Friday, February 6, 2009
The Stimulus Plan
This really is a little off topic, but since I have no lesson plans to post, and it has been on my mind lately. So I thought I was start a discussion, to see what others think. I have very ambivalent feelings about the whole thing. Florida really needs this money, but how does it really stimulate. It will save the state budget, but will not stimulate any new jobs, or help the housing market. The first TARP has been a huge failure. The second one is getting set to be paid out, with no real thoughts of how it will help. Now there is news that a third TARP is in the making, come on really now. The stimulus package being proposed, and attempted to rush through the senate, is only 1/3 of stimulus and everything else is pet projects that members of the House have been trying to get through for 30 yrs. Stimulus is needed to make new jobs, and help the housing market. Anyone who understands Economics knows that the real problem is that people are not spending money. Either because they do not have the money to spend, credit is not being given out freely, or they are afraid to spend money. There is no confidence, and that is not going to change by the government spending a trillion dollars of tax payers money, on things that not only probably will not work, but will not work for at least two or three years. Our taxes will only go up, which means we will spend even less. Companies will continue to lay off workers, even with the stimulus plan. Why, because they need to make profits. That is what being a member of the Stock Market means. You need to make a certain amount of profits to participate in the Stock Market, and when people are not spending you must make cuts to keep those profits at that magical number. A lot of these companies laying off workers, lost profits, but were still making money. They just were not making as much as before. Some companies truly went under, but most are just looking greedily at their decrease in profits. This has to do with the Stock Market, and being part of it. They are rushing this thing through so fast, that we can not even get a handle on all of it. Obama is getting irritable, and testy because these are all projects he wants done. He is using the financial crisis to achieve campaign promises such as Health Care, and Green projects. He promised change, but he is now using the same scare tactics Bush used to push through the first TARP plan. They keep saying this full jobs, and they are using scare tactics. We are going to most likely lose those jobs anyway, at least for the next few months. Why not slow down, and get it right, instead of rushing, and pushing through nonsense. Does he not realize if this fails, and does not work it will effect him if he decides to run again. Take the time to do it right.