FINANCIAL DESK - RNHunter

Why Stimulus 2 is a Horrible Idea

The problem some will say is a subtle one.  However, a country based on freedom and on capitalism and free trade cannot have a government over a certain size.   Consider for a second the simple question of:  “Does it work when a government creates jobs?”   The answer is “no”.  The reason is in the math.  If the government pays someone $50,000 a year and gets back $10,000 a year in taxes, where does the other $40,000 come from?  The answer WAS that it used to come from the private sector, something we now call hated capitalism.  But since we now hate capitalism says Obama and IRS income is down 20% (my estimate from US financial sources US Dept of Commerce) now much of the pay comes from loans from Americans and China and Japan and also from printing money.

Stimulus 1 did not work for the reason stated above.  From what I saw, Obama talked about the poor teachers, the poor policemen and the poor union workers.  Most of the $1 trillion Obama stimulus went to government cities, states, agencies, and government workers and other union workers.  Now if you look at the first paragraph, what happens when you increase the size of government workers but damage the size of the private sector?  Clearly you increase deficit spending and the US gets worse.  That is what happened after Stimulus 1 from Obama.  There should have been no surprise on that.

Now I admit I have not read Stimulus 2, but from the Obama speeches again Obama is talking about the poor teachers and the poor policemen and the poor union workers.  So that will be his main drive on Stimulus 2 – while increasing taxes on the private sector.  If Stimulus 1 did not work, of course doing the same thing again but expecting a different result (one definition of insanity) will not work either.

Now I can see that this is the time that many will stone me and say that I hate teachers.  No.  And by the way my fine nephew is a policeman.  But the problem here is the game playing.  Much of the money that goes into government never goes to teachers, policemen, firemen and the like.  Many goes to huge bureaucratic agencies that make thousands of laws for us each year.  But it seems when politicians cut back, they want it to hurt the most – teachers and police, military and fire – to teach us a lesson to not mess with them.  But either way, if the country is hurting, what is the best way to fix it?  Well, from what I see, the money maker is the private sector that Obama hates.  If we get the private sector going, by my numbers, which I get from the Dept. of Commerce, we can immediately add about $ 1 trillion to US income.  That pays for a lot of teachers.  But killing capitalism and killing money coming in and giving it to a select few – that can never work.  And a bright person would see that it did not work in the USSR, nor Europe nor China nor Cuba.

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