Monday, February 18, 2008

How?

No, this isn't a Native American greeting. It's a response to Dem hopeful Hillary Clinton's new economic plan.

Hillary introduced her "Economic Blueprint" this weekend. Only it's not a blueprint. See, I've had a house built. I've seen the blueprint. And it showed not only what the house would look like, but how it would be built. And that's what's missing from Hillary's plan. The how.

For example, she says she'll create "good jobs" here in the US. Okay - how? She doesn't say. She says she'll stop companies from "exporting jobs overseas like they were some commodity" (which they are). Great - how? Okay, in this case she actually does give us one idea: eliminate tax breaks for those companies that do export jobs. Which begs the question - you guessed it - how?

What tax breaks? Is there a specific break for exporting jobs now? No? Well then, what would she do? If a company has employees overseas, does she just eliminate all tax breaks that company gets? Wait a minute, some of those breaks are legit. So do we penalize companies that do things we want to provide an incentive for them to do by taking away the legitimate tax breaks we've used to provide those incentives, because they're also doing something we don't want them to do? Gee, then won't they just stop doing ALL the things we want them to do, since the incentives are gone?

And how do we differentiate between a company that has employees overseas because they have operations there, and those who shift call centers and the like to other countries? I mean, is McDonald's supposed to cook all their burgers over here and then ship them to China for consumption? Is GM supposed to build its cars for the French market in the US, instead of in France, where it's more cost-effective for them to build them due to shipping, materials and related costs, rather than labor costs?

Hillary also wants to freeze mortgage rates for five years on subprime ARMs, a monumentally stupid and criminally unfair idea. Again, how? Hank Paulson tried to get it done voluntarily, and we've already given up hope on Project Hope. What's Hillary going to do, make it mandatory? That'll make the bondholders' lawyers very happy. (Given how tight Hillary is with trial lawyers, maybe that's her motive.) Besides, by the time she's sworn in, the bulk of the impact of the subprime/option ARM imbroglio will have already wreaked its havoc on the economies of the world.

She has promised to impose a windfall tax on the profits of oil companies. Guess who else is planning to do that? Venezuelan dictator Hugo Chavez. Now there's a similarity that should send chills up our collective spine.

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