We are spending billions of dollars in so called stimulus packages that does not seem to be stimulating the economy as many had said such reckless monetary packages would not work. The only way to stimulate the economy is to put money in the hands of those who spend it, the people. That is why whenever or wherever we have seen tax reductions, the economy has increased. That is why states like, California, New York, New Jersey etc are have budget shortfalls. Keep on raising taxes, and the people will either move out or have no money to spend.
As far as the bailouts are concerned, we can clearly see that the purpose of these were to make sure the unions survive as part of a political payback for their support during the last election. The auto companies should have been told to file for bankruptcy and reorganize as other companies have done in the past and have come back better and are still in business. Now we see how the UAW has a larger share in Chrysler over the investors who have lost millions. And these investors were not just individuals but pension funds and other state investments. But this administration is more concerned in benefiting the unions over the investors. So we are spending more money that we do not have and eventually this country will be printing money that will be worthless. After isn’t this what got us in trouble in the first place, people spending beyond their means. Just because it is the government doesn’t mean it will not happen. I cannot tell if the road we are traveling is madness or insanity.
Monday, May 25, 2009
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