Skip to comments.Help stop "America's INFLATION stimulus bill"
Posted on 02/10/2009 10:07:01 AM PST by XR7
The so-called stimulus bill appears to be on the verge of passage following a compromise crafted by Republican Senators Specter and Collins and Democratic Senator Nelson. It demonstrates a stunning ignorance of how business works and how jobs are created. For example, in its over 1500 pages, there is not one single mention of increasing profits in American businesses, yet any business owner knows that sustained profits are the only way that businesses can expand and create new jobs. Without a clear focus on increasing profits, the long-term result of a huge increase in government spending can only be one thing: staggering inflation.
In addition to the economic issues, this massive inflation stimulus also raises three major moral hazards:
The bill as it stands is entirely government-centric. It assumes that government is the best or only financial actor capable of addressing the politically-motivated overextension of credit crisis and a housing market breakdown. Absent are incentives for the private sector to inject new capital into the economy.
This so-called stimulus bill contains more pork than a pig farm. President Obama has badly bobbled his first real legislative leadership opportunity and abdicated to Nancy Pelosi and Harry Reid. Obama originally proposed a massive infrastructure investment program. He should have stuck to it.
Providing infrastructure is a core function of government. It enjoys support from conservatives and liberals alike. Conservatives base their support on time-tested economic principles initially set forth by Adam Smith, the founding father of free market economics. He argued that governments proper role was to provide a permanent military for national defense, a police and court system to control crime and administer justice and a public works system to facilitate the flow of commerce along roads, bridges, and canals. Contemporary conservative legislators who may be budget hawks on most government spending are typically supportive of spending on infrastructure. Our roads, bridges and railways are in a deplorable state of disrepair and deterioration. Entirely new types of infrastructure, such as high-speed fiber and wireless data networks, should be developed to aid twenty-first century commerce and economic development in the same way that paved roads did two centuries ago or air transport did in the last century.
If President Obama had stuck to his original promise of enacting a stimulus plan focusing on job-creating infrastructure projects that were shovel-ready and just waiting for funding, he likely would have found many willing Republican allies. The result could have been a precedent-setting example of genuine bipartisanship. Instead, by abdicating his leadership role in setting the national agenda to Nancy Pelosi and Harry Reid, he will probably sign a bill that would be best described as Americas Inflation Stimulus, because it will be inflation, rather than job growth and infrastructure investment, that is most stimulated by it. How many months will it be before we see inflation skyrocket from its current level of around 4% to 12% or more? The last time we saw an inflation rate that high was in 1980, and it was a major contributor to President Jimmy Carters defeat by Ronald Reagan.
The proposed package of pork is the largest spending bill in American history. Expressed in current dollars, it is roughly double the size of the entire New Deal, much of which really was infrastructure spending. It is likely to garner no more than a handful of Republican votes, largely because no Republican input was sought in the House, and only two Republican deal-making Senators were involved in reaching the Senate compromise.
For the new President, this is a tragic waste of an historic leadership opportunity. For the rest of us, it will result in the greatest transfer of debt to a succeeding generation in the history of the world. This is not the kind of change that Obama promised.
We invite you to join us in sending a clear message to your Senators that you simply will not tolerate their voting in favor of this bill.
Please click this link to go to our special online petition, which we will send to both of your states United States Senators before the final vote:
What can we do?
It looks like our own leaders are selling us down the river to socialism/serfdom - the end of our free republic.
Sign the petition.
Call your senators/congressmen.
(BTW: there are some great videos on that site too.)
Or is it?
Yes they did.
Step 1 - Think French Revolution & storm every sell-out America Senators office, home, etc. Step 2 - I'm banned if I mention it. (All of your E-Mails, letters, etc sure scared these scumbags but it probably made you feel good because feeling is more important than results - the results that we have been waiting on for 2 decades)