Thursday, December 18, 2008

The new president's stimulating faith in economic witchcraft

Could somebody tell me who convinced Mr. Spare Change You Can Believe In that running up the credit cards is a brilliant way to resolve our economic difficulties? He knows that the balance has to be paid, right?

If we piss away $850 billion now on digging and filling holes, organic faerie-dust-powered cars and free-range IRS offices, and the inevitable pork frenzy, the supposed recovery is going to come with a hefty monthly payment plan.

That's especially true on top of the "hey, I've got six months to live" spending plan the feds have been on in recent days, which put "taxpayers more than $1 trillion in the hole even before the astronomical costs of the economic bailout were taken into account, according to an annual report released Monday by the White House."

As you and I could probably guess (but it's a revelation to government policy makers) stimulus spending is no panacea anyway. To spend money, you have to tax it, borrow it or create it out of thin air -- and all of those approaches take purchasing power out of the pockets of the private sector. The general result is that stimulus spending stimulates nothing but government, leaving the economy worse than ever.



Anonymous Anonymous said...

we are in very very deep trouble as a nation. all of these 'bailouts' and 'stimulus plans' are just smoke screens for the politicians to give trillions to their buddies at taxpayer expense. the 'big 3' automakers will go under regardless, our government will continue this madness of printing dollars which are backed by nothing until hyper inflation sets in resulting in world markets refusing to trade them for oil. when that happens its the end of us because right now the ONLY thing giving value to our dollar is the fact that it is the currency used to trade in oil. may whatever god you pray to help us.

December 18, 2008 2:29 PM  
Blogger DC said...

Great post. Everyone who favors the bailout (the minority who do) need to realize: this money has to come from somewhere! In the end the private sector (which creates jobs and the tax revenue in the first place) is hurt. This means the government is actually hurting the people and the companies it is trying to 'help.'

David Carlson Politics

December 18, 2008 6:55 PM  

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