Tuesday, October 07, 2008

The Neoliberals Don't Have a Clue

Will Cutting
Taxes Really
Create Jobs Here?

By Carl Davidson

Every morning I take a look at Townhall.com to see what's on the minds of conservatives and the far right.

This morning, Lawrence Kudlow, host of CNBC’s “Kudlow & Company,” as well as a columnist and economics editor for National Review Online, was warning McCain to stick to jobs and growth in the debates, and set aside the 'guilt by association' attacks. He says:

"The financial crisis and economic downturn clearly have buried Sen. McCain in recent weeks. Some of McCain's supporters think he can turn the page on the economy Tuesday night and instead attack Obama on character and qualifications. That doesn't seem realistic.

" The recession economy and the financial crunch are front and center. Folks are asking: Can I get a loan? Will I have a job? Can I keep my house? Unfortunately, Sen. McCain's message overemphasizes government spending cuts, almost to the exclusion of stimulative and expansive tax cuts. This just doesn't seem like the right time for a government spending freeze, at least to the exclusion of other pro-growth policy levers. Sounds like too much root canal. More like Bob Dole than Ronald Reagan."

This shows he's on Planet Earth at least, but I posted a short reply, asking him 'Create Jobs Where? Here's the text:

Cutting taxes may indeed give corporations or venture capitalist more funds to invest in job creation, but what makes you think they would use it to create jobs HERE, and in areas where they're needed HERE, rather than for a higher return in, say, Malaysia?

As the neoliberals who gutted the mills here in Western PA put it, 'our job is to make money, not steel,' so they left us in the lurch to take their newly acquired funds and went off speculating in oil futures.

Creating jobs HERE requires green industrial policy with government guiding investment with both carrot and stick, and Obama is the only one talking up that program. Nice try, but no cigar. We've all learned a thing or two about markets, and to work well, they need an intelligent hand, as well as an invisible one.

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