Straight talk about the Economic Armageddon Plan.
Without boring you with the details of why I believe these to be factual, I’ll just give you the list.
There is only one way the expense of this bill can ever be paid. Inflation. We are facing massive inflation at some point down the road if this bill passes as it stands now. Just think about Social Security. We’ve been fretting over how to fund it for years. This bill dwarfs Social Security.
That one point is far more important than the rest, but they follow.
“Act in haste, repent at leisure.” By hastily ramming this bill through, there has been little or no opportunity for a true analysis of what it says and what it will do.
The situation is the result of governmental meddling in the free market. Fannie Mae. Freddie Mac. Artificially low interest rates for bad risks.
The whole thing could have been mitigated by declaring a moratorium on the mark-to-market rule.
It isn’t impossible to place appropriate values on the dreaded mortgage-backed securities, it’s just difficult. It might not even be that hard.
The Government has no ability to make sensible business decisions for banks or car manufacturers or any other industry. And “assisting” one company automatically disadvantages its competitors.
It’s as important economically for bad businesses to fail as it is for good ones to succeed.
For a “tax cut” to work as a stimulus it has to be permanent. Otherwise, it does nothing to engender confidence in the future.
A reduction of the top income tax rate to 25% with other rates commensurately lower would solve the current problem better than anything that been proposed so far (OK, that’s just my opinion).
Any part of the bill that doesn’t inject money directly into the pockets of consumers or producers is not stimulus. The fact that so much of it’s there is shameful.
Spending on projects alone is not only not enough, it doesn’t really help much, because the jobs aren’t permanent. And much of that money may well end up in Mexico.
President Obama either knows less about economics than many of us here, or he really doesn’t care what he does to the economy or to the country.
The popular press has no interest in reporting, but great interest in cheerleading. They’ve abdicated their prime responsibility.
Bailing out California makes even less sense than bailing out GM and Chrysler. Nobody forced California to enact laws and policies guaranteed to cost more than the state could afford.
The current bill re-enacts the policies of the 1930’s, which only lengthened the depression.
President Obama tonight invoked the “lost decade” of the 90’s in Japan, without realizing he is urging us to follow in their footsteps.
The auto executives appear before Congress soon. Which among them will fly to the meeting, and which will hitchhike? “We’re sorry, Mr. Chairman, but Chrysler Chairman Smith hasn’t arrived. He’s still trying to get a ride on I-95. He wasn’t about to waste money on more expensive transportation.” (Sorry, I couldn’t resist that.)