Friday, January 16, 2009

You want an economic stimulus package? Oh, I’ll give you an economic stimulus package, alright!

Here we go again…


House Democrats, working closely with President-elect Obama, just called for $825 billion in federal spending and tax cuts to revive the slowing economy, with a strong emphasis on energy, education, health care and jobs-producing highway construction.


I can’t help but shut my eyes, shake my head and chuckle at the thought that this package will actually stimulate anything other than its supporter’s sense of self worth.


Let’s take a closer look at this gargantuan spending bill shall we?


$550 billion of the $825 billion is actually government spending with only $275 billion in tax cuts, most of which will be “cutting” the taxes of people that don’t actually pay taxes. But please, let’s not bring facts into this feel-good story that Congress is peddling.


Here are some more numbers for you:


(These excerpts, by the way, are pulled directly from the Yahoo News story)

“The measure calls for $87 billion to help the states meet the rising cost of providing health care for the poor in the recession”

React: Why is it the federal government’s responsibility to bankroll the broken health care programs of the states? Why should federal tax dollars from a state that knows how to properly manage its health care costs go to bailout a state that doesn’t know how to do so?


“and another $39 billion to subsidize coverage by out-of-work wage-earners who cannot afford the cost of their employer-covered health care.”


React: Yet another welfare program, as we continue to move towards universal health care run by the ever-efficient and wise federal government. (Heavy use of sarcasm)


Also, what the hell is an “out-of-work wage-earner”? It must be the politically correct way of saying unemployed.


“More than $100 billion is ticketed for education, including money for school districts to shield them from the effects of state cutbacks in services.”


React: At least it’s for education, but again, why is the federal government doing this? Again I ask, why should federal tax dollars from a state that knows how to properly manage its educational costs go to bailout a state that doesn’t know how to do so?


Democrats also provided tens of billions in spending and tax breaks designed to lessen the nation's dependence on oil as a principal source of energy.


React: Allow me to translate this to you: more subsidies for multi-million dollar farmers that will invest more and more of their land and resources into the development of ethanol, a fuel that is more harmful to the environment while simultaneously inflating food costs for consumers.


Outstanding! (More sarcasm)


I know some of you are thinking, “Alright, if you’re so smart, you come up with a plan.”


Would I have actually written that last sentence if I already didn’t have a plan worked out?


I think you all know me well enough to know the answer is a big, fat “no”.


Here’s my plan: Eliminate federal income and corporate taxes for a calendar year.


Currently, we have spent, or are planning to spend $1.542 trillion on bailouts, “stimulus packages” and tax cuts.


For 2007 (the last year on record), the receipts the federal government received from personal and corporate income taxes was $1.470.2 trillion.


Now, I want all of you to honestly ask yourselves, which will do more to stimulate the economy, letting the government figure out a way to move around over a trillion and a half dollars to jump-start it or let people and companies keep more of their own money and let the markets correct themselves?


I think we all know the answer to that, don’t we?


Some of you may be thinking, “well, without taxes, what is the government going to do? How will it pay for things?” Well, they’re largely paying for everything with deficit spending as it is, that would just continue.


Plus, tax receipts would still flow in from social security, excise and customs taxes to pay for a number of programs.


Additionally, states would benefit as consumer spending would ultimately increase and therefore raising the amounts of sales taxes they would collect.


Businesses would be more likely to hire, people would be more willing to spend and the economy would undoubtedly improve.


Listen, I’m not actually suggesting that we continue to spend like drunken sailors. However, if our government is so hell-bent on “stimulating” the economy by spending money, I think we should, at least, do it properly.


Maybe I’m just crazy. Maybe I’m dense for not seeing how government is the answer to all of life’s ills. Maybe I’m foolish for not believing that by simply throwing money at a problem, it will magically disappear.


I guess I’ll let all of you decide.


That’s it for now folks, until next time, take care and be well.


-John

44 comments:

Anonymous said...

how you cons whine about democrats for doing things you yourselves did.

You worship Reagan as if he was your Lord and savior, yet his economic boom was entirely the benefit of a tripling of the national debt. Bush took a 5.6 trillion debt and turned it into an 11 trillion debt. You cons called it a hugely successful economy.

Now you cons whine when democrats use your own tactics. Pathetic to say the very least.

Nice try, kid. You have failed.

Anonymous said...

You're all wet. We've reached the end of our rope with deficit spending. Educate yourself: http://www.chrismartenson.com/crashcourse

Jon said...

Statist economists believe that you measure the success of a stimulus by evaluating how much money from the stimulus is spent...on anything, no matter how wasteful it is. So of course tax breaks aren't going to be popular with them, because they are not the best "bang for the buck" - as if it's their buck in the first place.

Politicians will try, but they cannot force someone to spend the extra money they get to keep from a tax break. What they don't understand is that we rightfully need to reduce our consumption. It would be a good thing for us to save more money with plans to invest it or spend it later. The last thing we should be doing is allowing the government to steal our wealth (current or future) in order to wastefully consume it (or force us to wastefully spend the wealth that was taken from us).

Liberals are living, and always have been living, in a fantasy world. A world where money grows on trees, investments in unproven technology and energy will automatically provide a greater return on investment than the evil fossil fuels, and a world where the earth will be destroyed if they aren't able to control every aspect of our lives within a few years.

Jon said...

RE: Lurching Right is crap

Reagan borrowed money to provide for the common defense of the nation - a power that is clearly outlined in the Constitution. Any subsequent economic boom was only a secondary effect of this action.

The same can't be said for what Obama and his congress want to do - borrow/print money and spend it on anything they damn well please.

nancy said...

When Raagan became president (after Carter) there was double digit inflation and unemployment. We were rationing gas and consumer confidence was very low. He put people to work and restored national pride and patriotism.
Every plan out there right now is about more spending. I heard your idea this weekend. I believe George Will is a strong proponent.
At any rate, I had the same reaction! Suspending federal and corporate taxes for a year could do a lot to stimulate the economy. It puts money back into the pockets of those who really need it and who drive this economy...we the people.

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