What Economic Stimulization?????

Today President Elect Barack Obama touted his new economic stimulus package to the nation on television. He said that without this stimulus package there could be dire consequences to our economy, as if our economy is not facing dire consequences already.

The proposed 800 billion dollar stimulus plan is his answer to a failing economy. This plan includes everything from improvements to the infrastructure, to tax cuts for the people. He says the plan will put more people to work on the infrastructure side of the plan, while the tax cuts will put much needed cash into individual’s pockets to spend, which in turn will give the economy a boost, there by getting us out of a recession.

According to the latest numbers though the last economic stimulus package didn’t do what it was intended to do, which is stimulate the economy. Tax payers got their stimulus checks and instead of going out and buying flat screen TV’s and other luxury retail items they put the money in their savings accounts.

Add to that the fact that our bailouts of Wall Street, financial institutions, the auto industry, and everyone’s favorite insurance company AIG, which by the way still hasn’t worked and all we have succeeded in doing is adding another 1.5 trillion dollars to the national debt. That now puts our total national debt at about 10 trillion dollars approximately.

Obama is not only in a bad position having to come into his Presidency telling everybody that it is going to get worse before it gets better, but he is going to add another 800 billion dollars in debt in the first year. He says all of this while laying the blame at President Bush’s doorstep for the debt incurred from the last round of bailouts and stimulus, how ludicrous is that? These bailouts and stimulus plans were exactly what Nancy Pelosi and Harry Reid wanted.

The reason we had to bailout those businesses anyway was because there was not enough oversight from the senators and congressmen responsible for keeping an eye on those banks and mortgage companies. Instead of enforcing the regulations these politicians encouraged these companies to do bad business. Most notable are Senator Chris Dodd and Congressman Barney Frank.

By the way 800 billion dollars may not be a correct figure either. Economists predict that Obama’s stimulus package may actually be closer to 1.5 trillion dollars. They also say that he may have to go to the well for more money again to. How much debt are the taxpayers supposed to be responsible for? The US government cannot continue borrowing money to fix this problem, because sooner or later the countries who loan us the money will stop over worries that we cannot afford to pay it back, even if the fed raises interest rates as an incentive for them to loan us the money.

The only way for us to get out of this recession is for the government to get the housing market straightened out. Without the housing market turning around our economy will not right itself. We should also let the companies that cannot compete in the market place to go into bankruptcy and reorganize or dissolve; the taxpayer should not become business partners in bad businesses. The last thing they should do is to raise taxes. You do not ever raise taxes on anyone in a recession, especially on those who create jobs.

All I can say to you is to just think about this, look at the numbers, and do a little research and you will see I’m right. After all how can I and a few hundred world renowned economists be wrong. Not only is it simple math but simple politics to.

That is all I have to say on this subject for today. Have a good day and I will be back again soon, CIAO4NOW!!!!!