Sunday, September 12, 2010

Do the Democrats want to lose power ? More importantly does Fred Hiatt want to lose power ?

I have been wondering why Democrats aren't stimulating the economy and buying votes by mailing out checks. A not so bad policy would be to send $500 to every family in the USA right now. It would certainly be better policy than temporarily extending Bush tax cuts on income over $250,000. Also it would be much more popular. So why not ?

I think the Democrats are afraid of being denounced as populist class warrior demoagogues out to buy votes. This fear makes no sense. Such denunciations are exactly what they need to survive the next election. As everyone who actually looks at polls knows, there is a solid majority in favor of a more progressive tax code or, in other words, populist class war and soaking the rich. Somehow almost all pundits either make claims contradicted by the polls or are shocked and surprised by the latest poll which shows what polls always show.

My guess is that Democrats really care what the Washington Post editorial board writes about them. They are not willing to be called demagogues.

My new thought is that the pundits are not rationally seeking power. If I am right, they have great power now, because Democrats are in power and obey their will. Republicans ignore them completely (how many divisions does Fred Hiatt have ?). So if the pundits want to keep power, they have to help the Democrats win. They won't do this by endorsing Democrats a week before the election (Fred Hiatt has no divisions). They can do this by recommending increased tax progressivity.

Unfortunately, they are not evil people who seek power. The pundits are sincere, albeit blinded by class interest. But if they, or Democrats in power were in the grip of blind ambition, the unemployment rate would be lower next year and the national debt would be lower indefinitely.

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