The Stimulus Deal Is A Lousy Deal

Discussion in 'Current Events' started by JimofPennsylvan, Feb 12, 2009.

  1. JimofPennsylvan
    Offline

    JimofPennsylvan VIP Member

    Joined:
    Jun 6, 2007
    Messages:
    385
    Thanks Received:
    56
    Trophy Points:
    78
    Ratings:
    +83
    The Stimulus Deal is done so say our leaders in Washington, but it’s a lousy deal for the American people. The economic stimulus power of the deal is the problem, it is of questionable strength, in fact and in reputation it falls short to what America was looking for. A piece of legislation doesn’t become law until it is passed by a majority of members in both the House and the Senate chambers. Americans who hold onto the hope that America can return to and surpass her greatness and be everything a great country should be should hold on to that fact and maintain hope that the bill can still be fixed.

    The bill is three-quarters legitimate, it is only around a quarter of the bill that needs to be fixed. In short, what needs to be done is drop the non-stimulus spending, use those monies for stimulus spending and add the crucial initiatives that were dropped in the conference committee on this bill. This bill is readily fixable from an ideas standpoint it only takes character and will to get it done. It is in rank and file members of Congress including both party’s interest to fix this bill and not let it pass in its present state. It is moderates in both parties who hold the well-being of America in their hands with respect to this bill, and when it is said moderates that means members who have as their constituents, that is voters that voted for them in significant numbers, mainstream America and that includes the majority of rank and file members in both party’s in both chambers.

    To moderate Democrats they should consider the following. The history of this bill is clear, the only question which is up to you is whether or not this history is the complete history of the bill. The history of this bill is that Nancy Pelosi and her liberal allies wrote this bill; these individuals took their new found power from the Democrat party’s success in the past election and wrote wrongs done to them in the past, they advanced their social agenda instead of making this solely an economic stimulus bill which is what America needed. Mainstream America won’t think the right decisions were made when the initiatives in this bill are made clear to them. Come the mid-term elections America will still be hurting economically and the Democrat party will lose a significant number of voters because of the indefensible elements of this bill that have nothing to do with economic stimulus.

    To moderate Republicans they should consider the following. Your party is gaining support because of the Democrats’ blunder in not making this economic stimulus bill an economic stimulus bill to a significant degree. The question you have to ask yourself here is are you going to advance your party’s interest or do what is best for the American people. Moreover, the Republican leadership’s message on this stimulus is a flawed message and the Republican party won’t quite pick-up the level of American voter support they think they will. The Republican party plan on the stimulus legislation of focusing on tax cuts is wrong the business tax cuts won’t create sufficient number of jobs (businesses increase executive compensation, pay dividends and buy back stock with income from tax cuts) and neither will the personal income tax cuts (people pay down debt, save and spend tax savings on purchases of foreign made goods). The state aid in the economic stimulus bill is very much legitimate because it staves off job losses and it keeps taxes from being raised. The size of the economic bill is legitimate because considering the job losses that will almost certainly occur by the end of this year, the American economy will need to create four million jobs that don’t exist today by years end. The proportion of the stimulus bill that goes to direct government spending is legitimate, America needs jobs and lots of them and the only option to achieve this is for the government to create them and the reason why they need a laundry list of spending is that is the only way to reach the high number of new jobs that are needed by the U.S. economy.

    The bottom line here is that America absolutely needs an economic stimulus bill. Because of this moderates in both parties can obtain the power to force their will in this legislation they only need to stick together. On the TARP legislation last September, rank and file Democrats subverted the will of the Party Leadership and did not pass the first TARP bill and within a week a new TARP bill was passed; rank and file members of Congress can do it again. Rank and file members of Congress using mainstream America values and common sense should draw up a list of the elements they want out of this bill, elements increased in this bill and new elements added to this bill and go around to rank and file members and collect the needed number of votes to pass this legislation. To members of the general public to know what is in the compromise bill with 100% accuracy is not possible but based on media reports and the House and Senate versions of the Stimulus bill one can have a responsible conversation on what should be in the bill. This rank and file member bill shall be called the bipartisan economic stimulus bill.

    This bipartisan bill should strip out all the indefensible non-stimulus spending in the bill, eliminate the following: the $1.1 billion for Head Start programs; the $12.4 billion for Education
    for Disadvantaged Children programs; the $13.5 billion for Individuals with Disabilities Education Act programs; the $13.98 billion for Higher Education Assistance Spending; the $7.5 billion for Education Incentive Programs For States; the $13 billion for the American Opportunity Tax Credit (Leave the Hope Scholarship Credit which it would replace).

    Take this $61.5 billion savings and spend it on major infrastructure spending which meets industry and the American peoples’ expectations in deed and in reputation. Increase Highway and Bridge Infrastructure spending to $45 billion (mandating one-third must go to capacity expansion projects) and increase public and rail transportation spending to $ 25 billion (mandating one-third go to capacity fixed-rail expansion projects) – these transportation infrastructure increases will use up $24 billion of this $ 61.5 billion. Increase spending on the spread of broadband especially to rural areas that don’t presently have it by $10 billion taking the bills total spending to around $20 billion. Increase spending on the nation’s electricity grid to bring it up to the state where it can meet America’s present and future needs which will increase the bills total spending to around $20 billion.

