Category Archives: conservatives and liberals

The Tea Party protestors really mean whiskey, not tea

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Evidently the four-word slogan “No Taxation Without Representation” is too complicated to fit on some people’s bumper stickers.  They have chopped off the last two words.  They don’t want taxation period.

The “Tea Partiers” revere the Constitution. But some might lack the knowledge of early American history that they claim.  In honor of George Washington’s birthday, February 22, I would like to recall a bit of that history.

The Boston Tea Party is not in fact the most appropriate historical precedent for the grass roots protests that have received so much attention over the last year.  The famous slogan motivating the patriots in Boston Harbor in 1773 was “No Taxation Without Representation.”  But democratic representation was achieved with the American Revolution. The Whisky Rebellion of 1794 is a much closer parallel for today’s protestors.   Or the earlier Shays’ Rebellion of 1787, the episode of anarchy to which many Americans reacted by seeking a federal constitution.    The pitchfork-carriers in these rebellions were protesting against taxation with representation.   They did not want to pay the taxes necessary to fund the government services they enjoyed — which at that time meant servicing the debt from the Revolutionary War. (Sound familiar?)  President George Washington, not the rebels, was defending the Constitution against its first severe test, when he personally put down the Whiskey Rebellion with force.    read more

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The Pot Again Calls the Kettle Red: Republicans, Democrats, the Fed and QE2

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     Some conservatives are attacking current U.S. monetary policy as being too expansionary, as likely to lead to excessive inflation and debauchment of the currency.   The Weekly Standard is promoting a letter to Fed Chairman Ben Bernanke that urges a reversal of its policy of QE2, its new round of monetary easing. The letter is signed by a list of conservatives, most of whom are well-known Republican economists, some associated with political candidates.  Apparently the driving force is David Malpass, who was an official in the Reagan Treasury, and he is taking out newspaper ads later this week.  This follows similar attacks on the Fed by politicians Sarah Palin, Mike Pence, and Paul Ryan.  read more

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The US & Europe Could Look South to Re-learn Countercyclical Fiscal Policy

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During much of the last decade, U.S. fiscal policy has been procyclical, that is, destabilizing.   We wasted the opportunity of the 2003-07 expansion by running large budget deficits.   As a result, in 2010, Washington now feels constrained by inherited debts to withdraw fiscal stimulus at a time when unemployment is still high.   Fiscal policy in the UK and other European countries has been even more destabilizing over the last decade.  Governments decide to expand when the economy is strong and then contract when it is weak, thereby exacerbating the business cycle.     read more

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