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Baraka_Guru · 09-24-2010, 03:20 PM

I'm not going to keep talking economics 101 in this thread, ace, because it's not exactly related to the topic. I will finish with this: consumer spending is a key component of economic growth. Without it, "supply and demand" simply becomes "supply."

This is not to downplay the importance of what you're talking about. Innovation and emerging markets are generated from the seed that is "the guy with the idea." But when you're talking about economic recovery from a recession, there is a bigger picture not to be overlooked.

* * * * *

In other news, the Republicans have joined the Tea Party:

Quote:

Republicans present ‘Pledge to America’ agenda
Richard Cowan
Sterling, Va.— Reuters
Published Thursday, Sep. 23, 2010 7:34PM EDT
Last updated Thursday, Sep. 23, 2010 7:35PM EDT

Republicans in the U.S. House of Representatives unveiled their campaign agenda on Thursday – a “Pledge to America” to create jobs, cut taxes and shrink government – as they head for big gains in November’s congressional election.

Boosted by voter disappointment at President Barack Obama’s handling of high unemployment and the soaring budget deficit, Republicans look set to pick up dozens of seats in the House, with a real chance of winning control.

Losing the Democratic majority in the House would impede Mr. Obama’s domestic agenda as the economy recovers slowly from its worst downturn since the 1930s. Opinion polls show Democrats should keep hold of the Senate but with a weaker majority.

Dressed in open-necked shirts, Republican House leaders unveiled their manifesto at a lumberyard and hardware store in Sterling, Va., near the U.S. capital.

“Republicans have heard the American people,” said John Boehner, the party’s leader in the House. “We are very serious about implementing our pledge.”

Robert Gibbs, Mr. Obama’s press secretary, derided the agenda as “the same litany or catalogue of failed policies that got us into this mess.”

Later in the day, the Democratic-controlled House sent legislation to Mr. Obama aimed at helping small businesses by boosting lending and providing $12-billion in new tax breaks that Democrats said would not add to the deficit.

All Republicans, except one, voted against the bill.

The agenda is reminiscent of “The Contract with America” that House Republicans announced on the steps of the Capitol in 1994. That manifesto helped them win control of the House during the second year of Democrat Bill Clinton’s presidency.

While short on specifics, the new Republican plan calls for $100-billion in annual savings by scaling back federal spending to 2008 levels – with exceptions for the elderly and U.S. troops – and ending government control of mortgage giants Fannie Mae and Freddie Mac.

Republican House leaders also vowed to stop “job-killing tax hikes” and allow small-business owners to take a tax deduction equal to 20 per cent of their business income.

Carl Fritsche, president of the Tart Lumber Co. that played host to the event, was skeptical of the deduction, echoing a complaint by Democrats that more tax cuts could swell the deficit.

“I wasn’t looking for that because, frankly, we need to cut the deficit. I’m not sure how we would pay for that,” he said.

With the Republican announcement, much of which was leaked to the media on Wednesday, battle lines for the Nov. 2 election have become clearer.

The Republicans, who lost control of Congress in 2006, aim to cut the projected $1.3-trillion deficit with immediate spending reductions. But their call for tax cuts would make paring the deficit more difficult.

Democrats are more cautious about spending cuts now, fearing that could stifle the economic recovery.

Under pressure from the conservative Tea Party movement to slash the size and cost of government, the Republicans promised to repeal Mr. Obama’s landmark overhaul of the health-care system and eliminate unspent funds from his $814-billion economic stimulus program.

If there are tensions between establishment Republicans and Tea Party activists, Mr. Boehner tried to ease them. After his news conference, he spoke to well-wishers outside Tart Lumber and asked whether he could keep a tea kettle one was holding.

The Economic Policy Institute, a liberal-leaning think tank, estimated the new Republican plan would reduce the deficit by 5.5 per cent but cause gross domestic product to shrink by 1.1 per cent, leading to a loss of 1.1 million jobs.

Mr. Obama is unlikely to sign into law many, if any, reforms proposed by House Republicans. But they set markers in what could be a rough fight in the final two years of Mr. Obama’s term if Republicans do as well as predicted in November.

“It’s more of a campaign document than something they’re going to be able to push through,” said John Canally, an investment strategist with LPL Financial in Boston.

Reuters

Republicans present "Pledge to America" agenda - The Globe and Mail

Well, more accurately, the Republicans have issued the Pledge to America, which is based on their Contract with America, which formed the basis for the Tea Party's Contract from America, but you get the point.

Everything's coming to a point with conservative anger, and now they're galvanizing and mobilizing for the election.