Conservative Economics: Let’s Make Sense!

Sean Paul Kelly of The Agonist found this video clip from August 2006. As Sean Paul says, I don’t know anything about Peter Schiff, but he was right, and econoclown Arthur Laffer is, um, not. The word “fool” doesn’t even come close.

BTW, I understand Laffer has come out against any sort of stimulus package, but I can’t find a direct link to anything he’s written since last fall. Maybe he’s not well; he’s too big a fool to actually shut up.

Dennis Waldman, aka Kagro X, at Congress Matters has a look back at what Republicans said about Bill Clinton’s economic policies in 1993. Give it a look; it’s a hoot.

Republicans: Let’s make sense!

Let’s Make Sense!

“Let’s Make Sense!” is the name of a game I’ve just invented. I’m still working on the rules, but the basic idea is to sniff out bits of public discourse that don’t make sense. By this I don’t mean bits I disagree with, or even bits that are not factual (although there are plenty of those, and they are not ruled out). I mean things that are just plain disconnected from standard human cognitive processes.

Tim F. at Balloon Juice found a great example. There’s a provision in the stimulus bill that would cap the pay of financial institution executives.

The provision, inserted by Senate Democrats over the objections of the Obama administration, is aimed at companies that have received financial bailout funds. It would prohibit cash bonuses and almost all other incentive compensation for the five most senior officers and the 20 highest-paid executives at large companies that receive money under the Treasury’s Troubled Asset Relief Program, or TARP.

That makes sense, yes? But here’s an objection coming from an adviser to President Obama:

“These rules will not work,” James F. Reda, an independent compensation consultant, said on Friday. “Any smart executive will (a) pay back TARP money ASAP or (b) get another job.”

As Tim F. says, what’s not to like about either (a) or (b)? If the institution can survive without TARP money, then let it do so. Taxpayers don’t need to be propping up companies that don’t need propping up. On the other hand, if the company is sliding into bankruptcy, why is it such an all-fired tragedy if the CEO quits?

Mr. Reda: Let’s make sense! And Obama Administration, let’s make even more sense and stop listening to Mr. Reda.