Hard to believe that a Democratic administration is proposing only support for business and none for consumption.
While it might be an election ploy the fact that it’s been a pattern all along just adds more weight to the notion that this administration is a tool of big business as it works to keep unemployment high and domestic consumption down along the lines of the classic gold standard export model of growth. This notion is further supported by the official goal of doubling exports, and Bernanke stated before Congress a couple of years ago that he prefers exports to domestic consumption (not that anything he does actually matters for that purpose).
News Alert from The Wall Street Journal
President Barack Obama, in one of his most dramatic gestures to business, will propose that companies be allowed to write off 100% of their new investment in plant and equipment through 2011, a plan that White House economists say would cut business taxes by nearly $200 billion over two years.
The proposal, to be laid out Wednesday in a speech in Cleveland, tops a raft of announcements, from a proposed expansion of the research and experimentation tax credit to $50 billion in additional spending on roads, railways and runways.