Borrow-and-spend Republicanism

The House has passed a $550 billion tax cut. The attempt to remove all taxation from corporate dividends failed, however, as even a few Republicans couldn’t see why people like Bill Gates needed to be given their millions of dollars a year in dividends tax free during a recession.


As you may have heard, there has been a modest rise of a few percent in consumer spending so far this year, leading to hopes that consumer spending will get the US out of recession. As you may not have heard so loudly, the US trade deficit leapt up 15% in January, said to be fueled mostly by the fact that consumer spending is mostly on foreign goods.