Feb 14, 2009

Buy the Numbers?

OK – do this little exercise yourself if you don't trust me.

$787,000,000,000 / 306,000,000 people = $2,571.90 per person

That's the so-called stimulus package divided by roughly the number of people the US census bureau estimates right now – so, let's round our result to $2,600 per person. I'm afraid the Republicans are right. That just isn't much of a stimulus. But wait! That's debt per person – right? After all, we're not getting a check in the mail and if we did we'd still have to repay it eventually. Oh, maybe some of us will directly benefit from the Great O'Spendulus, aka the “American Recovery and Reinvestment (ARR) Act of 2009”. For instance, those people qualifying for government assistance in weatherizing their homes. Now, there's a role for the federal government the founders overlooked!

So, here's my proposal to correct the problem. The government buys a Walmart gift card for every man, woman and child in the United States with the generous sum of $2,500 attached. Mine is a modest proposal, so I rounded down a little to save us all some debt. Why Walmart? Well, Wally World is already socialist in nature – limited choices at “fair” prices. And, you can buy almost anything there. Seniors can get their drugs... the kids can buy a variety of toys... liberals will find all their favorite Obama authored books and Bruce Springsteen CDs... conservatives can stock up on guns and ammo... why, if it is a superstore, the spendthrifts among us can even get food there! And think how stimulative it would be! Every manufacturer with products at Walmart would see revenues go through the roof. Toy makers, tire and hardware manufacturers, plant and food growers, drug makers... you name it! Jobs, jobs, jobs and not just at Walmart or whatever alphabet soup of government make-work programs Obama's team is yet to reveal. I'm a genius!

Seriously though, this is my evidence that Obama doesn't want economic recovery. It took me less than ten minutes and less than a page to develop this idea that truly would be stimulative and less expensive than what the Democrats just did to this country in the so-called stimulus package. In just under a month, more than a 1,000 pages and some 787 billion dollars of debt, the Obama administration has planted our collective feet firmly on the road to serfdom.

Why? I think there are many reasons. Perhaps first, because he can (as in “Si, se puede” or “Yes, we can”). He is a great deceiver – maybe The Great Deceiver. Did you hear what he said at the press conference about economists agreeing the New Deal type intervention was necessary?

“Most economists, almost unanimously, recognize that even if philosophically you're wary of government intervening in the economy, when you have the kind of problem we have right now -- what started on Wall Street goes to Main Street, suddenly businesses can't get credit, they start carrying back their investment, they start laying off workers, workers start pulling back in terms of spending -- when you have that situation, that government is an important element of introducing some additional demand into the economy. We stand to lose about $1 trillion worth of demand this year and another trillion next year. And what that means is you've got this gaping hole in the economy. “

Economists almost unanimously recognize that FDR's New Deal was a disaster which deepened and prolonged the Depression. Politicians argue for government introducing demand into the economy – economists argue for government unfettering the free market to let failing corporations fail and strong one's innovate, to increase efficiencies and let prices fluctuate according to nature's law of supply and demand. FDR's own treasury secretary, economist Henry Morgenthau Jr. spoke before Congress in 1939 and said,

"We are spending more money than we have ever spent before and it does not work. I want to see this country prosperous. I want to see people get a job. We have never made good on our promises. I say after eight years of this administration we have just as much unemployment as when we started and an enormous debt to boot."
But Obama is smooth and articulate. I bet he had 54% of the people listening convinced.

He also said, “What got us into this mess is banks taking enormous, wild risks with other people’s money...” Here's a case of deception by not telling the whole truth. The government – specifically Democrats – instituted government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, which, because they were backed with taxpayer's money (“other people's”), took enormous wild risks on bad loans. They did not originate them (they bought them and sold securities based on them), but the banks that did were responding to the Community Reinvestment Act (CRA), which threatened them with anti-discrimination lawsuits if they didn't lend to high risk cases - as if all money isn't green. And who imposed the CRA? Democrats in government. Now, there's also the securities rating problem where GSEs trying to mitigate their risk by selling securities which bundled good loans with bad ones, managed to get their securities rated triple-A. I don't know who was responsible for allowing this part of the problem, but whether Republican or Democrat, I'm 99.99% sure government had something to do with it. But Barry would have us believe it is all the “banks” and “Wall Street” who are irresponsible and therefore, responsible. B.S.!

Other reasons why our new president doesn't care about economic recovery:

- more government dependency = greater Democrat power and influence

- moral vanity and sanctimony = I'm so good and right, historical facts don't matter.

I don't think I need to elaborate on these last two.

Do you think there's any significance to the fact that Democrats passed the ARR Act (which I will henceforth call the Piracy Act of 2009) on Friday the 13th? Buy the numbers? You and your kids and your grandkids just did. $787,000,000,000 worth. Plus interest.


Anonymous said...

Right on, Western Chauvinist.
A great post. Well done.
Your post is so concise, so accurate, so simple; the Messiah is on the Ego Mountain and can't come down to reality where most of us live and work.

The real question is this: is America willing and capable of fighting back in the next mid-term election? Just think, with enough votes and new representatives, Pelosi will have to give up her chair, her new jet, and all her California babble, and take a back seat. We'll see is enough sane people are left.
Again, well stated, and a great post!!

Cathy said...

No. I don't 'buy' anything about this scam and I'm afraid your figure of the price per person will ultimately be proven to woefully low.

When they're finished ruining the economy with their stimulus they'll blame Bush.

Currently the messiah's administration is trying to label CO2 as a pollutant. This will further handicap economic recovery and future growth.