Tentative Stimulus Deal Confirms Krugman's Law
As I noted earlier, the Senate has apparently reached a $780 billion compromise stimulus package after supposed moderates amputated over $100 billion in funding for health care, education and other vital initiatives.
While many of my liberal allies disagree with my assessment that President Obama got rolled by bringing a knife to a gun fight with Congressional Republicans, it's hard to disagree with New York Times columnist Paul Krugman's January 5th prediction of what would come to pass. Call it Krugman's Law:
"Look, Republicans are not going to come on board. Make 40% of the package tax cuts, they'll demand 100%. Then they'll start the thing about how you can't cut taxes on people who don't pay taxes (with only income taxes counting, of course) and demand that the plan focus on the affluent. Then they'll demand cuts in corporate taxes. And Mitch McConnell is already saying that state and local governments should get loans, not aid - which would undermine that part of the plan, too."
And as I've previously suggested, there is also Krugman's Corollary. Fearful of a Democratic majority for years to come, Republicans are afraid not that Barack Obama's economic recovery package will fail, but that it might succeed. Or as Krugman himself put it on January 26th:
"Conservatives really, really don't want to see a second New Deal, and they certainly don't want to see government activism vindicated. So they are reaching for any stick they can find with which to beat proposals for increased government spending."