President Obama had the audacity to say that only the government could end this recession.
It is absolutely true that we cannot depend on government alone to create jobs or economic growth. That is and must be the role of the private sector. But at this particular moment, with the private sector so weakened by this recession, the federal government is the only entity left with the resources to jolt our economy back to life. It is only government that can break the vicious cycle where lost jobs lead to people spending less money which leads to even more layoffs. And breaking that cycle is exactly what the plan that’s moving through Congress is designed to do.
Excuse me, Mr. President, but the Federal Government does not have the resources. In order to pay for this stimulus, you'll either need to borrow the money, tax the populace, or have the Federal Reserve print more dollars and use them to buy more treasury securities.
The first two actually exacerbate the problem, since they must first take money out of the economy before it can be put back in. The last one simply leads to inflation, since vastly more dollars are chasing the same amount of scarce resources.
Our government's receipts totaled about $3 trillion last year. We out-spent that by about $450 billion. In other words, the Fed doesn't have the resources to do what it already is expected to do, and the President wants to triple its deficit in hopes of some magical stimulating power. Despite the fact that no such spending plan has ever lead to economic growth that could be considered significant, he wishes to spend more money in one bill than any government in history has ever spent.
It won't work.
No, Mr. President. The only entity with the resources to "jolt" us out of this recession is the Private Sector, without which no "stimulus" would be possible--or even perceived as necessary.
Put money back in the hands of those who earned it, Mr. Obama. Make our tax rates more competitve with the rest of the world and allow those who work hard to enjoy the fruits of their labors. Do that, and you will have your "stimulus."
But I guess it's too late for that, isn't it? Your pork bill has passed. It's in conference. Soon, it'll be bigger than ever. $735 billion becaome $820 billion, becaome $838 billion and may soon reach $1 trillion.
Brace yourself, Mr. Obama. Despite the steering of Senator Reid and Congresswoman Pelosi, this catastrophe will be wholly owned by you.