Short Sighted, Long Lines

By Amit Singh | Saturday, November 7th, 2009 | Policy

The line is getting longer and I’m not talking about the one for the Swine Flu vaccine.

After spending an estimated $3,500,000,000,000 on a variety of bailout schemes including TARP and emergency loans from the Fed, the unemployment rate still hit 10.2%, the highest in over 25 years. Meanwhile, the US collected less than one tenth of the bailout (i.e. $300B) in corporate taxes in 2008. Imagine that instead of devaluing the money in everyone’s wallet with inflation, the government eliminated the corporate income tax which is currently the second highest in the world? How many multinational companies would relocate to the US? How many factories would return to our soil? How many jobs would be created?

Of course there is simply an ideological difference between myself and those who believe the government can be the solution. This is not simply a knock on the Democrats in power, I am sure if Republicans had the White House and Congress in the current economic situation, they would not believe in the Free Market either. But I will fault the Democrats for continuing to propose increased spending in time where we simply cannot afford it. How many more people will join the unemployment lines in pursuit of these programs?