Establishing the fallacy of goverment stimulus spending

| October 2, 2009

"The stimulus is changing the trajectory of our economy." -- Joe Biden, September 3, 2009

Don Surber zooms in on the relevant portion of reality vs. hope-and-change. Obama and the Democratic Congress sold us on a horrific “stimulus” package with the threat of 9.0 % unemployment if they failed to act. They acted, and unemployment is now approaching 10% and may hit 12% next year. In the meantime, the national deficit has exploded and will be massive for years to come.

The sad thing is that for less than half the cost of the “stimulus” package ($304 billion vs. $787 billion) , the US Government could have simply suspended all corporate income taxes for an entire year. For another $20 billion or so per year, the US Government could have suspended the dividend and capital gains taxes indefinitely. Those two changes would have done more to create actual jobs and revive the economy than all the make-work “shovel ready” projects that the Obama Administration touted (but is now strangely silent about — except, of course, for Joe Biden, but nobody is paying much attention to him these days).

If unemployment really is in double-digits next year, then look for the Republicans to take control of the House and make modest gains in the Senate. ..bruce w..

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Category: 2010 Election, Business, Creeping socialism, Economics, Healthcare Reform, Idiot Congresspersons, Main, Obama Administration, Sea of deficits, Stimulus, US Politics

About the Author ()

Webster is Principal and Founder at Bruce F. Webster & Associates, as well as an Adjunct Professor of Computer Science at Brigham Young University. He works with organizations to help them with troubled or failed information technology (IT) projects. He has also worked in several dozen legal cases as a consultant and as a testifying expert, both in the United States and Japan. He can be reached at bwebster@bfwa.com, or you can follow him on Twitter as @bfwebster.

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