Obama Stimulus Package: an urgent need to do nothing
The more I hear about the Obama stimulus package, the less I like it. Yet it is the most “urgent” piece of legislation that his Administration is working on passing, immediately. Just as the $800 billion for the credit crisis had to be immediate.
And just as with the mortgage/credit bailout quick action without forethought provides for mistakes, waste and a few political amendments that no one will notice until after the fact.
As of right now, the Obama stimulus package is being referred to by President Obama as
“All we can do, those of us in Washington, is help create a favorable climate in which workers can prosper, businesses can thrive, and our economy can grow," Obama said. "And that's exactly what I intend to achieve - soon.”
Now think about this for a moment. The stimulus package is intended to avert a depression and reverse the recessionary trend currently happening. This is important to remember as I continue.
25% of the Obama stimulus package will not take effect until after 2 years have passed. That’s not my opinion, that’s from the White House itself. Thus the package is not immediate.
The package includes several hundred billion dollars for environmental studies. That also takes an extended amount of time, and provides nothing to the economy. But it does make the global warming crowd feel all warm and fuzzy.
The package requires that:
“Much of the spending would be for items such as health care, jobless benefits, food stamps and other such programs.”
Jobless benefits do not create jobs, and therefore does not help the economy. Food stamps do not create jobs and therefore does not help the economy. Healthcare could create jobs, except that the money allocated for that is to supplement the coverage and cost for those that have lost a job. Again it does not create anything.
And a huge portion of the stimulus package is targeted to give the public money. But that’s not exactly true. First you have to make less than $75,000 (or $150,000 for those filing joint). Second you must receive a paycheck. Third you will receive a discount on the federal taxes you pay – up to the first $8150 of your annual salary.
That last one is important. It means that if you get paid once a month (as an example), and in month 2 or 3 your income exceeds $8150 you will no longer get the benefit. Of course the entire benefit only amounts to about $120 a month anyway. Which should be plenty of money to go out and buy hoards of new items. Which would create new jobs.
Except that $120 a month isn’t much at all. For most major purchases, like a new TV that will work with the HD changeover, cost far more than a mere $500 (which would take 4 months to save up to and is not immediate). Add to that equation the fact that the average American has $6000 in debt, and with tens of thousands of jobs being lost so far in this month alone most are more concerned with lowering debt as opposed to buying a new shiny something to compete with the Jones’ next door.
So again this is not creating jobs.
But there is some portion of the funds that will go to small businesses. Roughly $2.7 billion dollars. Or in other words, next to nothing. And larger businesses will get money as well, if they can prove they can create jobs through Government approved calculations that have been proven to be next to impossible to qualify for.
But do not fear. The Government will be funding jobs via public works. Like in the time of FDR. Except that just like then, if nothing is being done to create private sector jobs, which the above proves it is not, when the Government stops the funding there are no jobs for people to apply for.
In essence, this is a political polispeak attempt to look good. The long term effects are negligible at best. The quiet side provisions are definitely not popular. In virtually every aspect it fails to create jobs, or spur consumer confidence. It fails at its immediate and definitive purpose, stimulus.
If this passes, Democrats in Congress and President Obama will look good. For a while. And Republicans will have yet another thing that will be blamed on them. And when the built in failure of the plan becomes apparent, Republicans will be the first people selected to blame for their disagreement.
What is needed is a stimulus plan. Not the word stimulus, not the projection of sending the public checks that will need to be paid back at some point in the future. Least of all is the need for the Government to take care of everyone as if they were children, which this package does in abundance.
I don’t want the Government to give me what it thinks I need. I want the ability to earn enough to make my own choice about what I actually need, and if I do well what I want.
All politicians should reject the Obama stimulus package. Democrats won’t. Most Republicans will. And it will get passed because there are more than enough Democrats who seek political gain over their constituents well being.
Not the definition of change most voters expected, but it is change indeed.
Labels: Democratic Congress, President Barack Obama, stimulus package
posted by M. Vass @ Wednesday, January 28, 2009
6 Comments
6 Comments:
Comment as found at worthblog.com, where I am a contributing author.
Norris Hall Says:
January 29th, 2009 at 5:38 am e
Where was conservative outrage when President Bush was pushing 600 billion dollars of spending on the Iraq war.
All of that money was borrowed.
Why are Conservatives all for borrowing money to spend on training Iraq’s police and army, rebuilding bombed out schools, restoring power and drinking water , prop up Iraqs governments and paying insurgents not to fire on US troops.
But when it comes to spending money here in America they call it wasteful.
I think we should ship the Republicans in congress to Iraq.
They seem to have far more sympathy and support for oil rich Iraqi’s than for unemployed Americans
Norris,
Thank you for your response.
Now I want to mention something immediately obvious. You never commented on what I spoke about. Is that because you cannot defend what is happening.
I notice that Democratic politicians love the act of looking backwards and pointing to things in the past they do not like, rather than addressing the issue in front of them. It’s a distraction often used in polispeak, and is an effective way to beguile the public into thinking they are doing something or helping when in fact they are doing nothing and don’t want to be blamed for it.
