{"id":32084,"date":"2012-11-28T12:00:12","date_gmt":"2012-11-28T18:00:12","guid":{"rendered":"http:\/\/www.shotinthedark.info\/wp\/?p=32084"},"modified":"2012-11-30T16:18:29","modified_gmt":"2012-11-30T22:18:29","slug":"chanting-points-memo-chickens-do-not-equal-causation","status":"publish","type":"post","link":"http:\/\/www.shotinthedark.info\/wp\/?p=32084","title":{"rendered":"Chanting Points Memo: Chickens Do Not Equal Causation"},"content":{"rendered":"

Dave Mindeman at mnpAct (?) illustrates why trying to discuss economics with Democrats is such a deeply, abidingly frustrating diversion<\/a>:<\/p>\n

\"\"<\/p>\n

The business community worked hard to get Republicans elected during the last election…Now they say they are nervous about DFL Legislative control.<\/p><\/blockquote>\n

This is, bear in mind, the same DFL administration that, the week President Obama told America’s entrepreneurs “you didn’t build that”, repeated exactly the same message to a major privately-owned Minnesota corporation.<\/p>\n

If they’re nervous, it’s for a reason.<\/p>\n

As usual, business get it wrong when it comes to which Party is best for business. And, frankly, most of the perception problem stems from the fact that business always does better when government policies are promoted which favor their clientele and customers…not themselves.<\/p><\/blockquote>\n

That’s an interesting claim. \u00a0Let’s watch Mindeman elaborate on it before we pull the rug out.<\/p>\n

Republicans and business generally collaborate on the superficial. They want property tax breaks….they want to limit taxes on the wealthy….they want tax incentives. All of that can free up cash and maybe increase the bottom line to a temporary extent….but they are not really pro-growth policies.<\/p><\/blockquote>\n

Well, yes and no, and irrelevant. \u00a0Republicans and business also favor paring back excessive regulation, and reforming taxes\u00a0in the long term<\/em>\u00a0so that they don’t\u00a0structurally\u00a0<\/em>hinder growth. Mindeman didn’t mention that – but to be fair, no Democrat ever does.<\/p>\n

The dynamics of the economic engine are heavily fueled by demand. Business can create demand to some degree but unless their is a thriving middle class that has the means to purchase the goods produced, the economy goes nowhere.<\/p><\/blockquote>\n

Which leads us to a chicken-egg question; what creates a healthy and prosperous middle class? \u00a0Especially given that so many of us in the middle class work for, well, businesses?<\/p>\n

MIndeman, being a Twin Cities liberal – where a sclerotically-disproportionate share of the “middle class” is employed by government, has an answer; we’ll come back to that.<\/p>\n

First, we have a chanting point to dispense with:<\/p>\n

When Democrats are in power, business may not get the preferential treatment they are used to by the GOP, but the broader economy usually does better.<\/p><\/blockquote>\n

Ah, well, then. \u00a0That settles it.<\/p>\n

Well, no. \u00a0It doesn’t. \u00a0This is a chanting point that’s been popping up on the left a lot lately. \u00a0The left’s been circulating a graph that shows the economy grew faster under Democrat presidents than Republicans. \u00a0It tries to link a correlation – numbers on a time-line – to the President at the time.<\/p>\n

Of course, it’s intensely misleading<\/a>:<\/p>\n