Tuesday, January 27, 2009

 

How Not to Stop the Economic Crisis

Pass Obama's pork filled "stimulus" bill. Even to an economic neophyte like myself, the folly of Obama's bill is obvious.

Spending money we don't have won't help the problem created by spending money we didn't have. Obama and his hacks keep screaming that the public expects us to take action now, to do something now. This is crap to fill the heads of the vacuous talking heads I've listened to all day on cable news. I haven't hear anyone saying that but politicians eager to send money towards their friends and campaign contributors. I have heard people saying government needs to quit throwing money around like drunken cowboys in a brothel.

Obama's plan will fail because it's a continuation of the behavior that created the problem. It will create a national debt that will take generations to pay off. More reasons Obama's plan is wrong.
it sure seems like an economic recovery package that's heavy on government spending and light on tax cuts is just the opposite of what we should be doing right now.


An economist in Tennessee says:
To sum up, there are two basic kinds of objections: theoretical (even if we implement the best possible stimulus package, it won't do much) and practical (we are not likely to get anything close to the best possible stimulus package). For these reasons I think it might be best to simply avoid repeating the mistakes that caused the Great Depression to be more than just an ordinary recession (and I think we've already accomplished that), and let the macroeconomy do the rest.
But I really don't need to read economists analysis to know this "stimulus" package is all wrong. Just as I used to ask, "How can so many people afford these expensive houses?" and "How can so many people afford these fancy cars?" And so on. They couldn't. The banks couldn't afford to keep making bad loans. The auto manufacturers couldn't afford to keep making mediocre cars and over-paying workers.

Everybody was looking for short term gains and hoping some magical event(s) would occur that would make it all OK in the future. It didn't and it won't. Obama has quickly chosen a path of failure. The eager politicians and business people have jumped on board to get as large a share of the pie as possible. We'll be paying for this greed the rest of our lives, as will our our children and grandchildren.

HT: Instapundit and AC Kleinheider.

Added thought: I wonder if 2 years or 4 years down the road we'll be hearing Republicans who voted for this spread the greed "stimulus" package proclaiming, "I was for the stimulus package before I was against it."

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