So-called “stimulus packages” don’t revive the economy, but that hasn’t stopped President-elect Obama from pushing a budget-busting $850 billion stimulus package. Japan tried a similar approach in the 1990s, trying to revive its economy after a real estate bubble imploded, by spending billions on new roads, airports, and bridges-to-nowhere. That period has been called the “Lost Decade,” since all the spending just led to economic stagnation and decay.
The Obama campaign claims that virtually no economists oppose his stimulus plan, but I have economics and law degrees (including a law degree from Obama’s alma mater), and his plan seems like a fiscal disaster to me. George Mason University economist Tyler Cowen, who opposes the stimulus boondoggle, notes that contrary to what Obama’s staff are saying, there is in fact no academic consensus in favor of so-called “stimulus plans.”
During the Great Depression, the government tried to pump up the economy by borrowing money to hire unemployed people to do make-work jobs to “stimulate” the economy, but the economy didn’t experience a sustained revival until World War II came along (leading to the slowest recovery in generations), and, meanwhile, the national debt exploded.
It did get Franklin Roosevelt reelected, though, by creating the appearance of decisive action, and providing him with pork and patronage to effectively buy votes in crucial swing states. Like the politician who takes credit for the sun rising, Roosevelt took credit for the inevitable if slow and halting recovery that occurred after markets hit rock bottom, while cleverly demonizing the private sector businesses that provided most of the nation’s jobs as “economic royalists.”
In 1993, despite rising unemployment (unemployment was higher in 1993 than it is today), Senate Republicans filibustered Bill Clinton’s “stimulus package” to death, forcing him back towards the political center. The result was years of solid economic growth and falling unemployment rates. Unfortunately, nobody seems to remember that today. And unlike then, the GOP now may not have enough Senate seats to filibuster a stimulus package, no matter how costly and wasteful it may be.
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A NEW WAY1. Take $100 billion and divide it into 10 million $10,000 checks.2. Distribute AT RANDOM 1 million checks using a lottery system that makes every man, woman and child eligible to receive a check.3. wait a week and repeat wait 2 weeks and distribute 2 million checks4. wait a month and distribute another 2 million checks5. Wait a month and distribute another 2 million checks6. wait a month and distribute the remaining 3 million checksthe basic rules would beonce you receive a check you cannot win againit must be purely randomthere should not be any exclusions, everyone in the USA should be eligiblea family can win twiceThe idea is to create a fun exciting way to distribute the money. Creating excitement and “lucky†people and a party atmosphere. The media would be encouraged to highlight generosity and providence saving an individuals or family. The most important aspect of this stimulus would be to change the psychology, media focus and political discourse. This change would change the economy and the marketWhat would this do:The money would be spent in the economy at a much higher rate than with any other form of handout. It would change the evening news and the morning papers. It would change the talk shows. THE MARKET IS NOT THE MONEY BUT THE FEELINGS AND FEARS OF THE BODY POLITIC.THE MONEY WOULD STIMULATE THE MARKET PLACE AND THE MARKET PLACE WOULD SAVE THE BIG COMPANIES. Not the other way around.The big companies that are poorly managed or that do not serve the market would fail BUT THE ECONOMY WOULD START TO HUM.
Everyone is thinking and will do anything just to save money. President-elect Barack Obama's proposed stimulus package would provide businesses with billions of dollars in refunds on taxes they paid several years ago. The Obama speech is sparking many talks about the new stimulus package and the payday loan reform going on in New Hampshire. Barack Obama gave his economic address today, and a few Republicans had something to say about the plan. Fortunately, everyone agrees that a stimulus package is what the American people need, and they need it fast. Too many people need a payday loan nowadays just to get by. Not surprisingly, though, House Minority Leader John Boehner and Senate Minority Leader Mitch McConnell agreed that the plan was too costly. Boehner declares that "we can't buy prosperity with more spending,'' and McConnell suggested that money given to states should be loans instead of grants. To read more about the new stimulus plan and what some thoughts are on the American Recovery and Reinvestment Plan, read this article at your <a title="READ Republicans Respond to Obama’s Economic Address | Article by Your Payday Loan Source" rev="vote-for" href="http://personalmoneystore.com/moneyblog/2009/01/08/republicans-respond-to-obamas-economic-address-article-by-your-payday-loan-source/" rel="nofollow">payday loan source.
Several stimulus plans have been imposed yet, economy is under the same position, and we are still under recession. I know Obama is exerting too much effort to make his being proposed stimulus plan effectual. And hopefully, Barack Obama’s economic stimulus plan will bring the American country out of recession and restore confidence into the heart of its people. Of course, like I stated earlier, accomplishing this goal will need the full support of the entire Obama administration. The one who belongs to his administration is Nancy Killefer. Killefer has been chosen to be the Chief Performance Officer for President-elect Barack Obama’s Executive team. Her duty will be to eliminate unproductive government programs and ensure that taxpayer money does not go to waste. A Chief Performance Executive makes sure that the services or products that a company offers performs up to standards, like payday loans, and the Obama administration will need all the help it can get. In these dire times in the economy, we cannot afford to waste any more money on unnecessary dealings. Click <a title="READ Executive Payday Loans for Nancy Killefer" rev="vote-for" href="http://personalmoneystore.com/moneyblog/2009/01/07/executive-payday-loans-for-nancy-killefer/" rel="nofollow">payday loans to learn more about Nancy Killefer and what her office will be about.
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