- The (BS) Temporary Payroll Tax Cut

I'll tell you a secret. It's a secret that all the Democrat hacks like Austan Goolsbee know. A temporary payroll tax cut does not create an incentive for growth. Have a look at what many consider to be Milton Freidman's best work, the Permanent Income Hypothesis.

To summarize, what this says is that people change their behavior based on their long term cost expectations, and 'temporary' changes to the tax code will not act as incentives for growth. I doubt that even someone as willfully blind as Krugman would challenge this. But pols (who don't know their... hats... from a hole in the ground) don't tell you that, and neither do their economic apologists.

The temporary payroll tax cut would be a waste of time. It will hurt the federal budget more than it helps us. It's the leftists answer to 'actually' solving real problems. They want to be seen as doing something, but they need to keep their 'looter' base happy. So they mix up the horse manure in with the chocolate ice cream and hope it's just as tasty.

It never works - and they know it.