Offending Puritans Hurts Marketability
Rodger Jones, in The Dallas Morning News Opinion blog, just can't let go of the 'Michael Phelps uses marijuana' story. Jones couldn't win the argument that the private, occasional use of recreational drugs is a moral failing of the first magnitude meriting demonization. So, today he tries the business angle, telling readers that Kelloggs won't renew its sponsorship deal with Phelps because of the controversy. If enough puritans kick up a big enough stink, sponsors will drop Michael Phelps. That proves ... what? That puritans can influence marketers? Fair enough. Michael Phelps was foolish for not knowing that if you want to market yourself to puritans, you can't offend them, no matter how unreasonable their opinions about recreational drug use might be. Lesson reinforced, Rodger Jones.
What Spending is Good for the Economy?
Sharon Grigsby, in The Dallas Morning News Opinion blog, asks a very good question: What type of stimulus plan spending will create jobs? We already know the Republican Party answer: tax cuts. The GOP is criticizing the plan now before Congress for not being a stimulus bill but a spending bill. President Obama gave them a primer in economics by answering, "What do you think a stimulus is? That's the whole point."
The GOP may not have the answer, but the Democratic bill is not necessarily perfect. Again, President Obama cuts to the chase: "The bill that's emerged from Congress is not perfect, but a bill is absolutely necessary."
So, what is the answer to Sharon Grigsby's question? All spending is not created equal. If Congress is going to shape and work this bill and then tweak it some more before it finally makes it to a vote, it might as well improve the bill in the process. The Congressional Budget Office (CBO) provides our final lesson for the day. According to the CBO,
"The negative effect of [increased debt] crowding out [private investment] could be offset somewhat by a positive long-term effect on the economy of some provisions - such as funding for infrastructure spending, education programs, and investment incentives, which might increase economic output in the long run."So, there you have it. Beef up spending on infrastructure, education, and investment incentives and you get the best of both worlds: short-term stimulus and increased economic output in the long run.
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