Stimulus?

We are assured by Barack Obama that “Because of what” they did, our economy will rebound.

We are fed the news that Barack Obama will present a budget plan that will “slash” the Federal deficit despite a massive “stimulus” plan that increased government spending by a significant amount.

We are promised that the great, wise leaders in Washington will now unilaterally declare carbon dioxide a dangerous pollutant without benefit of Congressional action on that.

The last two items appear to effectively kill the first one.

To slash the deficit you must increase government revenues or slash the Federal spending. Given the nature of what Congress has just done in passing the “stimulus” we can effectively rule out cutting spending. That leaves raising revenues via tax increases. The choices are to raise taxes on individuals or on corporations.

The “stimulus” plan includes a provision for “buy American” that will likely trigger a trade war. That is most likely to damage American corporations and decrease tax revenues from that source. Leaving individuals to pay the taxes.

The regulation of carbon will, by any measure, greatly increase the cost of energy for individuals. Taxpayers are about to get hit with “sticker shock” over the cost of their energy consumption. Individuals will get hit with rising energy prices, rising taxes and a falling economy – all at once.

Stimulus?

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3 Responses to Stimulus?

  1. checkers says:

    There are only two very opposite possibilities here.
    Either Obama really is this stupid, in which case we can just sit back and watch the train wreck for 2 years till mid-terms..
    Or, this is a skilled effort to create another bigger “crisis” which the government (now manipulated by Obama) can “exploit” for purposes of shoving more Fascist like controls down our throats all in the name of “saving us”..
    I am not sure which really, I just stare daily at the headlines in disbelief of the drivel that passes for intelligence in many of our elected leaders.

  2. Bob Sykes says:

    You forgot his mortgage plan. That plan will force banks to reduce interest payments on some (who knows which) existing loans. A rational banker will either leave the home mortgage market entirely (one large bank has announced it will do so) or increase mortgage interest rates on new loans to cover the uncertainties on existing ones. This can only reduce the total amount of new mortgage money and further collapse housing prices.

  3. martian says:

    You don’t understand. He’s the Chosen One, the Obamessiah! All he has to do is snap his fingers and miracles will occur. Everything will get better because he says it will. You just have to have faith in His Obamaness!

    Personally, I think the effect his policies will have on the economy will be obaminable!

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