Stimulus Guts Welfare Reform, Is Deceptive

by Hans Bader on February 12, 2009 · 7 comments

in Bailout Watch, Economy, Politics as Usual, Stimulus to Nowhere

The stimulus package will gut welfare reform even more than previously feared. That’s the conclusion of Mickey Kaus, a moderate Democrat who now appears to regret voting for Obama. The stimulus package will reward states that promote welfare dependency, even more than federal subsidies did before the 1996 welfare reform law, and reduce economic growth.

Clayton Cramer notes that the stimulus package is being sold to the public under the false pretense that without it, we will go into another Great Depression, even though Congressional leaders know the economy will begin recovering soon even without any stimulus. He aptly compares the politics of the stimulus package to tribal leaders slaughtering cattle in order to make the sun rise, and then taking credit for the sun rising.

The Congressional Budget Office has admitted that within ten years, the economy will be smaller, not larger, because of the stimulus package, which will weigh down the economy under an enormous debt burden.

Many of the new, supposedly-temporary spending programs in the stimulus may wind up being made permanent, which could result in its true cost being above $3 trillion. Few rank-and-file members of Congress have actually read the 1,434-page stimulus bill, so it may be full of nasty surprises and hidden pork that we learn about only after it is signed into law.

Today, the Washington Examiner disclosed that the stimulus bill may end up funding the radical group ACORN. ACORN helped bring on the mortgage crisis by promoting “liar loans” and other high-risk loans to people with bad credit. It has a long history of financial fraud and vote fraud.

Steve J. February 12, 2009 at 5:15 pm

the radical group ACORN.

ACORN isn't a radical group but those who desxcribe it so certainly are.

Cori February 13, 2009 at 5:12 am

they're not radical, that's for sure. they're just corrupt.

Kimbo February 18, 2009 at 2:47 am

Bailout 2008, a poem by David Jeffrey

Like a bloodied warrior,

laying broken and torn.

Like a dying soldier, hopeless and forlorn.

But the blood, it be green,

the color of money.

And the soldier is an economy,

and it is anything but funny.

Broken are it's people and shattered are their dreams.

Thanks to the ultra rich and their full proof schemes.

It is a tragedy with more pain to come.

Finance will be Hell, and their wills will be done.

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