The latest stimulus bill that President Obama is pushing for is really just the biggest tax refund that the American people have ever received. Whatever you think about the individual items in the bill it all amounts to the same end result. The government will be giving back billions and billions of dollars to the American people. Not just to taxpayers unfortunately, but to everyone.
Think about it for a minute, or two. I know I have. At first I was completely opposed to any form of a stimulus bill. All I could see was wasteful government spending. More and more examples of the government dumping money at a problem with no real idea of what would happen. No real analysis of what the outcome would be. I mean really, how could they calculate something this complex? All of the numbers that come from the government accounting offices, management and budgeting, etc. are in estimated billions, with error factors that could satisfy the wildest dreams of the most spendthrift people. Nobody ever holds them accountable to the projections that they made. Nobody ever looks back at their predictions, (that will be the topic for another blog).
But now I am reconsidering the stimulus bill. Looking at it from another perspective. On one hand you can look at all of the government projects that are over budget, poorly managed and never completed. The other day I heard someone making a comparison between two projects. A private enterprise building project on on side of the street that went up on time an on budget. A government project on the other side that was mismanaged, never completed, filled with corruption, way over budget. They made this comparison with a critical tone, as if to say that the government project was bad and money was wasted. It sounded as if the money were burned in a furnace to hear them complain. I am quite sure that not one dollar was incinerated. It was all spent. Someone cashed every check. All the money went into the economy. I know that the money was mismanaged. Yes it was poorly dispersed, and the good that was supposed to be done with the finished product never has happened. But the money went into the economy.
This why I look at the current economic stimulus bill as a big tax refund. Lets face it everyone knows that the government has been taxing the American people, rich and poor, far too much for far too long. At this point in time I want the money back! I really don't much care how it comes back to the American people. I just want it back. Of course I know that they are just going to tax it out of us again, I am not that gullible.
Look at all the programs in the stimulus bill. Yes, they are mostly pet project for the voting districts that put the millionaires in the Senate and House. Or they are paybacks to the special interest groups that pushed for the "change we can believe in". Make no mistake this bill will pass in one form or another. The Democrats have enough votes to make it without the support of any Republicans. Why do the Dems care if the Republicans are on board? So they won't have to suffer the blame alone when it fails, of course.
See it's like I said. They are giving the biggest tax refund that the American people have ever had. They are just going to fill up the bomb bays of B52s and carpet bomb the country with money. As long as nobody burns the money it will get spent. Some on good things, some on bad. Hookers and churches and everything in between will get some of trickle down from Uncle Sugar. If that was the end of it maybe it would be good, but you know it can't stop there.
No, the next thing that will come from the Democratically controlled Congress and President will be the biggest tax increase ever seen. They have got to get the money back from somewhere, someone. Of course they will say that they are going to tax the rich, but everyone will pay. The Robin Hood complex that has possessed the current leadership of this country will ultimately turn them into the Sheriff of Nottingham and Guy of Gibsourne. Everyone is rich compared to someone else. The taxman will be as blind as the statue of Lady Justice. Armed with the laws and a tax code that will only get more extensive and invasive, the withholdings from our check with reveal the "real change we can believe in" It will be the coins in our pockets and the two cents our opinions are worth. You could spend some of your opinion change by letting your members of Congress know how you feel.
I am the foremost expert on my opinion, now you know why they should have asked me first.
Sunday, February 8, 2009
The Stimulus Bill Proves That Trickle Down Economics Works
I know that in today's sound bite world it is fashionable to mock the simple truth that Trickle Down Economics works. It is easy to join with the non scholars and unobservant educators that discount the concept, because it is counter to what they want to believe. How could what George H. W. Bush called "voodoo economics" possibly be a valid economic principal?
The simple fact of human behaviour, and simple economics is that jobs are created when someone with money needs something done. Someone who needs money works for the person with money. Someone makes a product to sell, and people with money buy it. From the simplest example of a homeowner that hires a painter to paint their kitchen, to a more complex example of investors buying stock so that a corporation can hire workers to produce goods and services. These are examples of trickle down. The money goes from the person who has it to the person who will do something for it. If you invest millions of dollars in a corporation, they will hire workers to provide goods and services. Profits will be made and debts will be paid. If you just give millions of dollars to ordinary people, jobs will not just magically appear.
