The global economy doggedly refuses to re-start. Employment is flat, demand is flat, prices are flat, housing sales are flat, growth is nearly flat.
Stagflation and inflation, the old fears, have given way to the flatline economy. Sometimes flatlined patients can be revived. Clear! But what should the therapy be?
Republicans are responding to the flatline economy by demanding what they are programmed to demand — tax cuts for the upper class. Democrats are responding to it by demanding what they are programmed to demand — more government spending.
Both approaches have already been tried, and both don’t work. Only a gridlocked partisan political system would keep demanding more nostrums.
Federal income taxes were cut significantly in 2001 and again in 2003. The recession of 2008 began under a regime of tax cuts. The tax cuts probably did not cause the recession, but they obviously did not stop it either. Federal taxes were cut again in 2010, this time both income and payroll taxes were reduced. No response from the flatline economy.