Sadly, the majority in Congress seems to think that tough economic times is a great opportunity to go on a spending spree of every pork program they ever wanted and lots of welfare payments (Obama calls them tax cuts) to people who don't pay taxes. In the stimulus bill are items such as: Birth Control Programs, New Cars for Government Employees, Dog Parks, etc.
850 Billion is such a large amount that it is difficult to put into context. This example might help. For each American Family it amounts to around 17K. Let me ask this: Which do you think the American People could use more: The Money? Or a place to walk you dog during the week from the homeless shelter since you don't have a job and you didn't have money to pay your mortgage or rent?
The government spending cannot replace the economic effect of consumer spending anyways. The reasons should be obvious. The government is not going to spend the money on the same things I would. They spend money on things like Auto Leases for the government workers. I need the money to spend on Baby Strollers. Those two items are sort of different. My family gets zero benefit from a government employee's free auto lease. My family gets a lot of benefit from having baby equipment for our children. The money I earned is of far far greater benefit to me when I spend it vs. having it appropriated from my paycheck via taxes and spent on something unrelated. This is also called "Transfer of Wealth" or "Class Warfare." This approach is fully supported by the current ruling political class in America today.
If they really cared about the people they would see that the people need as much of their hard earned dollars a lot more than we need the government to wastefully spend the money on things we don't need or wouldn't buy/build ourselves. Sadly, this is not the case.
I might have a little more support for the spending stimulus idea if we didn't have 100 years of economic history that proves it has never ever worked. Not during The Depression. Not during the 70
s. Not now. What do they call doing the same thing over and over again and expecting different results again? Oh yes. That is the formal definition of insanity.
This is what needs to happen. Start over. Put together a bill that involves growth related tax cuts and appropriate spending investments in businesses that can promote private sector growth. Do not include any items that are merely on "wish lists" of state & local governments. Only growth related spending should be included. If there isn't enough spending opportunities that truely fall into that categories implement tax cuts on capital and corporate profits to allow growth of those industries with an incentive to create new jobs. Cut the crap pork spending. Promote economic growth. Simple.













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