The Party Never Ends
It’s a great song by Robert Earl Keen … the road goes on forever and the party never ends. That in a nutshell is the bailout fever gripping DC and summed up well by NJ Congressman Scott Garrett. He tells Fox News why the crummy $500 check will do little to solve the big problem facing the US during this recession … job creation. It won’t get you a job.
Plus he nails it when he reminds the American people … your so called “tax cut”, which is not a tax cut but in fact a transfer payment, is a one shot deal …. but the politicians spending your money and now your grandchildren’s money too goes on FOR – EV – AH!
The economy is in trouble. But unless I am missing something (and I could be) we have been here before. Recessions are painful but they cleanse an economy of excess and we always emerge stronger. If its jobs we want then we need to stimulate the private sector, not the public sector and we can do that simply by cutting corporate taxes and personal income taxes.
Both would improve personal and business balance sheets, create a wealth effect, boost confidence and encourage new spending and investment. Government checks can’t do that and government jobs (because the paychecks are circular) do not increase a nation’s wealth. The government has no source of income other than its workers.
If the government workers are the main source of income, both are doomed to stagnation (reference Soviet Union, Eastern Block, Cuba, North Korea, etc).
Be careful what you wish for.
This is a on two punch, not just because the economy isn't getting cleansed, but they are DESTROYING WEALTH. Ever new dollar that get created out of thin air serves only to destroy the current wealth.