Election-year economics: Another stimulus package?
Today's Financial News - Posted October 20, 2008
Capitol Hill is at it again. As if spending over a trillion dollars was not hard enough on the federal budget deficit, our left-leaning leaders want to throw even more free money into the economy. If you want a healthy economy, do not cash those checks.
By Andrew Snyder
Baltimore – (TFN): I used to think Ben Bernanke had an enviable job. As the head of the nation’s Federal Reserve, the man has his thumb on the pulse of the American economy. More importantly, he has access to powerful tools that can shock it back into rhythm when it the economy is threatening to quit.
But lately, Bernanke’s job has turned too “Washington.” Over the last month, it has turned into a job of politics, not economics. The Fed chief spends more time discussing politically motivated bailouts in front of congressmen panning for votes that he does sitting at a desk crunching numbers and finding a justifiable solution.
Bernanke fell into the trap of Capitol Hill this morning. Answering harsh questions in front of the House Budget Committee, Bernanke admitted he believes yet another economic stimulus package may be needed to pull America from the unrelenting grips of a powerful recession.
That single gesture was likely enough to give the Democrats the fuel they needed to get another wasteful spending package through Congress. Over the past two weeks, their whispers of another stimulus bill have gained momentum quickly. Now, they will undoubtedly be shouting for another package.
The left side of the aisle is calling for a bill that promotes infrastructure spending, aid to fiscally troubled states, increased food stamps, and increased jobless benefits. The right side is not so fond of the idea.
It is an election year. Who needs economics?
Frankly, I am not sure if this notion is designed to get the nation’s economy back on its feet (because it won’t) or break the nation’s fiscal back so we depend on our government for everything. We already have a yearly budget deficit with more zeroes than will fit on my calculator and our so-called leaders want to add even more figures to it.
When Ronald Reagan said the only thing a bigger government does is cause bigger problems, he showed his understanding of the free markets and an independent economy. The American hero must be rolling in his grave as this new batch of want-to-be socialists write check after check.
America is in grave danger of a major economic downturn. But the crisis that will take us down will not be from poorly priced credit default swaps, failed mortgages, or high fuel prices. We will be financially destroyed by a tax-and-spend Congress.
The federal government can only borrow so much money. Eventually, our lenders will demand higher interest rates. When they do, the value of the dollar will plummet. Inflation will reign. And the quality of every American’s life will suffer.
It is time to demand change inside the beltway.
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October 20th, 2008 at 3:48 pm
Bailout this Bailout that…Where does the money come from in the so called global financial crisis. Have you looked into who owns the U.S. debt?
http://nomedals.blogspot.com