Their Senate leadership:
That Democrats now demand yet another stimulus program, plus tax increases, is a Hail-Mary reprise of a failed policy. All they can think of is more spending, more tax increases, more federal bureaucracy. Senate Finance Committee Chairman Max Baucus, D-Mont., was at least up front about it: "I think revenue is needed for a whole host of reasons, and more importantly, I think, leadership is needed -- leadership is needed on both sides of the aisle, and on both ends of Pennsylvania Avenue." Does anybody now doubt that when Democrats talk about "leadership," what they really mean is more spending and tax increases?Their lack of leadership.
An incredulous Senate Minority Leader Mitch McConnell put it well when he said, "This isn't just mystifying, it's farcical. I mean, most Americans had to wonder if they were dreaming this morning when they saw this headline: 'Democrats call for new spending in U.S. debt deal' More spending? As a solution to a debt crisis? What planet are they on?"
One big difference is who feels these effects. The wealth effects have helped everyone but especially the affluent. The income effects have been felt most acutely by the poor and middle classes for whom food and energy are a much higher proportion of income. QE2 and near-zero interest rates have been a boon for bankers and hedge funds. They haven't been so great for suburban families who commute to work and haul their kids to football and music practice. The monetary policy so favored by liberal economists and the White House has actively favored the wealthy over the middle class.Maybe he just wants those campaign donations.
If you're a small business on Main St. you're considered rich by this president, a double whammy when the Dems want to tax the job creators even as they're paying more for what comes in the door.
"Food prices are transitory only if you have weather that is transitory, if you don't have natural disaster problems," says Peter Cardillo, chief economist at Avalon Partners in New York. "It appears the past several years that things have gotten worse in terms of natural disasters. How many tornadoes have we had? All you need is something like that to happen during growing season in Idaho or Nebraska and that's the end of you."Tornadoes and floods of biblical proportion.
Cartoon by Michael Ramirez, IBD How bout those gas prices. A stuck on stupid no energy policy. And Obama job disapproval back up to 50% per Gallup. RCP.
More: Democrats Refuse to Compromise, Demand Tax Increase Robert Stacy McCain
Related: Yesterday on Video: Paul Ryan: The whole idea of the Republican budget is to reform the welfare state, help people get on their feet, and promote entrepreneurship