But that aside.
I was among many that disputed the need to go to war in Iraq. That debate ended the second the first soldier set foot in Iraq. An action that was advocated for by Secretary of State (and then Senator) Clinton and many Democrats with full access to non-public information.
Once troops set foot in Iraq, funding was not a question. It was in part the desire of Democrats, after the fact, to not fund troops that helped lead to deaths because of poor equipment and other resource failures.
The fact is that wars have unknown lengths, and only a fool assigns a timetable to such an act. Another fact is that wars are expensive. They boost economies to a degree, but ultimately they cost a lot. Complaining about that cost benefits no one.
Since America cannot colonize Iraq, which would have allowed us to recoup our cost, the only other choice is to have a new Government that is friendly towards America – thus stimulating trade with us in a beneficial manner. To gain that requires more than just propping someone in a position of power. The people of that nation need tangible assets that they did not have prior to allow us to gain a favorable trading arrangement. That means power, food, schools, clean water and so on.
And as for “But when it comes to spending money here in America they call it wasteful.”
Let’s get the facts straight. Republicans are not against a stimulus package. But having learned from the Bush Administration that just throwing money at the public will not work, effectively using money is the goal.
But prove me wrong. Please do explain how $500 million dollars to be spent on studying ‘climate change’ will help any American keep their job next week. Please do explain to me how spending $150 million on honey bees will create a job to replace one lost this week. Please explain to me how billions for research of alternative energy sources (that don’t exist today) will put food on a table, or a roof over the head of a single family during the next 2 years, or even 5.
Explain to me how the Democratic stimulus package spending 25% of the $819 billion proposed after 2 years pass is immediate and job creation that cannot be delayed.
I call all of that wasteful, and conter-productive. So before you ship out all the Republicans that are asking for the money Congress is borrowing to be used to create jobs, and help families now (not in a couple of years), please explain how Democrats are not just looking politically good while advancing pet projects and social agendas on our collective dime.
We the people in America need something done.And at least we now have A real president that is trying to get something done.I have been unemployed for a year and I can not find a full time job.I am a single mother going to loose my car to the bank.And later me and my daughter will be homeless if there is no unemployment extension that passes soon.I pray to God for a miracle to happen.I hope I can find a job real soon.
Carolyn,
Thank you for your response. And I must say I am sorry to hear of your difficulties. But be forewarned that it does not move me from my positions.
First I want to address something I keep hearing from many liberals and Democrats. President Bush was as real a President as any, and his actions were as justified as every President in my lifetime.
That does not mean I agree with every decision, nor that they all were correct. But to malign the office of the Presidency with biased hate, because the President did not convey the wishes of a small portion of the nation is wrong. And it is obvious that hate has been enacted against President Bush, by the media and others because he had the audacity to not agree with their views.
If President Obama were to be treated in a like manner the same groups would be outraged. We need, as a nation, to reign back this tabloid mentality and respectfully voice our disagreements. Because no President is always right, or 100% approved.
And I agree that President Obama and the Democrat-led Congress are trying to get something done. I just don’t feel that the things they are trying, and likely will force into law, are of any long or short term benefit to the nation. None of the plans expressed so far, will create the job that you require. None of the plans will create a job in the next 9 months or longer.
You mention that you lost your job. Might I ask what were you doing? Were you in the financial field? If so may I ask why you did not take the time to prepare for the impending situation, as it was apparent that some degree of difficulty was coming at least 6 months before 2008 started.
Also may I ask what type of job you have been searching for since that time? While many jobs are now scarcer, the same could not be said 9 months ago. Difficult yes, but not nearly as difficult as today. And as a friend of mine loves to say “They always hire at McDonald’s and the Post Office. And someone always needs a floor swept.” The point being that there are jobs still available, though they do pay less and are manual labor intensive.
Considering that you have a child I must ask how much of your income you saved every week – as a percentage. How much debt have you been holding while employed. I don’t mean to be personal, but since you brought up your life I wish to understand exactly how well you prepared for the unexpected, and if in fact it was unforeseeable.
Because what I take from your comment is that you want the Government to take care of you. That may sound harsh, but that does not change what you are saying.
I have been homeless 2x in my life. I have lost businesses. I have worked hard for years to remove all my debt. I spent the early part of my life working while getting an education to provide me the means to improve the standard of living I can enjoy, when the opportunity is available. I have swept floors, worked retail, done manual labor, often all at the same time and been a white collar worker. And still I am far from what most (except President Obama and Democrats apparently) would call rich. Through all of this I have never needed a single dollar from the Government, and I hope I never will.
But that is because I have made plans, lived on a budget, and well within my means. I have given myself the opportunity to succeed when the chance arose, and to survive when I could not. And I cannot say that all of that time was pleasant.
Yet today, far too many people are living beyond their means. They are without budgets or plans. And that is not the fault of anyone but themselves. Still they seek out the Government to secure a life for them, which means my efforts must do this. Because it is my taxes that help to provide for their failures.
