Going into debt to stimulate the economy is like taking Viagra to prevent pregnancy. (Yes, that analogy is original, copyright by me.)
There are several problems with the stimulus that Obama has put into place. First, it’s retarded to think that you can spend your way out of debt. I think that goes without saying. The federal government can get away with it for a while, but eventually inflation becomes unavoidable.
Another problem is that the government is a hopelessly moronic bureaucracy, fully incapable of doing anything efficiently. Obama is trying to have the feds oversee how every dollar is spent (for transparency or some such noble idea).
If you accept the premise that you CAN spend your way out of debt, then you should give money to people who can actually get the funds spent in a reasonable amount of time. The economist in the article suggests mayors… most cities have public works projects they want to do but can’t afford. That gets the money spent on shovel-ready projects.
Obama is spending stimulus money to bail out state deficits (because lord knows that will teach the states to be fiscally responsible), prop up government bureaucracies (like the Department of Education), and on long-term projects that won’t start anytime soon.
None of those things will stimulate the economy or create jobs. All they do is prop up the status quo.
How come the best minds money can buy can’t figure this out while a doofy bald blogger in Kansas can?
I’ll tell you why. I don’t have any political agenda to support. I don’t have anything to lose by being honest about the reality. The politicians in Washington have a lot to lose if they face the facts – namely power. Their only hope is to put spin on the facts using the Obama marketing machine and hope that things improve on their own before the American people realize they just got their pockets picked.
The house just presented their insane health care reform bill. Everyone on the right and most of the people in the middle are freaked out about it, and you should too, assuming you have more than two brain cells to rub together. This bill places a 5.4% tax increase on individuals and businesses making over $250,000 a year.
Rich guys, right? They SHOULD have to pay more, right?!
Umm. If you think that, and I mean that in the most loving way possible, YOU ARE A HOPELESSLY RETARDED MORON.
I work for a small business. We are slightly larger than that cap. So that extra 5.4% applies to our company. Guess what folks… 5.4% IS MORE THAN SOME COMPANIES MANAGE TO ACTUALLY NET! In fact, average net profit for most companies is 3% to 7%. If you’re on the low end of that number, you’re wiped out.
But guess what, beautiful people. Companies will not take a loss because of this new tax. They will lay people off. They have to. Otherwise they could lose money, and businesses can’t exist for very long if they’re losing money.
The only thing this health care plan is going to do is stimulate unemployment.