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Paul Krugman notwithstanding, Americans believe it is always better to cut taxes than increase government spending.

Paul Krugman, last year’s winner of the Nobel Prize for economics and a regular columnist for the New York Times, recently wrote that you should “write off anyone who asserts that it’s always better to cut taxes than to increase government spending because taxpayers, not bureaucrats, are the best judges of how to spend their money.”

If you follow that advice, you’ll be writing off a majority of Americans. The latest Rasmussen Reports national telephone survey found that 53% say that it’s always better to cut taxes. Only 24% share Krugman’s views.

Republicans overwhelmingly say it’s always better to cut taxes, and so do 50% of those not affiliated with either major party. Twenty-three percent (23%) of unaffiliateds take the opposite view and agree with Krugman.

Democrats are evenly divided—38% say tax cuts are always better while 34% disagree.

Krugman is a little more in sync with public opinion when he asserts: “public spending rather than tax cuts should be the core of any stimulus plan.”

The poll finds:

• 34 % Agree
• 34 % Disagree
• 32% Not Sure

Then, there is another Krugman opinion: “it’s clear that when it comes to economic stimulus, public spending provides much more bang for the buck than tax cuts.”

• 31 % Agree
• 42 % Disagree

On all of the questions surveyed above, American voters under 30 are more likely to agree with Paul Krugman.

There certainly appears to be a disconnect between American voters and the Far Left ELITIST Krugman. Is it because American voters are not academics and live in the real world? 

Or do they simply have experience on how government spending can be wasteful and tax increases oppressive?

Take your pick…….

HR 3997 was not passed.

The House on Monday defeated a $700 billion emergency rescue for the nation’s financial system, ignoring urgent warnings from President Bush and congressional leaders of both parties that the economy could nosedive into recession without it.

Stocks plummeted on Wall Street even before the 228-205 vote to reject the bill was announced on the House floor.

Bush and a host of leading congressional figures had implored the lawmakers to pass the legislation despite howls of protest from their constituents back home. Despite pressure from supporters, not enough members were willing to take the political risk just five weeks before an election.

The fact is the American voters did not support this unprecedented government intervention and do not believe President Bush or Congressional leaders.

Now, both Barack Obama and John McCain should get their asses back to Washington and work with their respective parties to craft an acceptable compromise solution. Or, get the hell out of the way and let the free market correct the largess of the housing bubble.

Update:

The roll call vote is here.

Flap’s Congressman, Elton Gallegly voted NO.

This is why the President was addressing the nation tonight and why Congressional leaders, plus the Presidential candidates are meeting tomorrow at the White House.

The fight over the Bush administration’s plans for a $700bn financial rescue package unnerved markets and spilled over into the US presidential race on Wednesday as John McCain, the Republican nominee, said he would put his campaign on hold until a deal was reached.

Amid uncertainty about the plan’s prospects, US money market funds controlling thousands of billions of dollars in assets led a stampede to safety, buying short-term government debt, selling commercial paper and withdrawing funds from the interbank market. As a result, the rates that banks charge each other soared, while yields on Treasury bills plunged.

As officials struggled to address the mounting political objections, Ben Bernanke, Federal Reserve chairman, told Congress turmoil in the markets could lead to greater economic pain. Peter Orszag, head of the Congressional Budget Office, warned lawmakers of possible “chaos” if Congress did nothing. “You would have a financial market meltdown that would cause very severe dislocations  . . . maybe on the magnitude of the Great Depression.”

Back to the drawing board tomorrow but they better work quick and through the weekend if need be. If the credit markets seize up then the layoffs start on Monday afternoon.