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    Tuesday, January 27, 2009

    Stimulus will stimulate nothing

    Is there any thinking person in America who actually believes that the proposed $850B "stimulus" package is going to do much to help this economy?

    provides some snapshots of the bill, from the CBO's analysis. Whether you agree with the stuff that we're going to find in the bill (and I guarantee, we're going to find lots of egregious stuff), it is obvious that this bill isn't going to provide much of a stimulus for at least a year, if ever.

    I encourage everyone to read the CBO analysis, as its 18 page write-up is probably the easiest way to digest, in a summary, what this bill is all about. And, frankly, reading this analysis, the GOP had better come up with a way to fight this monster and keep it from happening. This bill is a waste of taxpayer's 'money, and I guarantee, it'll end up filled with pork in a vote buying effort.

    The Heritage Foundation also has some analysis of this pig, among their points:
    • This bill will cost over $10,000 for every family in America. Better to send every family a check for $10k - trust me, they will spend it better and it'll provide more stimulus than this pile of liberal doggerel.
    • The bill doubles federal spending on education. Liberals will say that either 1)we need the money to improve failing schools, or 2) the feds are doing such a good job with education, they should spend more. They'll say it with a straight face
    • A significant expansion of the Earned Income Tax Credit. I will say that if you're poor (or make below about $40,000/year, and depending on how many kids you have) the EITC is a great thing. However, it goes largely to people who don't pay any income taxes. The EITC is a massive transfer payment program.
    If we really wanted to stimulate the economy (yes, I contend that President Obama et.al. do not give a rat's ass whether the economy is stimulated, they intend to consolidate power and votes in an old-fashioned vote buying scheme - making government your mommy), we would lower corporate tax rates, nearly eliminate the capital gains tax, make the Bush tax cuts permanent, and cut government spending, including some privitization of social security (don't think markets could use a massive injection of capital right about now???).

    Of course, that won't happen with this crowd in charge.

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