Let's talk stimulus. President-elect Obama has proposed a second economic stimulus plan as an attempt to get the economy moving again. I disagree with this proposition.
Our country's economic fundamentals are not strong right now. Several banks have failed, the interest rate is unbelievably low, the Dow is down about 35% from it's high last fall, the previous economic stimulus did little to stem the tide, and our national debt is double what it was 8 years ago. Taking more money away from the future is not going to fix things.
What the plan would do is apply a band-aid to a sucking chest wound. It's not going to help. We're at a point where we can't feasibly drop much lower and still remain viable as a nation.
We are at a point where we need to pay the piper. For the sake of our nation's standing as an economic power now, and in the future. This is the cost of deficit spending - you've got to pay off the debts. When that time comes, spending and economic growth necessarily will suffer. It's not the popular thing to do to tell the country we have to honor our financial obligations, but it's right, and it will do more in the long run than sending out another several million checks will.
2 comments:
I agree with you. It's like the family living on credit cards, only without the option of filing for bankruptcy. At some point you have to spend less than you make, which usually entails a combination of increased income and decreased spending. It is accounting 101.
I hope the new administration is willing to take the unpopular route for the good to the nation.
I agree...Dave Ramsey, put our government on a budget!
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