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Greece Comes to Washington, Again

One day Team Obama announces a plan for enhanced rescission authority to impound wasteful spending.

The next day the House surfaces a $200 billion “stimulus” plan to spend on transfer payments for welfare, even more unemployment compensation, still more Medicaid, and a bunch of special-interest subsidies.

So are we to believe that Obama will rescind the excess appropriations?

Hardly. And since pay-go is dead, most of the new spending is not offset. It will add to deficits and debt.

The Greek disease.

The welfare state run amok.

The European Debt Crisis - See Complete Coverage
The European Debt Crisis - See Complete Coverage

Right here at home.

And in true class-warfare style, a small portion of the $200 billion is supposed to be offset by jacking up capital-gains taxes for investment partnerships. If passed, this would reduce investment, jobs, and economic growth, and enlarge the deficit.

Higher spending and investment taxing is a true austerity trap.

Then we read in USA Today that private-sector personal incomes are at an all-time low, while government benefits as a share of income stand at an all-time high. I believe this is called redistribution.

And then comes a study from the Harvard Business School that states: “Stimulus Surprise: Companies Retrench When Government Spends.” What a shocker. (Hat tip to Don Luskin.)

House Democrats apparently don’t read newspapers from Greece or the United States. And they sure don’t read Harvard B-School studies.

Questions? Comments, send your emails to: lkudlow@kudlow.com

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