Stimulus vs. Tax Cuts

As we all know, Republicans are willing to extend the Bush tax cuts for the rich (without paying for them), and yet they’ve filibustered every effort to stimulate the economy, extend unemployment benefits and create jobs. Their reasoning? Tax cuts stimulate the economy, they say, but stimulus spending — specifically ARRA and any additional stimulus spending — doesn’t work.

Of course they’re extraordinarily wrong.

FACT: Every dollar spent on unemployment benefits creates $1.61 in economic growth.

FACT: Every dollar spent on the Bush tax cuts only creates $.32 in economic growth — that’s a 68 cent loss on investment.

Via USA Today, here’s the return on investment chart from Moody’s Analytics. Hardly a left-wing outfit.

stimulus_vs_taxcuts.jpg

I know the Republicans can do the math. So it’s not a stretch to accuse them of supporting the Bush tax cuts and opposing more stimulative actions because they’re interested in sabotaging the economy and, thus, the president. This has to be shouted into every TV camera every day by every member of the administration starting now.

(big HT Joe Wosik)

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