Friday, December 24, 2010

Krauthammer's Wrong This Time

I love Charles Krauthammer -- he is brilliantly analytic and his wit is, as we say, mordant. But he is ignorant on matters economic.

Riding the lamest of ducks, President Obama just won the Triple Crown. He fulfilled (1) his most important economic priority, passage of Stimulus II, a.k.a. the tax cut deal (the perfect pre-re-election fiscal sugar high

The now-famous tax-cut compromise is not an economic "sugar high". It merely maintains the current economic conditions minus a few billion in lost capital because of the return of the inheritance tax. This isn't to say it's bad -- leaving most tax rates the same is far better than raising them.

But to portray it as some sort of stimulus, as Krauthammer's been doing for the past couple weeks, is false. If Americans weren't inclined to invest in growth this year, there's nothing in Obama's great compromise to change their minds in 2011.

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