05 February 2009


The congressional "stimulus" continues to balloon into a monstrosity. At present it would increase the federal discretionary budget by 80%. That means all the programs and departments that have built up over the years provide a baseline to which 80% more spending is added. Thus the only thing being stimulated is the government. The Democrats have managed to pack in every agenda item on their list under the guise of stimulus. If it were to pass they could actually go home because they will have managed to install their entire agenda in one bill. Growing the government is no solution to the economic situation, particularly when these "temporary" expenditures are likely to become permanent and spread out over years. This will surely only make things worse, and as presently constituted no stimulus is preferable to this. A tax reduction would have far more impact without creating all the damage this bill does. A temporary reduction in the payroll tax would immediately put more money into the hands of lower income people in a meaningful way and jump start spending. Encouraging private spending is the answer, not government.

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