Monday, February 16, 2009

How Did This Happen? What Do we Do Now?

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.


Kentucky Rain said...

I just watched the signing of this historic bill and applauded President Obama and the Democrats who had the courage to do something, as opposed to the Republicans who whined and moaned and did nothing but recommend a return to the economics of the last 8 years. I do intend to write to my representatives, but it will be to thank them for their integrity and for their efforts, albeit rebuffed efforts, to engage the Republicants in sensible dialogue and a search for real solutions, not more of the same.

Unknown said...

I want some of what MadMike is smoking.

Unknown said...

Seven Broken Promises in Record Time

1. Make government open and transparent.
2. Make it "impossible" for Congressmen to slip in pork barrel projects.
3. Meetings where laws are written will be more open to the public.
4. No more secrecy.
5. Public will have 5 days to look at a bill.
6. You’ll know what’s in it.
7. We will put every pork barrel project online.

If it not for double standards, Obama would have none.

Bob Keller said...

MadMike, While I hope and pray with all my heart that this plan will ignite the economy and begin a rebuilding process, I can see and have read absolutely no evidence or analysis that supports such optimism.

Lee and Mike, Please note that I purposely used NO LABELS or political parties in my essay. And I will not reduce this to partisan politics as usual.

The President and Congress made a huge and tragic mistake. Analysis I've heard today indicate their will be no job creation for almost two years. This is not stimulus, it's criminal!

But many Democrats voted for this in good faith and belief that it would help. Many simply were playing politics as usual. Conversely, many Republicans voted against this package because they realized the plan for the horrific disaster that it is. But MOST Republicans were simply playing the same old political game.

The plan will fail and will actually deepen the recession and move it to full blown stagflation that will rob every American of their income and savings.

That certainly wasn't what anyone wanted. But partisan politics as usual paved the road to this immense disaster.

How the hell did our elected officals let this happen?

Kentucky Rain said...

Wizard how about giving it a chance? I am sure President Obama didn't shoot from the hip with one. Let's just see what happens. There were no other serious options to fixing the economy. Everything comes with risks.

Unknown said...

"There were no other serious options to fixing the economy." Actually, there was several better options.

Bob Keller said...

Mike Actually Obama had almost nothing to do with the (it sure ain't) Stimulus Bill beyond providing broad guidelines (40% tax cuts, 60% work spending) to Nancy Pelosi. The bill was written by the House with little input from Obama or his team. And NO INPUT from Republicans, not because they didn't ave absolutely great ideas and proposals, but becuase Pelosi REFUSED to allow even a single token Republican to participate. No one, not ever.

Republicans' (falsely, as it turns out) beleived Barack Obama's promise of bi-partisanship. They thought he would nudge Pelosi and they would get a seat at the table. But Pelosi stood firm and Obama never forced her (and perhaps never even asked her) to bend, thereby breaking his most important campaign promise.

Sadly, this fake stimulus package is nothing more than a hodge podge of social programs, increasesin welfare limits (which are needed, by the way) and a worthless series of tax cuts that will end up favoring only the super rich.

When you do everything in secret in the dead of night, as Pelosi and Reid did this time, and then force votes before even one single member of Congres ever read the bill, this is exactly what you get.

Kentucky Rain said...

Your statement that this is not Obama's bill and he your implication that he had little input is ludicrous Wizard. Barack Obama has great power at the moment and the congress will do what they are told. I can guarantee you that neither Pelosi or Reid are going to buck this man.

Wizard I know that what you are saying you believe, but there is no evidence, other than from the recalcitrant Republicans, that Pelosi locked them out. On the contrary, super human efforts were made to include them in all discussions but they refused to budge, wanting to stay with the policies of the last 8 years, and determined to damage the new president. They became obstructionists, threatening to derail any type of bill, when the country desperately needs one. Curiously, all but three of the Republican governors supported it wholeheartedly. I can guarantee the other three will fall in line. They won't turn down that money! So why do you think your party was so fractured? The legislators said NO while the executive branches of the states said YES!

Now, where in the world did you get the information that the tax cuts favored only the super rich? Wiz that is a Republican policy and has been since there were Republicans. This is precisely one of the reasons the economy is failing. How can you defend those antiquated beliefs? Obama's policies do exactly what he said they would do. Favor the middle and lower classes. The rich are finally out of the loop so they can get richer without the help of the government.

Once again there were no other viable options. A return to the policies of the Republican years is just unacceptable and dangerous for our people and our country, not to mention the rest of the world that so often looks to us for leadership.

Bob Keller said...

To be certain, Mike, this was an unintended accident of a poorly written bill: Obama Stimulus Saves Microsoft Billionaire Hundreds Of Millions

But with Pelosi bragging "We won the election, we get to write the bills" I'm stunned you've missed the fact that Republicans were totally excluded from both the originl writing of the bill and the House-Senate compromise.

Another quote that typifies Pelosi's unilateral approach was "They just didn’t have the ideas that had the support of the majority of the people in the Congress.”

i.e. The Dems had the majority of the votes, no Republican ideas were needed.

Kentucky Rain said...

Well Pelosi does make a good point Wizard. After 14 years of Democrats being steamrolled by a Republican Congress there was an election. The Republicans lost. I can understand a little payback now and again.

Unknown said...

Which, MadMike, goes directly to Wizards point that Pelosi is undermining Obama for personal reasons.

DoubleEagle said...

MadMike, I'm pretty sure we are drinking from the same glass of lemonade; the bitter-sweet mixture President Obama has poured for us, is to my liking as well, and as "Lee" said in a follow-on post: you're "smoking" some good stuff, which again, suggests you and I visit the same dealer!

I'll have to review the rest of the commentary on this topic before I toss my hat into the ring fully, but during the interim, know full well, your inclinations and obvious support for our current Whitehouse occupant reflect mine as well.

Whoa-Nellie! I just reviewed "Lee's" broken promises post he dropped on this blog, 17 Feb 09. Let's see here, if my math is correct Lee, this new administration hit its 30th day in office on 19 Feb 09 and then of course, its 100th day, TWO MONTHS later. How in the world can one substantiate "broken promises" based on one month of presiding over a Nation of people, its thousands of elected officials (Fed & State) and not to forget, on the heels of one of our Nation's worst Presidential Administration - at least near the bottom, if not: the absolute bottom? As "W" and Big Dick said; History will bare out the truth about the last 8 years. For the first time, I couldn't agree more with their idiotic rhetoric! I haven't the need to read the 9 or so sites you layed up, but from what I gleaned from their titles, their true value is questionable. However, fair play is a good thing, so I'll pluck 3 or the 9 randomly and take a peak. However, if any of the 3 come off like Santelli's raging, colorful, yet meaningless, rant, then I'll get your drift(?) Lee.

Time for me to read on. A seemingly decent exchange going on here Wizard. Thanks for providing this platform; blogging clears the mind and lifts the spirit of necessary exchange between US Million of Minions.

Unknown said...

My point would be, sadly, a politician is a politician.

DoubleEagle said...

Lee, I know many skeptics. T'is time to raise the bar: politically speaking of course.