I don’t mind helping people in need. That’s why there are shelters and programs. And they are temporary, as they should be. Because it is the responsibility of the individual to succeed, not the Government.
More specifically, the Obama plans will not feed your child beyond bare sustenance. It will not employ you. It will not save your home, ultimately. You must do these things. So your time is better spent doing something than waiting for President Obama and Democrats or Government to take care of you.
Some will fault me for my harsh nature. I accept that. But it does not make the plans of President Obama and the Democrat-led Congress any better or feasible. It does not change the facts of what is happening today, nor the events that have occurred since the 1990’s that have led to this current economic peril.
I still recommend that the Obama stimulus plan is voted against. I still say it will lead to greater problems than the welfare it purports to provide will help. I still believe that teaching people to fish far outweighs feeding them fish, even though that process can hurt.
I am sorry that you are in a difficult time in your life. But you are just one person out of over 300 million. Unless we want to see your plight enjoined by tens of millions or more, the Obama economic outlook must change.
just so you are aware (and you may already be), honey bees are very endangered at the moment. Their numbers are dropping quickly. They produce 1/3 of our food from pollinating. Therefore, it may be well worth it to put some money into them.
Also, we can be critical of what the stimulus plan will actually accomplish, but how productive is it? My advice is, try to understand what you can, and then move forward. If you have ideas of how it can be better, get in contact with a representative or start your own initiative.
Thanks!
Anonymous,
Yes I am aware of the impact of bees on the growth of plants and food. Given that, and the need to investigate what is happening, this is not a stimulus act. It does not improve our economy.
Let’s be clear. $787 billion were just spent to stimulate the economy and pull America out of the current recession we are in. President Obama and the Democrat-led Congress have stated repeatedly that without this action absolute economic doom would befall this nation in a manner worse than the Great Depression. We had to have the stimulus package.
So how does a study on honey bees costing $100 million dollars create jobs, or keep them? What portion of America will continue to be employed by studying honeybees? Perhaps a few statisticians and biologists will continue to work, a handful of college Master’s students and PHD candidates. But the guy laid off from Circuit City gains nothing.
Thus this is a spending item. Questionably necessary at best, but not part of anything that will prevent America from falling into a depression in the next year.
The same can be said of DOZENS of other items that our $787 billion has just been spent on. Items that might help handfuls of highly specific jobs, with rewards that may or may not be realized in the next decade. Or that are relatively useless. Like moving the Homeland Security from one building to another, at a cost of $500 million. Does that really need to be in a stimulus bill? Or the funding of removing mid-sized fish barriers in selected mid-West rivers?
I in fact question not only what is in the Stimulus package but its effectiveness. We have already seen how ineffective a bulk stimulus check is via the Bush Stimulus check of 2008. That check was larger, and a one-time payment, allowing for the purchase of big-ticket items. Instead most Americans used it to pay down on the $6000 of debt most have, or placed the money into banks to hold for worse days.
Now the Obama Stimulus will provide far less money, for fewer people (it is capped at $75,000 – the seeming new definition of rich according to Democrats) over a far greater period of time. $13 a week, for those that RECEIVE a paycheck, for a maximum of 4 months is nothing. If you are paid every 2 weeks you have an extra $26 dollars.
How might $26 dollars stimulate the economy? It may buy a bit of extra food, but then again the higher cost of food is tied to the increase of ethanol production. As a green energy source, President Obama is mandating an increase in that fuel – and thus food costs will increase further. So much for extra food.
In addition, energy costs will be higher. That is not a question but a fact.
“[White House Budget Director Peter] Orszag acknowledged that the energy proposal would increase costs for consumers…”
That’s a higher cost of home heating, gasoline, and electricity – not including the effect of increased use of corn-based ethanol.
And I can go on and on. Like the fact that green energy (wind, solar, biomass, ect) is ineffective and still theory based. The best minds in the world still consider it a decade away from becoming viable. Tens of billions are being spent on research, not implementation, under the stimulus package. Again that is a spending cost, not stimulus.
But small business, which employs some 80% of people in the nation not working for the Government, received $3 billion. That’s not 1/10th of the earmarks I found on my initial glance at the stimulus bill.
So what to do about this? Well first I implored people to be aware of what they were actually going to get in this stimulus package. I then further stated what the results from Wall Street and therefore business would be if the package was passed. And I gave people a means of contacting the Government to prevent this.
But I am not nearly as big or powerful as NBC, MSNBC, CNN and other liberal news media combined. Given their bias, and the commitment they have already made in getting President Obama elected, I am not surprised they have yet to question what has been proposed. Just as they failed to question why the Stimulus package, which was promised by President Obama to be available to the public for review for 48 hours prior to action was moved forward immediately.
And lastly, my blogs are my initiative. It is my means to spread the thoughts I have. It is my way to try to effect what is happening in Congress and the Government on many issues. Considering that I am read in over 125 countries each month, and by tens of thousands of readers, I think I do well.
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