Stimulus Package

Talk currently floats around the halls of the U.S. Congress about putting together another "stimulus" package to help the floundering American economy. The idea behind such packages is that the government mails checks to citizens who then turn around and spend the money. The consumer spending supposedly invigorates the economy, which in turns increases job growth. Unfortunately, economists point out, the dynamic isn't as simple as that. If a citizen spends his stimulus check on imports, the profits benefit the exporting nation, not the United States. Also, if the citizen squirrels the money away for a rainy day, again, the money isn't being pumped into the economy. The first two stimulus packages cost billions of dollars to fund and couldn't prevent our economy from sliding into a recession. It's hard to justify a third.

I haven't heard one economists go on record saying they think this is a good idea. Nearly all of them agree that writing Americans a check for $300 won't help the economy in any long-term way. Instead, they advocate that the government should start pumping money into wide-scale infrastructure projects--roads, green energy, government buildings, etc--something that provides a permanent benefit and creates jobs. Americans don't want to hear this, but they haven't been managing their money any better than our government; if you hand Joe the Plumber a check for $300, I guarantee he's going to turn around and blow the whole wad at the nearest Hooters, which may help Joe cop a feel, but doesn't benefit the macro American economy in any significant way.

I do think our friends in Congress need to get their heads examined. The Democrats that are currently building consensus for this stimulus package still support the notion of spending even more money our government doesn't have. I think I heard Democrat Henry Reid quoted as saying that he was prepared to raise taxes to fund a new stimulus package. Um, huh? Give out free money to your citizens, turn around and tax those same citizens, and use that tax revenue to fund the stimulus package. I've got a crazy idea! How about no stimulus package at all? How about Democrats and Republicans sit down and start thinking of ways to SAVE money, not spend it?

A revolutionary idea in American politics, I know.

In many ways, our politicians remind me of the jackasses at AIG who took more than a $100 billion in bailout money from the U.S. Treasury and then spent $500,000 at a spa and another $50,000 at a English resort. Our politicians and corporate officers still don't seem to get it. Our country is $11 trillion in debt, with a more than $500 billion budget deficit. When will it dawn on them that they can't continue spending even more money none of us have? When our debt hits $15 trillion? $20 trillion? I'm thinking if we ever reach that point, the entire world monetary system could collapse. It nearly is right now.

So if you feel inclined, write your Senators and Congressmen. I recommend you tell them to vote "no" if a new stimulus bill hits the floor. Tell them to instead invest any discretionary money they think they might have into something tangible, like a green energy package advocated by Al Gore or that Pickens dude. Tell your politicians that you want to hear them start proposing legislation that is going to address our $11 trillion debt, our unfair trade balance, the issue of world free trade agreements, job creation, job retention, and energy policy. I plan on telling my representatives, Culberson, Cornyn, and Hutchinson, that addressing the national debt should now be their number one priority.

I hope you agree with me and mobilize.