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The Truth About the Stimulus Package
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It may not be 'political' to openly say so, however, the United States has barely enough heft to lift its own boat; to expect it to lift those of all nations, of the global economy, is a noble thought but completely unrealistic. All nations will have to do their share for the worldwide bailout. And the plain truth is that there is a great difference between the two main parts of the stimulus package in terms of where the funds end up. The money granted to banks and to taxpayers (the part the Republicans want to increase) can flow any old place. The banks can lend money to corporations that open plants overseas and outsource jobs, or they can simply invest in other nations' economies. The same holds when taxpayers buy goodies with the money they are allotted.
In contrast, funds allotted to making America greener, shoring up the crumbling infrastructure, improving the education of Americans, and developing new technologies at home -- the part the Democrats are trying to protect from Republicans -- all initially help the U.S. economy (other nations will benefit in turn). Funds dedicated to fixing a bridge in Minnesota, to the electrical grid that serves the nation from coast to coast, or to local schools from New York to Los Angeles -- will not end up in China, India, or any other place.
One may say that all nations are throwing money into the bailout pot, and we should add ours, making for the needed grand global stimulus. However, other nations are dragging their feet. Germany finally decided to cough up some money, but far from enough. China is focusing on protecting its economy by manipulating its currency, and so it goes in other nations. Until they are willing to do their share -- given the precarious condition of the U.S. economy and its already over-stretched commitments and shortage of funds -- the Obama administration is right to lift our boat first. That is, rail against even larger tax cuts, and support investment in America's future.
Amitai Etzioni is a University Professor at The George Washington University, and the author of The Moral Dimension: Toward a New Economics. He can be reached at icps@gwu.edu
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The way to go is to invest as far as possible in things that will lead to future benefit. We have to stimulate the economy but also to eliminate the trade deficit, rejuvenate U.S. manufacturing, and eliminate dependence on oil. These goals are not mutually exclusive and the result would make the U.S. stronger. The flap over "buy American" in the stimulus bill. Most of our trading partners don't have to be specific. They always buy domestic as far as possible. Time to focus on the home front.
THE BEST STIMULUS:
GOVERNMENT PROVIDES ME WITH ALL OF MY NEEDS
I STOP WORKING
PRESTO!
How about this for a stimulus. Give us the 800+ billion along with the rest of the 300+ billion tarp money. We can 1) pay our credit bills (giving banks the money), 2) save (giving banks the money), or 3) spend the heck out of it. Plus, it's our money anyway!
that is the best stimulus plan I have heard yet. Too many politicians and even people forget that these are our dollars that are taken away from us. The govt clearly doesn't know what it's doing. We should get our money back.
This is definitely NOT your or our money. It will be borrowed from whomever will loan it to us, or it will be printed fresh for the occaision.
This is because (if you don't know) we do not raise enough in taxes to pay our bills. War is off the books and no one knows what it costs.
Yep you and all of your right wing buddies don't want to pay taxes, well guess what... if you're going to take advantage of what little infrastructure is left after the last 8 years, you can either pay your share or move.
"Government doesn't work. " When someone intentionally sets forth to damage the institutions that make government function properly, it can't. If we want a government that truly works as the founders designed, then we... all of us must do what we can to see to it that it works. Taxes are part of our responsibility as citizens.
Because (in theory) our government is by, of and for the people. We are our government.
And what will you pay it back with? The job you don't have? If the borrowed money isn't invested in something that increases people's ability to pay back the loan, it's just another 'credit bubble' that will burst.
since the govt can only spend a dollar by first taking a dollar away from someone else how govt spending ever going to fix any downturn in the economy? Since the govt is actively taking more dollars away to spend on politicians pet projects wouldn't this exacerbate the problem?
I though maybe that was a serious question, so I thought I'd answer.
The government of the people of the United States of America represents its sovereign people, having won our war of independence over two hundred years ago.
A sovereign nation has a right to its OWN money system.
That's kind of the definition of a sovereign country.
The government of this sovereign country turned the right to ownership and operation of our money system over to the private federal reserve banking cartel(system) in 1913.
That same government has the power to take that right back to the people.
That was the recommendation of the Chicago School economists to FDR in 1933 after the Depression proved the private banking system wasn't working.
The government does not need to take every dollar it spends from the people.
If we the people say so, the government has the right to create the nation's money debt-free and issue it directly to American taxpayers and businesses in order to provide a means of exchange in the economy.
It's not a free lunch.
The amount of money created is only equal to what we produce in the economy.
You can borrow a couple thousand dollars to buy a new plasma HD TV home theater system, or you can borrow it for tuition for a two-year course in Micro-Electric Mechanical Engineering at your community college. Which one will pay for itself in a few years? 'Pet projects' is a committee of hundreds, each representing thousands, who all have an interest in getting part of the investment where it will improve their futures. The current ARRP bills are significantly lacking in localized expenditure, which benefits the few and not the many. Usually known as 'pork.'
Economic Stimulus Package
I tend to agree with Senator McConnell,
We should take his advice, that way we might be able to attain the Conservative Movment Goals of 3% having all the wealth in the nation and the rest of us in the poor class achieving the complete goal of wiping out the entire middle class
o
We have had a good 8 year start thanks to the superb job George Bush did in his administration.
As proof, look where are Country is today!
Helluva job "W"!!
As it was almost exclusively American finacial wizards who committed this Insurance Fraud For The Ages, and American rating agencies that rated the toxic bonds Triple A, it is amusing to note your admonishment of other nations for not donating enough to the grand global stimulus. Perhaps they lost their dough already believing in American ratings and institutions, both of which have historically been seen by investors overseas, institutional and private, to be more truthful than the American government.
On the other hand, according to the New York Times (Times Topics - Derivatives) the world derivatives market is $531 trillion, with JP Morgan Chase holding some $90 trillion, the most of any bank. (To understand the size of this market, readers should note that the US GDP is $14 trillion, and the total world gross product is about $55 trillion.)
Who can make good on a debt that is ten times the GDP of the entire world? When? By what means? Nothing anybody is going to do can fix this 'system', eaten away from within and now bereft of value.
Really good comment.
It is an utopia to think that America can get out of this mess without working
in concert with the rest world and the same goes for the rest of world, there
is no sustainable recovery without America. We are all in the same boat
Please explain how "improving education" immediately helps the economy.
Please explain where you saw the author say that 'improving education' would immediately help the economy.
It cost a lot less to educate someone than it does to house them in prison.
a whole lot better than building new schools in Iraq and Afghanistan. Not to mention the b.s. embassy in Iraq and the 4 new bases we are trying to get finished there.
More schools and upgrade schools: builders and electrical and plumbing contractors get jobs and hire general labor. Smaller classes: more teachers get jobs, from the elementary classroom to the college campus. More music and art and better food in the lunch programs: people get jobs making and selling supplies. Better educated kids means more people with the skills to be productive in the future, so it's not a one-shot deal.
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