Stimulus money is a joke

Discussion in 'Economy' started by JimJones, Jul 9, 2009.

  1. JimJones
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    JimJones Member

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    For a month now, it’s been rumored that our government might be thinking of passing a second stimulus bill. What the mainstream media is actually missing is that this would be a third stimulus. Bush and Pelosi passed a bill in Feb. 2008 for $152B that supported $600 for individuals and $1200 a couple through tax rebates. It also gave business a few new tax breaks. In 2008, despite the issues with Fannie Mae, the Real Estate Industry, or the start of some of the banking failing our unemployment stayed manageable.

    Obama took office January 20, 2009, were we saw a 1% increase leap in unemployment from December through February. Obama put pressure on law makers to pass the stimulus (2) bill, which was done so fast that our elected officials voted on it without reading a damn word. Obama said, if this bill got signed into law we would stay under 8% unemployment, but we were already looking at 8% by the time it was passed.

    We were told that the stimulus bill of $787,000,000,000 would be used for road construction jobs; at least that’s how Obama sold it. What happened to all those shovel ready projects? The reality is that the bill had less then 5% of almost a trillion dollars allocated for road construction. Example of where your money went. Florida built with their money a tunnel going under the highway to stop turtles’ from crossing the road. How sweet, do they get a coupon at the Holiday Inn too?

    At the end of the day, Joe Biden warned us but America was so hypnotized with their new President and trusted that he know what change was. However, change came in the form of a U.S. government panic. They went from creating 3 million jobs to saving and creating 4 million jobs with this money. At least that was the spin we heard. Since saving jobs can’t be calculated easily lets just look at today. Over a 500,000 (half a million) people applied for unemployment for the first time, (THIS WEEK). I see no jobs being saved and the only creation of jobs are with in the government, which has added about 78,000 news employees to the government payroll. As quoted on Official Tax Day TEA Party, July 4th, 2009.

    What makes this worst is the fact that only 10% of the almost trillion dollar spending bill has actually made its way out to the economy. It’s also been noted by some analyst that by the end of 2010 we will only have 50% of this stimulus money spent. We need the jobs NOW, not later this year, not in 2010, not in 2011..but NOW! This stimulus spending bill is a freaking joke as it doesn’t do a damn thing to help us with our issues today. So why was this money spent? Pelosi and Reed, and the reset of the Democrat’s had pulled together every spending project they had dreamed of over the past 20 years. They only have a small window of time while they control of all three branches of the government to get this type of spending approved. With eyes wide open in front of the nation they used the economic downturn as a vehicle to pass such a bill.

    Every month we are seeing tea party’s that are protesting this spending. When will our elected officials going to take a hint that we are not happy. We want change, the type of transparency and fiscal responsibility that was promised to us during the election.

    People, this economy is going to get only worst unless ‘we the people’ stand up and stop it. Obama has a boss, Congress and the Senate also has a boss that they report to. That boss is us the People of the United States. Let’s start acting like management and clean house of those that are failing to represent us the way that they’re bound to under the U.S. Constitution. Democrat, Republican, or Independents, we the people expect a few things. We expect that you represent those that voted for you by reading the bills that you are voting for. We expect that you vote on these bills not with your party in mind but us who elected you in mind. We expect you to say ‘no’ to your party once in a while to stop wasteful spending that will harm us with more taxes. Bottom-line, WE THE PEOPLE OF THE UNITED STATES EXPECT MORE OUT OF YOU! Do your job or be prepared to be voted out of your office.

    Today I hit a wall and I am pissed off. I for one will make a difference to bring change. I am a citizen and I expect more!

    Source: bucksright.com, Fox News, Cincinnati Enquirer, teapartyday.com

    -JimJones

    http://twitter.com/borderlineiq.com
     
  2. Baruch Menachem
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    Baruch Menachem '

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    To be fair, under kensyian math which was demonstrated in great detail to me when I was in college (and I failed to keep notes on, as I thought it was a case of "figures don't lie but liars figure") government spending has a larger effect on economic activity than tax cuts. Part of this is the old "consumption function" where it is argued that tax cuts go to people who will have higher incomes and spend less than folks who have lower incomes, who won't see much of a tax cut, but will spend all they get. So government spending focused on low income recipients goes right into consumption, which kick starts the economy. Tax cuts don't stimulate, as most of the money people would get from a tax cut gets saved, rather than spent.

    I think this is hooey, myself, as I think there are quite a few false assumptions in there.

    But this is what they were taught in college, this is the theory that drives all the economic models in Washington right now. So when they argue stimulus, this is what they are talking about.
     
  3. JimJones
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    JimJones Member

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    Baruch, I understand and know what you are saying well. Tax cuts and Gov spending are really the same money. It’s money in and Money out, that we are talking about. What it comes down to is who’s going to spend it and where it ends up. Also, a factor that needs to be looked at is speed in which the money affects the economy. Stimulus money $787B (over a trillion with interest) to date has only had 10% allocated, and even less of that 10% has actually been spent. Yet our hole keeps getting deeper and deeper. It’s to slow and wasteful.

    Tax cuts on the other hand could be in place with in 2 months and ‘stimulate’ the economy quicker and can be managed quicker and easier with a lot less waste involved. Also, with tax cuts you can have a start and end date. At the end date, the gov will start receiving their tax revenue back that was injected into the economy. Spending programs makes debt. To cover the debt taxes will need to be raised to cover the spending, this creates a false bottom to the hole we are in.

    My concern for now is the lack of and the speed in which this money has been used. Can you say a snail’s pace.
     
  4. Baruch Menachem
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    Baruch Menachem '

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    v e r y s l o w l y

    The whole thing is one of those interesting examples where academic theory goes up against the real world and goes splat. The whole point to the Keynsian theory is that government spending would work faster and better than the tax cuts would.

    I have a bridge for sale, one owner, if you believe that.
     
  5. JimJones
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    JimJones Member

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    lmfao ! to funny!
     

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