Every generation needs a new revolution.

- Thomas Jefferson

Where's Your Check IS Communism

The government has taken their biggest step toward communism: all families who have paid into the system, including millions who have not, are going to get a check from the government. Think about the brilliance in this plan; you are encouraged, under duress, to pay the government, which spends the money foolishly. The economy starts to slow down, and they decide that part of the problem is they have taken too much of your money so they want to send some back in the hopes you will spend it on things other than paying down your debt.

Huh? This is efficient? Yes, government efficiency.

They could cut taxes, which would ensure that the citizens of this great country can spend more of their hard earned dollars, or they can take your money, send it back to you and ask you to remember their generosity. This is absurd.

Another way of looking at the"stimulus" package:
Stimulus funded with newly created money is especially harmful. Most obviously, the inflation it causes prompts investors to flee the dollar. But because inflation can take time to show up, injecting new money into the economy can create a temporary sense that consumers and investors are wealthier than they really are. Such a false sense dangerously delays the necessary pruning of unfruitful investments. A bad economy is prolonged.

"It's only when the tide goes out that you learn who's been swimming naked." That saying, credited to Warren Buffett, points to the important if painful role that recessions play: moving money from bad investments to sound ones. Delaying this adjustment with the hallucinogen of easy money does no one any favors over the long-run.
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posted at 19:42:33 on 01/24/08 by clearpolitics - Category: Economics - [Permalink]

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Comments

Monica wrote:

I love what Senator Reid said:

"Democratic negotiators were able to secure tax relief for millions of Americans who would have been completely left out of the president's proposal."

Because they don't pay taxes, Harry!
01/24/08 19:53:14

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