Skip to comments.The Economic ‘Stimulus’ (Thomas Sowell)
Posted on 01/05/2009 6:05:01 PM PST by jazusamo
Two centuries ago, when there were plans to create a huge fund of money to pay off Britain's national debt, the great classical economist David Ricardo objected on grounds that no matter what the money was said to be for politicians could spend it for whatever they wanted.
Two centuries later, we have not yet caught up to that plain reality, even though the $700 billion that was supposed to be used to rescue financial institutions has already begun to be spent on other things.
Regardless of what President Bush or Secretary of the Treasury Paulson may have had in mind when they promoted this huge bailout package, with all due respect to these gentlemen what they had in mind will not matter in the slightest after January 20th.
All that money is just a gift to the Democrats to spend in whatever ways will advance the interests of their constituents and of the Democratic Party.
It was not just a gift of money huge though that is it is also a gift of exemption from Republican criticism, even for the bailout of General Motors, which President Bush began, even when Congress refused to give GM the money without preconditions. It is a political get-out-of-jail-free card that can cover whatever disasters the Democrats create on their own in the years ahead.
(Excerpt) Read more at jewishworldreview.com ...
Dead frog? Yup. It’s been boiled.
And it looks like the 700 Bil will do about as much good.
I imagine a large portion of the stimulus plan money will go into expert opinions and lawsuits regarding repairing the potholes.
Sigh. Wish I could disagree. And in what should be a caricature of themselves (but sadly is not), they're already talking about $1.3 trillion-with-a-T grab. This has to be the greatest transfer of wealth in history.
Yeah, and Batman would be his Justice Dept. Secretary!
What they had in mind? They clearly had nothing in mind. Clearly Paulson and Bush were lying. They didn't buy out even one "troubled asset" with this TARP money, unless you consider a "troubled asset" to be a bank or labor union. They are just making this up as they go along, and were willing to say whatever they could to get a pile of money at the start of all of this to make it happen.
The inevitable effect will be Jeemy redux. We try for you Argentina!
Thanks for the ping of truth jaz.
Too much to say to bother. Dr. Sowell is correct as usual.
It DOES look like a bailout intended for the upcoming Administration to take credit for. Or is it a rope-a-dope? FDR and Ike enabled infrastructure programs that actually did help the country. This bind-less “gift” is more like handing the Democrats a Trojan Horse they can’t help but squander.
This would work if the Republicans had someone as canny as Attwater still minding strategy. Now there’s no one but wussies and outright betrayers. If this weren’t true the Republicans would have accomplished something (anything!) when they had total control for two years.
What’s that? A few good Supreme Court appointments? Zero may have three to choose. The Pubs dropped the ball by playing footsie. We need a third party to disrupt a status quo that’s contaminated our government.
And I get sick all over again every time I remember that he's NOT.
Excellent and refreshing contrast to that no talent @$$ clown Paul Krugman’s column.
I have done some reading about the Depression and FDR (for example, John T. Flynn’s The Roosevelt Myth) and my understanding is that FDR’s government spending retarded the recovery, exacerbated unemployment and economic malaise, and crowded out private initiatives that would have been more productive. Certain individuals may have benefited from the government spending, but the lost opportunities were unseen, and certainly there was no improvement in the economic picture until the postwar boom.
This is like watching an alcoholic destroy himself.
Every stupid decision you see him make is one step closer to him hitting bottom and get on the road to recovery... or one step closer to his death.
Sowell suggests that the bailouts are a mistake because the democrats will grab the money and twist it for their own good. Then they’ll blame the republicans for their disasters. For once, I disagree with him. They’ll do that anyway.
Can't transfer something that previously didn't exist.
Truer words have never been spoken! (by the way, are you Dr.Sowell, or a relative? :) )
Just a big fan. I won't say "disciple" because that would be blasphemous...
I AM going to design my homeschooling economics courses around his material.
greatest THEFT of wealth
Do you mean, for example, "you can't hold title to a mirage?"
lol... Yeah, that'll work