrastructures would remain unscathed. None of the tax cut money would be put to good use for long-term benefits. It is all short-term and individually centered.
A woman in Facebook wrote how socialism is a system that collectively shares misery. I tried to highlight the flaw in endorsing capitalism blindly. Clearly, she was not interested in healthy discussion as she hastily wrote that everyone can have their own opinion as to what federal government should support or not, in terms of where and how the money should be distributed based on the prevailing economic system. This is absurd. All i am trying to imply is that we should not be too obedient to a particular system without first answering some questions that best reflect all classes of society.
Monday, December 28, 2009
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