September 14, 2005

Jack Welch: Katrina's cost to the government not a problem

Jack Welch, GE's retired CEO who was known as "the king of shareholder value," was a guest of CNBC's "Squawk Box" this morning.

When asked about the damage the high cost of Katrina could do to the federal budget, Welch sanguinely predicted that the $200 billion, going into rebuilding projects and jobs, will flow through the economy, providing a stimulative effect, "just as the tax breaks did."

Wow. The heads of the military-industrial complex and their Republican subsidiary get it: federal spending. And it ain't such a bad thing -- not when it's flooded through the proper channels.

These are the "investor class" folks who mailed $300 checks with one hand while pouring unconscionable tax breaks on the filthy rich with the other. Middle class workers are now picking up the tab: over $1700 in additional state and local taxes and fees each year and a federal deficit spinning from a tropical depression into a full-flown hurricane.

Only ideology and blind greed (excuse the redundancy) keep those in the cradle of power from seeing that $200 billion spent on the country's infrastructure before a catastrophe like Katrina would have provided as much economic stimulation as it will after it's too late to help those who died and suffered because of government inaction, incompetence and willful ignorance.


Anonymous said...

Interesting that a strong right winger would sanguinely opine that the classic modus operandi of liberals with regards to government fiscal policy is just fine - as long as a Republican is the one who does it....

- oddjob

aikane said...


Not only that, I got the distinct impression that "king" Welch was angling for a job, or at least was part of discussions with the Repub elite on how best to spend the windfall.

Katrina may play right into their hands: by throwing billions at Iraq and now Katrina, they squeeze the life out of social programs while reaping huge profits for the "investor class."