Wednesday, November 25, 2009

A Second Bite of the Apple

Nancy Pelosi is contemplating another budget busting stimulus package. In Pelosi’s infinite wisdom she believes the American public longs for yet another failed stimulus wrapped in the guise of jobs creation. The $787 billion original package wasn’t wasteful enough for her. The Democrats simply did not receive enough pork for their constituents. Now she would love nothing more than a second bite of the apple. America has to step up and rebuke the spend thrift democrats. They had an opportunity to get the economy moving in the right direction and the democrats blew it.

The $787 billion dollars in wasteful spending was sold to the American public as a jobs creating or saving vehicle. The unemployment rate was supposed to stay under 8% if it was to be passed. At least 3.5 million jobs were supposed to be created or saved. Yet today there is only anecdotal evidence of any jobs being created or saved. In fact, most of the jobs being touted were saved, very few new jobs were created. I know the administration is touting only the gross projected jobs created or saved. My concern however is the number of net jobs created or saved by this wasteful spending. Even if there were concrete jobs created or saved of the magnitude the administration insists, this is but a gross number. The question that needs to be answered is how many jobs were destroyed or lost due the budget busting bill?

The government stole money from the future taxpayers to shove a stimulus package down our throats. In the process they took money out of the private industry and placed it in the hands of a bureaucratic government. The stimulus package was full of gimmicks that cost far more than the revealed price. The cash for clunkers program gave away money to push for more auto sales in the short term. This increase in sales will have lingering effects far into the future and cause inflationary pressures as the economy recovers. The shortage of vehicles caused by the destruction of real property will result in increased prices for the remaining real property. Additionally, beyond the inflationary costs that are sure to come what about the cost of the bureaucrats running the program in the first place. Was the red tape worth the cost? In all likelihood this gimmick will cost much more than the claimed price tag. The return on investment will be far less than any private industry could ever institute and stay in business.

The stimulus package robbed from the private investors. When the government takes money from the private arena and spends it as it sees fit it is future growth that is harmed. Investors will not continually invest when more of their hard earned money is taken from them. There is no reason to invest when the government does it for us. Of course the government is inefficient when it comes to pumping money into the economy. Government spending chokes off private investment and becomes the only way of getting dollars into a failing economy. Research the great depression and one finds that government spending robbed the private sector of much needed cash. Once the public sector became the fuel for the economy there was no exit strategy. With public dollars the 1930’s economy was artificially propped up, when the public dollars evaporated so did the economy. America did not emerge from the great depression because of the great deal, America emerged in spite of the great deal. Only an the second world war pulled the world from the great disaster.

Now the democrats are looking at taking even more money from future generations to cover up their last pork filled non stimulus package. Nancy Pelosi isn’t even willing to call her new gimmick a stimulus. Pelosi has resorted to calling her gimmick a jobs creation bill. Funny, how the last stimulus bill was hailed as a jobs creating bill for funding shovel ready projects but now a specific bill is required to address jobs. Why would an angry public trust the spend thrifts in Congress? This Congress has done nothing but spend our future away and has nothing to show for it. If Nancy wants a jobs bill why not find money that currently exists? The budget outline from the Obama administration set aside huge sums of future cash for a government run health care program and cap global warming junk science, yet we need even more deficit spending to create jobs that were already supposed to have been saved or created. A liberal columnist said last spring that deficit spending is not a bad thing. The reality is that government deficit spending in the short term when the economy is slow can prime the pump of growth. However, perpetual deficit spending is never a wide choice. All one has to do is research the private debt held by individuals. Bankruptcies rarely are the result of a one time deficit spending deal in time of need. Bankruptcies happen because of long term deficit spending where the individual finances crumble under the weight of the debt load. This is what is happening in States like California, it is only a matter of time before the National debt load will crush the American dream.

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