Thursday, February 12, 2009

Why Speed is the Necessity for Stimulus Bill


Why is it necessary to pass this stimulus bill as soon as possible? It is simple, for the same reason that it is important to pass environmental legislation as soon as possible, the first one will correct itself if left alone and the second is a myth, so the speed is about using emotion and insecurity as a power grab. This stimulus package is nothing more than government trying to take over every industry imaginable. Recent numbers show retail sales up 1% in January, the biggest increase in 14 months and new jobless rates decreasing. All this after congress has compromised on the power grab bill. I'm no different than the American public. When crisis hits, I tend to panic at first. Panic leads to irrational decisions.
Over the last several months, everyone I know that has a job has spoken about cutting back spending, paying off debt, and saving. Going on the assumption that the media has blown this issue out of proportion to first elect Obama, and second to let him grab more federal power, I spoke to a co-worker a couple of weeks ago and expressed my theory of repressed spending. Repressed spending is the voluntary reallocation of funds from activities that result in the permanent or temporary increase in assets. In plain terms, you stop buying stuff and eating out. As Americans we love to do both, and so long as we have a job, no matter what the news says, we will want to acquire things. The more disciplined of us will acquire things using cash only. So, as I drive past car lots, I started to think that at some point, all these people who haven’t been buying while they wait things out will start to buy again and we will see surges in retail. Sure enough, we may be seeing signs of this surge. Obama, take your power grab and throw it in the trash. We have it under control.

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