
How can the "stimulus" package be so crucial...and yet it's still going to take us years to recover?
Stimulus Package Is Not About Stimulus, It’s About Power
Over and over again we hear President Obama talk about the need for “immediate” action to ward off our economic woes. Yet, then he tells us that his special stimulus plan; chosen and designed specifically to ward off our economic woes, will not do the job because we will still be in recession years from now.
The President is trying to have it both ways. First, he tells us that we must do the “stimulus” for the good of the country, and then he backpedals and tries to distance himself from its inevitable failure.
How else are we supposed to understand his repeated statements about this economic downturn lasting “several” more years? The real reason is that all these financial maneuverings being advocated by the Obama team is really not about fixing our economy at all–it is about grabbing and entrenching as much power in the hands of the Democratic party.
Politicians are interested in one thing: power. They have no expertise in the areas that they will soon be overseeing. Politicians expertise is in getting themselves elected to office. But soon they will have the power to dictate policy to those people who actually do have the talents earned in their particular industries.
People who specialize in areas such as running banks, financial services companies, and designing automobiles will be forced to take their orders directly from Washington. Politicians will be, in effect, the CEO’s of many of our major industries; industries that they have no specific talent or training in. Toss in health care and we’re taking a huge portion of our economy out of the hands of its most productive and vibrant force: the private sector.
Thomas Sowell wrote a brilliant column about this. He always has a few pearls of wisdom in each of his essays. What Dr. Sowell explains is how ineffective “infrastructure” projects are as a means to getting out of a recession. These projects themselves take years in planning before they are actually given a go-ahead. To the degree that they ever produce any results, those effects are years away.
If the goal is to get money flowing through the economy again, this is precisely the slowest method one can opt for. Tax cuts, on the other hand, give people an immediate benefit and they would spend more right away.
Here is President Obama’s speech about his latest financial proposals regarding the mortgage markets. Scary stuff.