Sorry for the stiff political post today, but I have been disturbed by what is going on in our government these days.
Let me set the stage with a quick economics primer... In our economy, a very consumer driven economy, when a dollar is injected it has a multiplier effect. It is spent time and time again and beause we have very skilled workers and servicers that dollar's value is multiplied time and time again.
Well, that is the premesis for the government's stimulus plan. If they inject capital into our marketplace then it will have a return greater than the base amount. Hmm... Confused yet? Well, I agree with the theory, but don't forget that this is yours and my money that they are playing with here.
However, think of this... If the decision makers in Washington are so confident in the multiplier effect of capital into the market place, why aren't they interested in cutting taxes for everyone in the first place?
Answer... Control.
If taxes are cut, then you and I have control of how the money is spent (and multiplied). But, if our government get its hands on our taxed money, then they get to choose its destination to be spent. Hence, the ultimate big government control scheme, and the repbulicans and democrats are all guilty.
Now, to clear up my position about the stimulus... There is a portion of the stimulus bill that offers tax breaks and cuts. For this I am pleased that our government decision makers are not completely oblivious to the power of the peoples abilit to stimulate our economy.
Subscribe to:
Post Comments (Atom)
1 comment:
Sam, lets take a look at history, since its usually a good teacher. Bush had two stimuluses in his career. In 2001 and 2008, both of those did absolutely nothing to benefit the economy. The only move of his that worked was the tax cuts he proposed in 20002. Just like Kennedy proposed in the 60s and Reagan in the 80s. Both worked like a champ both times. The wonderful ideas of the Depression that Barack keeps referring too took 10 years to get us out of. History is not on Obama's side on this one. The markets have spoken about how much they like his plan so far. - McD
Post a Comment