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The State of the Union will focus on "fiscal discipline" a year after the government passed an $850 billion "stimulus" boondoggle that stimulated nothing. Of course the President won't mean anything he says, except that he wants to spend more and more money that this country does not have.
The President will also announce a new Stimulus Bill, since the one last year did so much good for nobody. This one will be much much smaller than the one last year. Oh, that should do nothing at all. Political graft, corruption and paybacks is what we had from the last Stimulus Bill.
The AP now reports that the Obama administration will announce an $8 billion plan to launch high-speed rail corridors around the country. You can already imagine land being seized in imminent domain and lawsuits from environment groups and tax payers feeling a pain in their wallet.
Talk about a massive white elephant that will put the "Big Dig" in Boston to shame. If AMTRAK can't make a dime, does anyone think a new rail system won't require massive subsidies for a far as the eye can see? It will be sold as a "jobs" program, but we all know better. We all know that when government "creates jobs", more jobs are lost in the country to pay for them than are created.
Again, these rail systems will be built by union labor, train engines built by GE- a major supporter of the President. You can also bet it will cost a lot more than $8 billion to even get several of these projects off the ground.
You are looking at this the wrong way. Out of control government spending is unavoidable, because the majority in Washington believe in the dogma of Keynesian economics. As long as liberals and big government Republicans believe that government spending stimulates the economy with a positive multiplier, we will continue down this fruitless path of higher debt and malinvestment.
ReplyDeleteThe economic problems we currently face are too numerous for me to respond to, but a good short list of solutions would include raising interest rates(market based interest rates preferred), cutting government spending, keeping tax rates competitively low, weening ourselves off a fiat currency, and making the labor market more liquid.
I have plans for that in due time. I am trying to condense my new "platform" to 8 or 9 positions that will find wide support among regular people.
ReplyDeleteAt least it looks like the Bailout has been almost all paid back. They might even make a profit when it's all completed. As the article says, that's not bad for saving the world economy.
ReplyDeletehttp://www.progressinaction.com/obama/700-billion-bailout-almost-completely-paid-back/