Isn't this exactly what the stimulus bill is all about? The vast majority of the spending is going to go to some form of business owner, be it public or private, to get something done. Jobs will be created and employees will be hired to get the work done. Money will be given to the owners, or controlling individuals in the companies and it will be paid out in salaries, utilities, raw materials etc. That is trickle down. Trickle down works.
If you allow the business owner to keep more of their taxes, which in turn allows them to do more of the same things they would do with stimulus money. That amounts to the same as giving the business stimulus money.
Think of it like this. The President Obama and all of the Senators and Representatives know that trickle down works, they just don't want to admit it. The vast majority of the 800 or is it 900 BILLION dollars that are in the current form of the stimulus bill, plus all of the billions in the auto industry bailout, and last summer's bank bailout billions; are all going to the top levels of business in one way or another. And if you add any money that will be given directly to American people that is trickle down too, (just trickling down from big government). Why are they giveing out the money at the top? Because they know that trickle down works.
Sure there is greed and selfishness at the top of the business class. There is just as much greed and selfishness in the House and Senate. Truth be told greed and selfishness permeate all sectors and stratas of our society. Human behaviour is as much responsible as it is the product of greed, and selfishness.
There are nay sayers who would contradict and say that all growth must come from the bottom up. Anyone who is really observant of human commerce and interaction knows that everyone is a producer of some sort, but not everyone creates jobs. Not everyone wants to take the risk of being a business owner. Not everyone would be comfortable with a commission only sales job. Some people just want to get a paycheck for doing what needs to be done. Some people will do what is asked of them, and others will do the asking.
Jobs do not flow from the people who want to work. Work, and by that I mean jobs, stream from the persons who want to get something done. They have the ideas, and find the capital to put their ideas into motion. The great force of capitalism has driven this nation to tremendous heights, and I believe that we are not done yet. The rain falls on the just and unjust, but it comes from above. It trickles down from above and all benefit.
I am the foremost expert on my opinion, now you know why they should have asked me first.
The simple fact of human behaviour, and simple economics is that jobs are created when someone with money needs something done. Someone who needs money works for the person with money. Someone makes a product to sell, and people with money buy it. From the simplest example of a homeowner that hires a painter to paint their kitchen, to a more complex example of investors buying stock so that a corporation can hire workers to produce goods and services. These are examples of trickle down. The money goes from the person who has it to the person who will do something for it. If you invest millions of dollars in a corporation, they will hire workers to provide goods and services. Profits will be made and debts will be paid. If you just give millions of dollars to ordinary people, jobs will not just magically appear.
Isn't this exactly what the stimulus bill is all about? The vast majority of the spending is going to go to some form of business owner, be it public or private, to get something done. Jobs will be created and employees will be hired to get the work done. Money will be given to the owners, or controlling individuals in the companies and it will be paid out in salaries, utilities, raw materials etc. That is trickle down. Trickle down works.
If you allow the business owner to keep more of their taxes, which in turn allows them to do more of the same things they would do with stimulus money. That amounts to the same as giving the business stimulus money.
Think of it like this. The President Obama and all of the Senators and Representatives know that trickle down works, they just don't want to admit it. The vast majority of the 800 or is it 900 BILLION dollars that are in the current form of the stimulus bill, plus all of the billions in the auto industry bailout, and last summer's bank bailout billions; are all going to the top levels of business in one way or another. And if you add any money that will be given directly to American people that is trickle down too, (just trickling down from big government). Why are they giveing out the money at the top? Because they know that trickle down works.
Sure there is greed and selfishness at the top of the business class. There is just as much greed and selfishness in the House and Senate. Truth be told greed and selfishness permeate all sectors and stratas of our society. Human behaviour is as much responsible as it is the product of greed, and selfishness.
There are nay sayers who would contradict and say that all growth must come from the bottom up. Anyone who is really observant of human commerce and interaction knows that everyone is a producer of some sort, but not everyone creates jobs. Not everyone wants to take the risk of being a business owner. Not everyone would be comfortable with a commission only sales job. Some people just want to get a paycheck for doing what needs to be done. Some people will do what is asked of them, and others will do the asking.
Jobs do not flow from the people who want to work. Work, and by that I mean jobs, stream from the persons who want to get something done. They have the ideas, and find the capital to put their ideas into motion. The great force of capitalism has driven this nation to tremendous heights, and I believe that we are not done yet. The rain falls on the just and unjust, but it comes from above. It trickles down from above and all benefit.
I am the foremost expert on my opinion, now you know why they should have asked me first.
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