Carnes: Stop trying to stimulate us
Please, Mr. Bush, Mr. Bernanke, and all of Congress, our pocketbooks are already so overly stimulated that it’s like forcing a half-dozen Red Bul’s down my 8-year-old’s throat 20 minutes before he runs a GS down Gold Peak.
We’d all cringe at the inevitable crash.
Listen fellas, we don’t need it, don’t want it, and anyone with more brains than a ski pole knows that an “economic stimulus package” magically created from government non-existent cash will have as much impact as Peyton Manning in this weekend’s Super Bowl.
Jeez, give us a break.
No, no, no, I don’t mean it THAT way. I simply mean back off the idiotic thought process that sending Joe and Josephine Six Pack and the little Packs to the mall will solve our economic woes.
Are we absolutely sure The Onion didn’t put this idea together?
This stimulating gobbledygook is nothing more than an impotent transfer of welfare debt that will have no long-term benefit to the nation whatsoever, but in the short term will certainly help a few kids finally get their new Xbox 360.
It is an unfunded tax rebate dug from the apparently bottomless pit of forced borrowing. Just watching Nancy Pelosi on C-SPAN for two minutes last week is proof positive that Congress cannot manage their lunch menu, much less the national economy.
We might as well be handing out scratch lottery tickets.
This is just another debt that has to be serviced and ultimately repaid by the American taxpayer, and correct me if I am wrong, but isn’t that what forced us to this dance in the first place?
Bush’s poorly thought-out plan includes rebate checks of $600 to individuals and $1,200 for couples making less than $150,000 per year. Another $300 is tacked on per kid, so hey, sex pays!
It’s like we have completely forgotten the immortal words of George Bernard Shaw in 1944: “A government which robs Peter to pay Paul can always depend on the support of Paul.”
Of course Paul cannot wait to receive his “rebate check” so the whole fam damily can really enjoy their next trip to the Mile High Flea Market.
When, and if, this money is received, there will be only two or three ways with which it will be spent, none of which will be of any significant help to our national economy.
Since most American consumers are already deeply in debt, those with an ounce of responsibility will use the money to lower debt balances. The other 99 percent will pay an electric or gas bill, or maybe use it to buy a few tanks of gasoline, and then blow the rest of it at the mall.
And what will they purchase at the mall?
Mainly stuff made in China or Mexico, with the proceeds being used to purchase more stuff from China or Mexico, which will do wonders for Chinese and Mexican owners and their ability to hire more Chinese and Mexican employees.
But none of the above will help one iota with American inflation, our skyrocketing national debt, record mortgage foreclosures, housing values, portfolio values, a grossly over-expanded money supply, annual double-digit increases in health-care premiums, etc.
A definition of insanity is doing the same thing over and over again and expecting different results. This is nothing more than repeatedly throwing money on a situation and hoping it “just might work this time.”
It never has and never will. Lipstick on a pig is just prettier bacon with a heartbeat.
Let’s call this what it really is, an election year pandering scheme to win votes for the Republican Party next November. But never fear, for the Democrats are just as guilty of the obvious political indulgence. They know that if rallied against, they will be accused of ignoring the “little man” and certainly lose votes.
What’s really sad for the fiscally ignorant is that this whole deal might actually prolong the recession, if indeed there is one.
Take a simple look at financial markets over the last half-dozen decades, and then combine that with long-term trends in housing, income, debt, investments and inflation and you will see all the arrows pointing to an economy on the verge of a major correction for quite some time.
That time is now, and those who have planned correctly will be able to ride out the storm, but for those currently enjoying homes and vehicles they cannot afford, look out for the Repo Man.
I, for one, am looking forward to the dollar having some real value again. If I receive a check, I think I’ll use it to buy some more gold.
NOTE: The preceding opinions belong to Richard and are not necessarily shared by this newspaper … but they should be.
Richard Carnes of Edwards writes a column for the Daily. He can be reached at email@example.com.