Republicans Just Don't Understand Economics, Do They?

Ok, here it is – the Republican Senate is passing a fat ass tax cut to the rich again. (Story: here, courtesy of the Washington Post.)

Poor-to-Middle class Americans will see about $20 (think: 0.1 % over their annual income), whereas the millionaires will get about $42,000 (think: 4.2 %) of their tax dollars back. They argue this up as being good for the economy, trickle down and all that nonsense. The argument here is that more money in the hands of Americans means a stimulus to the American economy.

To the Fed Chairman, Ben Bernanke, more money in the hands of Americans doesn’t mean a stimulus to the American economy, it means inflation. The Fed just raised the interest rate the other day to attempt to curtail inflation. (Thank you, CNN).

That somewhat dampens the economic stimulus argument, doesn’t it? But no matter, the Republicans don’t need an understanding of economics – they have ideology, after all.