Tuesday, March 22, 2011

The Return of the Yellow Peril

Citizens Against Government Waste has released a slick ad that imagines a future where China dominates the west, particularly the United States. (Video below.) The cause? Government spending and debt. It has a Chinese professor speaking to students in Mandarin. He's talking about the fall of the United States due to government spending. On the wall of the lecture hall is a picture of Mao. Get it? Not only has the United States lost but the Communists have won.

Okay, I've got a wee problem with the ad. It's racist. Yes, that's correct. Note this ad is designed to inflame the angry white right wingers out there. Yes, I know it strives for realism by using the Chinese language but by not using English it's designed to emphasize the foreign feel. And having an image of Mao who is not relevant in China anymore, is bringing back Red baiting.

But more importantly the ad is wrong. Look, I hate government spending too. That's money out of the individual's pocket. But CAGW doesn't understand how the economy works. In 2008, we were on the brink of the Great Depression, part 2. Propping up banks that President George W. Bush did, saved the country. If the banks failed they would not be able to loan money to business. Businesses would fail. Great Depression, part 2.

What about stimulus spending? Again CAGW gets it wrong. President Obama also helped save the country. Let me explain this in simple terms so conservative right wingers can understand. Let's say you go to your favorite bar on Wednesday night. The bar employs two bartenders. And let's say because of the economy you stop going on Wednesday night. Let's say a bunch of customers stop going. The bar lays off the second bartender. He now has less money to spend and therefore spends less. Say bartender forgoes going to his favorite bar. That bar lays off one of their bartenders. And so the cycle goes. Businesses start to fail because consumers are not spending. Great Depression, part 2.

The only entity large enough to encourage private spending is the United States government. If consumers and businesses stop spending the government is the only entity that can step in. You want proof? Let's look at the Great Depression. What got us out of it? World War II. And what did the government do? By spending money on arms and building up the war machine, that put more money in the hands of people. They intern spent it. World War II was the greatest government spending program in the history of the United States. And it got us out of the Depression. So it's caveman thought to say that stimulus spending is evil.

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