Sunday, November 23, 2008

Shumer Suggests Another $500-$700 Billion Stimulus

Senator Shumer suggested this morning that we needed another $500-$700 billion stimulus package. This is a bad idea. The government already passed a stimulus package that cost $152 billion last Spring that accomplished absolutely nothing. The government already passed a $700 billion bailout of the financial industry. The government has already passed extended unemployment benefits, $25 billion for the auto industry, how much more is the government willing to waste.

Pelosi and Reid will not allow the auto industry to utilize the $25 billion already allocated. Instead Pelosi and Reid would rather pass another $25-50 billion bailout. Pelosi and Reid would rather pander to their constituents (environmentalists for the original $25 billion and Union Bosses for the other $25-$50 billion) than fix the problems that ail the American economy. Deflation is a problem caused by the Democrats.

By forcing the financial institutions to finance high risk loans to people that should never have received a loan, a real estate bubble was formed. The were more buyers than sellers and the price of homes was inflated. Now that we have more sellers than buyers the price of homes is decreasing accordingly. Like any investment a house is a long term investment. We should not be worried about short term valuations but long term valuations. The price of homes will rebound but first we need to rid the system of the bad mortgages.

America does not need more deficit spending. Our national debt is unbelievable. All we are doing is passing our bills on to the future generations. Our materialistic society has indebted the future. Tomorrow's grand children will be forced to reconcile the books. Today's Americans are incapable of keeping their house in order. In the near future America will be bankrupt. America has not balanced the books in a generation. No Bill Clinton did not balance the budget, he raided the Social Security administration. The burden of social security entitlements will soon overwhelm the ability of our government to borrow and pay off its obligations and entitlements.

We need to reduce the size of government. We can not keep increasing the size of government, keep deficit spending at current levels, and keep increasing entitlements while hoping for a different result. The elitists in our government are the problem. They will keep taxing and spending our futures away. Obama's stance have higher taxes and higher deficit spending bankrupt America. Should the additional $500-$700 billion stimulus become reality Obama's first year deficit will be almost twice as much as Bush's last year deficit.

No comments: