Hey everybody, I found the stimulus. And we're in luck -- it requires no additional action on Congress's part. It's already in the works.THE ASTUTE BLOGGERS LAST WEEK:
The Congressional Budget Office projected last week that even without a stimulus package, the federal budget deficit will hit $1.2 trillion this year. That's 8.3% of gross domestic product. Followers of the late John Maynard Keynes should be thrilled. Such a gap between government spending and taxes was just what he prescribed to stimulate a slumping economy.
And yet the stimulus enthusiasts seem unsatisfied. President-elect Barack Obama argues that this level of stimulus would leave us with shattered dreams and long-lasting torpor. Our only chance is to adopt his plan of $800 billion in additional stimulus spending over the next two years. So $1.2 trillion in deficit spending leaves us in despair, but $1.6 trillion in deficit spending brings prosperity.
The basis for this reasoning is unclear. Keynesian macroeconomics argues for deficit spending. We've got lots of that. We also know there are costs to overdoing it. Ultimately, government borrowing must be paid back. And if government borrowing is excessive, at some point we will have some combination of inflation, higher interest rates and higher taxes. The danger now of excessive borrowing is exacerbated by the impending retirement of the baby boomers and the resulting strain on public finances.
So how does Mr. Obama come to the conclusion that we need more stimulus spending now?
SO WHY ARE OBAMA AND THE MSM BEING SO NEGATIVE!?
TO PASS THEIR SOCIALIST AGENDA, THAT'S WHY.
ACTUALLY, IT'S A FACT THAT THINGS ARE JUST ABOUT AS BAD NOW AS IN…1983 OR 1993…
TAKE YOUR PICK.
WE GOT OUT OF THOSE RECESSIONS WITH DEFICITS WHICH REMAINED BELOW 10% OF GDP; WE CAN DO IT AGAIN.
WE MUST.
REGULAR READERS KNOW THAT THIS HAPPENS ALL THE TIME BECAUSE WE DON;T JUST FOLLOW THE PACK.
SPREAD THE WORD. BOOKMARK US. BLOGROLL US.
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