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The Coming Stimulus Sleight of Hand PDF  | Print |  E-mail
Written by Art Thompson   
Tuesday, 16 December 2008 16:14

House Democrats under Nancy Pelosi are promising to put Congress into fast forward in order to put a stimulus package worth hundreds of billions of dollars on Barack Obama’s desk the moment he takes office.

Nancy PelosiThe Democrats are hoping to be able to see the measure signed into law by Obama as early as January 20, and they have been working with the incoming administration to surmount any hurdles that might stand in the way in the meantime.

"We have been communicating with the president-elect and his financial advisers to see where their comfort level is" on the size of a stimulus bill, Pelosi said, according to Reuters. Most expect the tab for the bill to run as much as $600 billion.

Lost in the reporting, however, is the inconvenient fact that there can be no such thing as a stimulus package. If I ask you for five thousand dollars and immediately turn around and give you back four, it may stimulate anger but not much else. For it will not do a thing for your ability to use what was originally five thousand and has now shrunk to four thousand dollars.

The stimulus is for me in the form of one thousand dollars.

What if I told you that upon returning the four, you now had to spend it in a manner that I designated was best for you? For instance, you did not want to buy a car, for whatever reason, but now I force you to pay the auto company with your returned money. I do not think you would be too happy about that.

Or, what would you think if I did this after forcing you to put money into your local failed bank where you had already lost money? After all, what is a little more money if it means that your bank will stay open, for the good of all?

This may seem a little silly and over simplistic, but in essence it is exactly what we are seeing the government put together as a so-called stimulus package.

You cannot save an economy by first taking from the economy and then returning the money to failed entities. You do not save anything; what you are doing is building a controlled economy. This does not mean that it is a robust and safe economy, and it is certainly not a free economy.

You cannot fill a water well by first taking water from the well and then putting it back. Water is always lost in the process.

The same applies to the taxes taken from the people and then returned to the economy. How can I help you by taking from you and then returning a portion to you? There is always a portion kept for government operations that do nothing for the economy.

We all understand this, yet the pundits and politicians tell us that a bloated government will save the day if we just take enough taxes from one sector and apply it to another failed sector.

Returning to the water well, we can only get more water if we expand the well or dig new ones. If government gets in the way of individual, private initiative with massive regulations on planning, building the shovels, forcing non-sensible environmental regulations in the process, demanding union labor, sending in OSHA to watch, then redistributing the water to those who didn’t help dig the well, taxing the entire process ... well, then you get an idea of why there is a shortage of water.

The water industry then goes to Arabia to buy water which is hauled here in huge tankers. We have the water but the money for foreign water goes overseas and is lost to the economy.

And, to top it off, the government blames everyone else for the shortfall in domestic water and the tremendous outflow of capital to foreign nations that is hurting the economy they profess to want to help.

But do not worry, the government will stimulate the water shortage by taxing water even more.

Government cannot stimulate the economy by taxing the economy, or regulating and taxing water. Of course it must be obvious that I am talking about domestic oil exploration, pumping, and refining.

You cannot grow the economy by adding more taxes, either through direct taxation or the hidden method so loved by despots: inflation of the money supply.

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Eagle4life0608 said:

5361
Government Never Ceases to Amaze Me...
This does not suprise me in the least bit at all.
It's what government is known for sticking it's ugly face into other people's buisness. The truth of the matter is we can talk about these things all day and shake our fist at the man in this case government.
But talking about these things in the long run doesn't help if no one takes action. We need action.

We are all sinful and living in a sinful world and those who know this need to shake the fist at themselves, since they are the man and live according to God's word, because change has to start with us before we can change the things around us, like the way our fallen government is running it's self.

We need to change our selves, live according to the word of God and be stedfast in our resolve to live a righteous life and we must pray. It's so simple, yet so hard to change our selves, but it's what needs to be done before we can change any thign else in our world around us.





 
December 16, 2008
Votes: +0

Peter Steele said:

0
RE: The Democrats' Dilemma
Family friend Philip M. Crane knew Dad back in 1963 before he was fired from General Electric by LBJ Democrats and Dad supplied him and Goldwater vital ammunition and they were right as Dad was. He did the book "The Democrats' Dilemma" just in time for Goldwater to be noticed.
 
December 16, 2008
Votes: +0

archtoplee said:

236
The' water well' analogy
This would make a perfect play to demonstrate the foolishness of "stimulating the economy" via a bailout scheme and the insanity of government regulation of the economy. The stage play will be entitled: "Monopoly Money and How the Government Stole the Free Market."
 
December 16, 2008
Votes: +0

Pat Henry said:

0
Hyperinflation
Well, the hyperinflation has now surely begun. Interestingly, it corresponds with the socialization of the "financial sector" (and every other industry crying for "bailout"). Ironically, the Fed is beginning to own the very things that will quickly lose their former value. Poetic.

But what is the individual to do? Better buy tangibles that will hold value no matter at what "dollar" price they will later be valued. That golden opportunity is NOW.
 
December 17, 2008
Votes: +2

RichardR369 said:

112
Neocon Americans
It's amazing how people still think we're 'Americans'.
 
December 17, 2008
Votes: +0

Cadence said:

5919
...
Everyone - Read "None Dare Call It Conspiracy" by Gary Allen, published in 1971 and you will understand how and why our government acts the way it does. They answer to a higher authority and it isn't God. Please Lord I pray enough people wake up and realize what is happening so that we can change our government into a body that actually obeys the Constitution. May Your Will be Done.
 
January 08, 2009
Votes: +0

Payday Loan said:

0
...
President-elect Barack Obama’s stimulus plan is starting to come out. He calls it the “American Recovery and Reinvestment Plan.” He says he is going to provide assistance for middle and low-income Americans, who are the ones who typically take out payday loans, in the form of tax cuts and invest in infrastructure such as bridges, roads and water mains. He also plans to help states with faltering revenues. Maybe with a little luck his plan will turn the economy around, and Americans will only need payday loans for emergencies, not just to make ends meet.
 
January 16, 2009 | url
Votes: +0

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