Get Ready For Round Two

The checks have not even been written and mailed and we are already hearing how the spending bill was not enough.  Get ready for round two.

February 15, 2009

Are you ready for 'Stimulus: The Return?'

Rick Moran
It wasn't big enough? 

There are Democrats who are already saying that the $787 billion budget disaster that was just passed isn't going to do the job, that we have to come up with an additional unnamed hundreds of billions in order to save the economy:

Despite the enormous size of the $787 billion stimulus plan, some economists worry that it won't make a big enough dent in unemployment and that lawmakers will have to work on another stimulus in short order -- something members of Congress are loathe to discuss.

Yeah - I'll bet.

"That's possible," said Alice Rivlin, a former Clinton administration budget director. "I think the economy is getting worse quite rapidly and this may not prove to be enough."

Even with the stimulus, most economists believe the first half of the year is likely to be miserable with businesses continuing to slash production and jobs. The unemployment rate, which is 7.6 percent and historically continues to rise even after a recovery begins, could get close to 10 percent, analysts said.

For you latecomers to this debate, Obama thinks the stimulus bill will "create" 4 million jobs. Despite the fact that even in a recession, the economy continues to create jobs, any impact the stim bill will have will be impossible to judge. Which jobs were created by normal economic activity and which as a result of the stimulus? How many?

The stimulus got "less stimulative," Rivlin said, as it passed through the Senate and some of the things that offered "the biggest bang for the buck" were scaled back, such as more money for food stamps.

Nigel Gault, an economist with Global Insight, was among several analysts who cited the addition of a fix for the alternative minimum tax as one of the bill's disappointments.

"Telling people you're not going to impose a tax increase on them they weren't expecting in the first place is not stimulus," he said.

Gault and others estimate the stimulus will create about 2 million jobs, while President Obama's economic advisers estimate it will create or preserve 3.5 million.

Keeping track of whether the stimulus meets the administration's goals -- and hence whether another stimulus may be in order -- will not be easy because there is no way to know how many jobs were saved, analysts said.

"The point is to lose less than we would otherwise. It's very hard to measure that," Rivlin said.

Can you imagine what the Democrats will load up a "Stimulus II" bill with? 

As long as Obama and the Democrats keep up with the fear mongering and economic Armageddon talk, they will probably be able to get what ever they want.

February 16, 2009

The Stimulus Bill Smells of Turpentine

By Paul Shlichta

I suspect that Obama has in mind a definite ulterior plan, for the sake of which he wants the current stimulus bill to fail to revive the economy.

The porcinity of the stimulus bill is beyond any question and well documented. But mingled with the bacony aroma that so inflames the appetites of politicians and lobbyists, there lies another odor -- the reek of turpentine.


I'm referring to the old story about the farmer who had a sick horse and wanted to call in a vet.  His neighbor said "You don't need no vet. Just feed him turpentine: two spoonfuls a day." The farmer tried it and the horse got sicker. The neighbor said, "You're not giving him enough; double the dose." The farmer followed the advice, increasing the dose several times, until the horse finally died.  While the farmer was burying it, the neighbor happened to drive by. When the farmer looked up at him, he hissed, "You didn't give him enough," and drove away. 


This ploy is often used by school boards when their students continue to fail despite increased budgets and smaller classes. Invariably, they blame their students' failures on insufficient funding. This excuse is a common resort of public and private administrators whenever their funded projects fail to live up to expectations.


The turpentine ploy provides politicians with a win-win situation. If their project succeeds, it's because of their brilliant leadership. If it fails, it was inadequately funded and needs more money.


Usually, the turpentine excuse is not advanced until the failure of a project becomes evident. But before the stimulus bill had even passed, Obama and the Democrats hinted about its likelihood of failure.  Obama himself warned that:


"our nation will sink deeper into a crisis that, at some point, we may not be able to reverse"[boldface mine in all quotes].


Rep. Brian Baird (D-WA) warned in a recent e-mail:


"... The conditions created by excessive debt on both the federal and personal level, our rising trade deficit, and the rising costs of energy all suggest that we will face painful economic times for some time to come."


And MoveOn -- Obama's personal cadre of brownshirts---has circulated claims that:


"conservative Democrats and Republicans got away with slashing key parts-billions for education, green jobs, and health care-in favor of tax cuts for the rich".


Why are the Democrats already calling for more turpentine? Don't they have any faith in their own program? The most logical answer is that they want the stimulus bill to fail. One need only to peer through the gauze curtain surrounding the bill to perceive that Obama's true purpose is (1) to pay off liberals by keeping his campaign promises to fund their pet programs and/or (2) to cause a financial crisis, as per the Cloward/Piven Strategy, for use as a pretext for increasing federal power and paving the way for socialism. To achieve either of these goals, the present amount of spending will probably not be sufficient and future increments will be needed. Therefore, the public must be persuaded to keep increasing the dose.


A couple of centuries ago, turpentine was used as a medicine for animals and men.  We now know that it is toxic. The physiological symptoms include nausea, confusion, stupor, and anxiety. The political symptoms are pretty much the same. In both cases, prolonged use can cause systemic failure -- which is why we cannot allow the Democrats to pour trillion dollar doses of turpentine down the throats of the American people.
Grits4life Grits4life
46-50, F
5 Responses Feb 16, 2009

As much as I hate to say this...I think it is over. The Republic is dead. The socialist agenda is here with the full support of Congress. I am deeply distressed although I knew this day was coming long ago.

I have been watching cspan today as they discuss this. it is running the same course as the spending bill last week. Repubs are asking for debates and the time to ensure the right things are being done and the dems are blaming bush for everything and that the high spending is required to help the economy........<br />
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this will pass just like the last one and there will be more to follow.

Round Two ... er Three, is the Appropriations Bill now in Congress.<br />
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Higher taxes, more earmarks, larger government, fewer government services (more oversight = interference) ... is what we can expect.

smoke there are so few of us here who know this truth.

I have said this before and will say it again. Let the banks fail. Even thought i would lose my job, I believe in a Free Market Economy. These idiot bankers who own avarice is at fault should not be paid for by the American public. I would fully support public punishment of these people, much like people being thrown in the stockade in days of yore. The Government needs to abolish the Federal Reserve (which is a privately run institution) and invest in our nation's infrastructure and energy programs. That would create new industries and be a shot in our arm. Bailing out and nationalizing the banks is not the answer.