I don’t usually go all serious on this blog thing, but I need to say something about this “stimulus” bill.
It’s crap, and it’s dangerous.
This is supposedly patterned after FDR’s “New Deal”, and will probably be just as effective. You see, FDR’s plan did nothing to relieve the country from the torments of the Depression, moreover prolonged the whole ordeal longer than necessary. Sure, it put some small change into the hands of the peasants, but that is NOT growth; it is no more beneficial to long term prosperity than dropping a buck into a panhandler’s cup.
What brought us out of the Depression was the revitalization of industry in preparation for World War II, and the attendant jobs that it created. After the war, those businesses, and the then-trained employees went on to create one of the greatest manufacturing powerhouses this planet has ever seen. That manufacturing CREATED goods, the only sure way to economic growth.
Back in 2002, I wrote an essay that was published in our state newspaper as a guest editorial. In the article, I groused about the omnipresence of Chinese made goods, and encouraged folks to buy American whenever possible.
In 7 short years, we have gone from having an option in purchasing, to having virtually all our consumer goods made in China.
Unfortunately, I think it’s now too late to revive this nation’s industrial base; too much has left, both in industrial infrastructure and the talent required to make it work. God help us if we need to restructure to a war (a big one) machine, especially if the potential foe is China.
This rant is not to rehash that issue, but to point out that throwing money around this time will be just like that dollar in the beggar’s cup- it’s gone. IT IS NOT ECONOMIC GROWTH.
So what WILL we get?
Most likely money to line the pockets of a chosen few, with a few bones left to pay people to dig holes and then fill them up again (aka “rebuilding infrastructure”).
Increased taxes to pay for it all that will probably be generations in the repayment.
Loose money and increased taxes will launch inflation that will surpass anything seen in this country.
What we surely will NOT get is any real way out of this quagmire.
So, get ready to party like it’s 1799, because this plan will generate an economy where the life in those times will be status quo for ours.