Sunday, February 15, 2009

I Am Done with the Stimulus Bill

Final thoughts on the stimulus package.
First i just didn't get to this: Economic incest

"Government doesn’t make wealth. To the extent the government has wealth, it’s because it uses its police power to demand that we give it our wealth in the form of taxes. The government hasn’t created anything. In today’s America, as in all modern economies, only the people create wealth."

"Keep in mind that, in terms of a biological population, incest occurs when there is no new genetic material. If the same gene pool keeps recycling itself, it replicates errors, useful genes vanish, bad genes multiply, and you rather quickly end up with the Hapsburgs: ugly and insane.

The same thing occurs within the closed circle of a completely government run economy. It’s the same money cycling endlessly around. No new money, no new ideas. Instead, everyone constantly siphons off a little, government bureaucrats make mistakes that result in gold vanishing permanently, and corruption becomes the only way for those in the power seat to generate a little private wealth."

It goes on that this is socialism and is dangerous.

Second, this package is out of line with the traditional arguments. On the conservative side more econimic freedom (creates wealth and innovation) and less social freedom (responsibility) The liberal side less econimic freedom (hurts people less) and more social freedom (feels good do it).

It can go to far in both directions. The excessive restriction side is what we are playing with here. If you have restrict social freedom to much you stifle innovation that leads to economic stagnation and eventual a totalitarian state( the Middle Ages). On the other hand less economic freedom means less wealth creation and innovation. That leads to shrinking economy and more people get hurt. Then the state has to steps in and keep the people from hurting. As those costs rise there are more restrictions to keep the cost down. Again a totalitarian state (U.S.S.R.).

So the bill is seeking to limit the hurt caused by so call "too much economic freedom". In reality it was too much economic restriction in the first place(pushing housing, tax law, less transparency, wealth transfer to government for welfare, ect.). They restrict the economy further so fewer people get hurt and then give them help. Then the strings and restrictions on those that get the help. When everyone gets the help, everyone gets the strings. They "for the social good" make everyone take the help. Some banks where forced to take TARP money and everyone gets a tax cuts. It is going quickly off the rail. The over restriction of economic freedom will feed on it self. Give people more, take more from the economy. Costs go up, restrictions go up.

It all make sense in my head? hopefully it makes some sense.

Finally I am not going to cover the little drips of pork coming to light. I am concerned about the pork but hiding behind it are policy changes. Changes made in the middle of the night that where not debated or opened to the light of day. I will try to bundle them together and post a few at a time. The bill is done. The direction is set. Time is better spent now trying to change the path of we travel. America Is not dead but is on life support with the paper work to pull the plug coming from Congress.

Finally, really this is it. I will however happily hammer away at those, as the election comes around again, that say this fixed any thing. There are a very small but growing signs of recovery now and before Congress passed this bill. The stimulus bill may help for the short term but has a good chance of pushing us into a depression after. It is going to be about timing. If at the height of the little recovery the liberals convince us that its over. It is OVER. If we are just pass it and the fiscal conservatives can convince us the stimulus didn't do much. We might have a chance. So hammer away I will.

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