Second Stimulus In The Works

by Sal on July 8, 2009

in Economy,Politics

Laura Tyson, an adviser to President Barack Obama, is now advocating a second stimulus…er, Porkulus package as a solution to the economic mess that we currently find ourselves in.  House Majority Leader Steney Hoyer is open to the idea of a second stimulus, while Senate Majority Leader Reid is skeptical.

This falls under the definition of insanity — trying the same thing repeatedly expecting different results.  The first stimulus is not working, and is in fact likely to make the economy worse.  The Democrats, however are tone deaf to this.  Says Hoyer, “…we believe it is working. We believe there are a lot of people who otherwise would have been laid off, lost their jobs, who haven’t done that.”  Now THAT’s a measure of success, and a completely non-provable assertion.  In fact, the entire stimulus project has consisted of a collection of back-room pork deals, with money not even being spent on what it was intended for, and faulty reporting designed to make the stimuls seem more successful than it actually is.

Democrats should face facts.  Increased government spending does not work to stimulate the economy, because the government does not create economic growth.  It is the hard-working American people, the entrepreneurs, the greedy capitalists, who create jobs by providing products and services that people want, and constantly improving them because of competitive pressure.  Government stifles that ingenuity, and if the Democrats get another Porkulus bill, it will be even worse.  Additionally, another Porkulus bill will significantly increase a budget deficit that is teetering on the edge of being unsustainable.

A better solution to the current economic crisis would be for government to get out of the way.  Cut needless programs, cut waste, cut spending, and then, most importantly, cut taxes.  Cut the Corporate Income Tax, the Capital Gains Tax, and the Personal Income Tax.  Ensure that spending cuts are done concurrently to match the tax cuts so we don’t worsen our budget deficit.  This would result in increased investment and new private sector jobs that would push the economy into a new period of prosperity.  Obama and the Democrats, however,are completely tone deaf and know only how to spend.

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