This Stimulus is Moving Through  

Posted by LibertyCast in ,

The stimulus package as many have already seen in the news is that it is filled with pork (or unnecessary ineffective spending), and in many ways this has been very true. It is also in the unfortunate side of politics' nature. If someone or some group is not on board bargaining mechanisms come into play in an attempt to buy someone's vote, and a lot of times this will mean that you might have the opportunity to see something you want thrown in with the bill. Under the current market conditions we are driving up the debt, and printing more money to compensate, we are devaluing the dollar and risk horrible inflation in the near future.

Economists are torn on this bill in whether it will be effective or not. The problem with this package is that we are increasing the debt on a gamble. If we don't stimulate the economy with spending it will be hard for it to turn around. The issue being confidence. Companies have lost confidence and are afraid to invest. Some at this time are willing to invest but in our condition some is not enough. Until the motive is there to invest this is going to be a rough ride.

One option for this to occur is is to let these bad businesses who made bad decisions fail. If they fail and go bankrupt they will be forced to consolidate. This consolidation will open the door for new businesses to compete in the market; recreating a competitive market will give hope back to the economy and will provide incentive to invest.

To aid in this tax incentives are a smart move. To provide tax breaks will encourage investment into the economy. In our current market we need to restore confidence before this will be effective. Bailout with billions hasn't been effective as the money is not being spent, and tax breaks will not be effective until competitive conditions occur. So again tax breaks are a very viable option to aid the economy though it is no more viable than a debt building bailout in a volatile marketplace. We have to restore economic confidence.


A Note On the Stimulus From Ron Paul:



Official Info On the Final Bill *UPDATED*:

The Final Official Bill here.

The Official Financial Assestment here. (This is not recovery.gov but official CBO documentation.)

This entry was posted on Saturday, February 14, 2009 at Saturday, February 14, 2009 and is filed under , . You can follow any responses to this entry through the comments feed .

2 comments

I am not totally on board with this package. I just wanted it to contain stimulus for our infrastructure, education, health care, and tax cuts. To do nothing would have been the lesser of two evils. It just bothers me that nothing is ever said about the trillions spent by our government to kill people.

February 20, 2009 at 11:30 PM

Well you are right doing nothing is not going to help at all. However I am not totally convinced that plugging money into the economy is going to be any more effective at this point. There is very little confidence in our economy right now and without confidence I do see much stimulation occurring because of lack of motivation and skepticism. We have regulation which has sent us in a bad direction that needs to be fixed and we without a doubt need to do something about that. In the end I hope this package works. I am a skeptic here myself, but I hope I'm wrong.

February 21, 2009 at 5:18 PM

Post a Comment


 
 
Google Groups
Subscribe to The LibertyCast Message Board
Email:
Visit this group