For those of you who might think that DailyKos doesn't matter or that bloggers are ignored by the powers that be, I've got some interesting news. As many of you know, for several weeks, I have been advocating a Keynesian stimulus for consumer demand, which constitutes 70% of our economy.
Specifically, I have advocated a tax incentive for buyers of new cars and houses. While I would have limited the incentive to cars made in North America and doubled it for the most fuel efficient in each class, my main point has always been to clear the gluts of unsold inventory on the market so that production increases and workers return to their jobs.
Of course, I never thought my ideas would get anywhere because they are not politically correct. Well, guess what:
WASHINGTON – The Senate voted Tuesday to give a tax break to new car buyers, setting aside bipartisan concerns over the size of an economic stimulus bill with a price tag approaching $900 billion. The vote was 71-26 to allow many car buyers to claim an income tax deduction for the cost of automobile sales taxes and interest payments on car loans.
Sen. Barbara Mikulski, D-Md., said the plan would aid the beleaguered automobile industry as well as create jobs at a time the economy is losing them at a rapid rate. "I believe we can help by getting the consumer into the showroom," she said.
Associated Press, 2/3/09
And yesterday, there was more good news:
Democrats were prepared to offer amendments to add $20-$30 billion more for infrastructure programs such as roads, bridges, mass transit and water projects, according to Sen. Charles Schumer, D-N.Y.
Schumer also said Democrats would support a GOP-backed idea to double a home buyers tax credit from $7,500 to $15,000 and make it available to all home buyers instead of those purchasing their first home.
Associated Press 2/2/09
So finally we are all Keynesians now, and it only took 73 years! The only downside is that the amounts of the tax breaks are too small. We need to step up the stimulus to a full employment budget, i.e., an expenditure that would get everyone back to work.
But at least the Democrats now, unlike 1937, are not trying to balance the budget by cutting spending. Let's hope Pres. Obama gets on board the Keynesian express and goes full throttle.