    This bipartisan bill should go through the compromise bill and insure there isn’t major increases in government bureaucracy growth brought on by this bill. Some of the compromise bill’s provisions have such restrictions others don’t, these would be provisions that say management, administration and oversight cost is limited to a maximum of 3.5% (5%, $5 million, $15 million or the like) of the spending initiative. This seems to be especially relevant with the Health Information Technology Initiative and the Comparative Medical Research Initiatives one gets the sense from reading this bill and listening to politicians that America is going to be stuck with big bureaucracies here.

    What is shocking about this compromise is that the conference committee got rid of two of the glowing positive features of the stimulus bill. The $15,000.00 tax credit for home purchases and the interest rate and sales tax income tax deduction for new car purchases. The home purchase tax credit is crucial, crucial, crucial. New home construction spurs a lot of truly lot of employment and they are never going to get back to normal without dramatically cutting the supply of home for sale in the real estate market – this initiative would have been extremely effective helping this problem. This initiative should be inserted into the bipartisan bill at least at the level of a $10,000 tax credit. As for the income tax deduction related to new car purchases what does Congress want to see another 50,000 plus people layed-off connected to the auto industry; this industry is struggling in the extreme it is a vital industry to the American economy the additional $ 9 billion cost to add this program back in to this bill is worth it, this initiative should be added to the bipartisan bill.

    The bipartisan bill should add provision which give a one or two year tax holiday on repatriated profits from U.S. companies foreign subsidiaries back to the United States. Reducing the tax rate on these monies from 35% to 5.25% for one or two years will bring $500 billion back into the United States. Even if only a conservative estimate of like 15% of that amount is put back into business development and job creation that is significant. Criticism that this one to two year tax holiday will cause the shuttering of America’s plants and off-shoring of American jobs is ludicrous, it didn’t in 2005 the last time it was used and common sense indicates it won’t now. It is a no brainer to do this. In addition, the bipartisan bill should means test the Cobra assistance provided by the bill to layed off workers. Some of these layed off workers are wealthy Americans that can afford to pay for their own health insurance. It is not responsible stewardship of taxpayers money not to means test this program. On the digital to analog converter box program spending should be decreased to $350 million with $260 million restricted to coupon expenditures. In 2007, it was estimated 14.3 million households relied on a TV antennae for TV reception as of January 2009 12.6 million households had been sent coupons for converter boxes. The numbers here don’t justify the $650 billion in the compromise stimulus bill. Spending in the nature of “Violence against women prevention and prosecution” programs, “Assistance for victims of Crime” programs, “Fighting internet crime” programs, and “Renewing Section 8 Housing” programs don’t belong in an economic stimulus bill.
     
  2. auditor0007
    Offline

    auditor0007 Gold Member

    Joined:
    Oct 19, 2008
    Messages:
    12,566
    Thanks Received:
    2,255
    Trophy Points:
    255
    Location:
    Toledo, OH
    Ratings:
    +3,218
    The housing credit was changed from $15,000 to $8000 and it's only good through August. In truth, the housing credit will do little to reduce the overall glut of homes on the market. The biggest problem with the housing market is that we simply built too many homes, and now we don't have enough people to fill them, no matter how cheap we make them. For the five year period prior to the housing meltdown, 20 to 25 percent of all homes purchased where purchased by speculators as investments to either flip or rent. This is the reason that the home vacancy rate has increased not only in the homes that are on the market for sale, but also in the rental market.

    Tax cuts account for over 40% of this bill. Increasing our debt will only lead to higher taxes long term, and as with the Bush stimulus checks, putting a little extra money into people's hands didn't do much then, and it won't do much now. The only worthwhile expenditures in this bill are for infrastructure spending, and they only put $46 billion into that part of the bill. They should scrap the entire thing and put $460 billion into infrastructure spending. It would cost half of what this debacle will cost us and it would actually create jobs and spur economic growth.

    To understand how effective this bill is, just listen to Obama. It's very interesting how he says this bill will create or save three to four million jobs. If we add new jobs to the economy, old jobs will be saved through greater economic activity and spending will increase in all sectors. Saving existing jobs without creating new jobs will only lead to the eventual further downturn and increase in loss of jobs. It is very rare that an economy remains completely stagnant. Either it is growing or shrinking. Keeping it stagnant and only propped up through government intervention will only lead to a bigger downturn further on down the line.

    As I see it, this bill, as it stands now, is going to do nothing more than add to our problems.
     
  3. driveby
    Offline

    driveby Gold Member

    Joined:
    Sep 6, 2008
    Messages:
    8,836
    Thanks Received:
    2,305
    Trophy Points:
    183
    Ratings:
    +2,325
    One of the few good thing in the bill, they turn around a fuck it up ......:clap2:
     
  4. WillowTree
    Online

    WillowTree Diamond Member

    Joined:
    Sep 15, 2008
    Messages:
    68,172
    Thanks Received:
    10,169
    Trophy Points:
    2,030
    Ratings:
    +14,738


    well of course they are in charge and it was a Republican proposal..:eusa_whistle:
     
  5. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,618
    Every dollar that goes into the hand of the AMERICAN PEOPLE is stimulating our economy.

    Of course, we can all argue which might be the best investment, but arguing that money going to head start isn't going to help is based on what, exactly?

    Will the people who get money from that NOT SPEND it?

    In fact I think those people are much more likely to get that money back into circulation than the billionaires we've given nearly a trillion bucks to, so far.

    Why?

    Because they NEED that money to live, that's why. The billionaires need it to make their capitalization rates of their bankrupted banks look not so lame as they TRULY are.
     
    Last edited: Feb 12, 2009

Share This Page