Tomorrow Barack Obama will sign the Economic Stimulus Plan into law. This day will long be remembered by economists as the beginning of the end. Not the end of this recession, but the end of the United States as a powerhouse economic engine.
Years from now economists and politicians will look back and wonder "How could this possibly happen?" There were no economic conditions that warranted this type of insane deficit spending. The question will be "How could have our elected representatives been stampeded into taking such self destructive action?"
"How were our representatives tricked into doubling the deficit by passing a bill not one of them ever read?"
We are undoubtedly headed into a major depression that will be combined with massive inflation. In two to three short years, once the major tax hikes already written into law take effect (the expiration of the Bush tax cuts), the economy might will totally self destruct.
The packages extremely minor tax cuts (a 13 dollar a month joke, really) will expire after a few months, not that they will help stimulate the economy. But the insane deficit spending will just be ramping up. Much of this spending will create no jobs.
Unemployment will go well into double digits and inflation will follow, basically destroying the working economy.
What can we do now? Well, economists are beginning to speak up. The alarm bells are sounding. Contact your Senators and Congress persons. We will need to return to spending sanity. And we need real tax cuts that will spur permanent private sector jobs. These will not need to be costly.
Fixing this Stimulus Package error, made on the spur of the moment and without any thought or consideration of its impact, will take many years of tough effort to correct.