Tuesday, April 28, 2009

Disproving the "Going Gault" conspiracy theory: Exhibit A: Its proponents

I'm starting to wonder if Bizzyblog should be declared mental incompetent for his own protection. He's still clinging to his newest conservative conspiracy theory as to why the economy tanked: people started last summer "going Gault" (think rich people on strike) in order to avoid Obama's crushing three percent increase on the top marginal income tax rate (you know, returning them to the pre-Bush/Clinton levels in which nobody "went Gault" when instituted.)

I could not possibly detail the exact number of ways this is completely asinine. But here's some of the top ones:
1) An "alternative theory" as to why federal revenue collections dropped starting in last summer could have more to do with a global economic recession than an unorganized, uncoordinated plan to protest a three percent increase on the top marginal tax rate... especially when the control of Congress and the White House was far from certain. In fact, anyone who reads Bizzy's posting at the time would see that his rants then was that the Democrats and the media were falsely representing the state of the national economy and they'd be revealed as frauds when the fourth quarter showed 4% GDP growth (it instead showed -6% shrinkage... and yet, Bizzy still maintains there has been no recession at the time.)
2) The only ancedotal evidence cited by its supporters have people pledging that this year they will cut back on their business because they don't conceptually understand marginal tax rates. This pledge by people to go Gault in the coming future would seem to be strong evidence AGAINST a theory that people have been going Gault since June 2008.
3) The offshore drilling ban. This is the entire crux of Bizzyblog's "going Gault" theory:
Starting in June and all the way through to Election Day, Nancy Pelosi, Barack Obama, and Harry Reid repeatedly told the country that they were ready, willing, and would soon be able to starve the country of the conventional sources of energy it needs to keep its economic engines running, regardless of the consequences, bowing before what may be the greatest hoax in human history.

Never mind that Obama favors coal energy and the development of clean coal technologies. Never mind that the very "cap and trade" proposal Obama was supporting was also part of the McCain/Palin platform.

Beyond that, the only energy issue that meets this description is the federal offshore drilling ban... which was lifted under a Democratic Congress in September, a month BEFORE the stock market crashed. A ban which had existed for decades and went unquestioned during the prior six years of Republican rule in the White House and Congress. How lifting the offshore drilling ban equates to "starving the country" of conventional sources of energy which explains the following collapse of the capital markets is beyond even insane human comprehension.

4) Conflating typical recessionary actions with political motives. Here Bizzy couldn't be more transparent as he confuses the reader to ascribe political motives ("going Gault") with rational economic actions in an economy where GDP is shrinking 6% (at the same time Bizzy thought it was growing 4%), credit markets are frozen, capital is vanishing in the stock market, etc.:
"As a result, they took steps that businesspeople, entrepreneurs and investors ordinarily take when a serious recession takes hold — not hiring, not expanding, letting people go and not replacing them, making worn-out equipment last longer instead of buying new, and others — before the serious recession took hold."

These things all took place in the fourth quarter.... at the beginning of the recession. (Tomorrow, it is expected the First Quarter GDP will be announced, expectations are that it will show a negative 4-5%. Expectations are that the second quarter of 2009 will show another 2% loss in GDP before the economy begins to grow again.) The economy didn't shrink because Obama said the economy was bad. It's the opposite: Obama said the economy was shrinking because the economy was shrinking.

Again, this, and the global size of the economic crisis, suggests that the slowdown in the economy has more to do with macroeconomic trends than a bunch of rich folks protesting having to pay higher taxes. The fact that Bizzy is compelled to conflate the two so obviously reveal what a fraud the "going Gault" theory really is.

5) Dumb people don't stay rich. The top wealth producers in the economy clearly lost more wealth in the stock market crash beginning in October than any tax proposal by the Obama Administration. If the rich stopped hiring, producing, and investing to protest a three percent increase on the top marginal rate, then this was the most foolish waste of money in the history of economics. It's like detonating dynamite in your house to kill a fly.

6) Do as I say, not as I do. Almost not the the strongest evidence of what utter nonsense th "Gault theory" of the 2008-2009 recession, it certain is the most amusing. If, as Bizzyblog opines, the Tea Party protests earlier this month were about the collective Gaults of the nation expressingly their anger. Then where was Ohio's leading advocate that all things economic are Gault?:

"It is my pleasure on this Tea Party Day (which I will regretfully have to miss because of personal and business commitments) to introduce a new and hopefully fairly frequent poster here."

In other words, "While y'all go Gault, I'm going to work." How very un-Gault-like. Tell me, what are the titles of the books Ann Coulter and Michelle Malkin won't be publishing this year because they're "going Gault?" (One reason why I totally support both of them if they decide to actually practice what they preach.)

After spending months claiming that there was no recession, Bizzyblog cannot fathom the idea that he was just simply wrong on the economy and wrong for attacking Obama for truthfully talking about the bad economic conditions. Nope, in his fevered partisan mind, the only conclusion is that the Trilateral Commission or some other shadowy, power conservative group wrecked the economy to get Obama elected President and make things so bad that Americans were willing to permit an extensive federal involvement in the means of production in our national economy in order to protest a tax increase at the top marginal rate (returning it to its levels permitted, without a Gault-like strike, in the 1990s), thus making Obama's prior comments on the economy a self-fulfilling prophecy. Yeah, that's far more plausible than Bizzyblog doesn't know what he's talking about!

1 comment:

Eric said...

wondrous. stupendous. glorious in it's thoroughness.