Posts Tagged ‘stimulus’

Income Redistribution: A Stimulating Look at Utopian Economics

October 9, 2010

Albert Einstein purportedly stated, “The definition of insanity is doing the same thing over and over again and expecting different results.” Apparently, the Obama administration disagrees, especially in light of its new report claiming that the spending-upon-spending “stimulus” plan is on-time, under budget and relatively fraud- and abuse-free — other than sending $18 million to dead people, anyway. Moreover, the measure worked as planned, and the economy is back on track. No doubt it’ll be even more robust after even more government spending.

Silly us for believing that double-digit unemployment, depressed markets and unprecedented budget deficits are all indicators of an economy nowhere close to being “back on track.” Our mistake, it seems, was neglecting to use the “jobs-saved” new math that has been the hallmark of the Chosen Administration since its inception. White House officials touted the relatively small number of complaints — less than 2 percent in over 200,000 contract awards — as evidence of the success of the drunken-sailor spending program. We would like to offer a different explanation as to the paucity of complaints, namely, that few complain when a gift horse (read: big government) is throwing billions of dollars at them. Independent of the degree to which spending is “fraud-free,” it’s still spending.

On a completely unrelated note, tens of thousands of workers have just been shown the door, courtesy of the termination of stimulus-subsidized employment programs. A $5 billion program, “Temporary Assistance for Needy Families,” is drawing to an end, and with it approximately 250,000 more will hit the streets and unemployment lines, highlighting yet again that government does not produce jobs. Any jobs it claims to “produce” will both cost more and be less sustainable than would otherwise be true in the free market. Meanwhile, in September, another 95,000 jobs were lost.

In contrast, Jared Bernstein, Vice President Joe Biden’s Pollyanna-ish chief economist, stated that the report on stimulus spending affirms that “the recovery act has accomplished much of what it set out to do.” Sadly, we must agree: Hamstringing the free market while redistributing wealth to Democrat constituency groups? Check. Helping the economy to actually recover? Not so much.

And then we have;

The Transportation Department and Environmental Protection Agency announced last Friday that they are considering regulating fuel mileage for vehicles even further — to an eye-popping 62 mpg by 2025 — so that CO2 emissions per mile might possibly be reduced by 3 to 6 percent. The Associated Press reports, “The government envisions gas-electric hybrids making up about half the lineup of new vehicles under the most aggressive standards, while electrics and plug-ins would comprise about 10 percent of the fleet.” These changes would add about $3,500 to the price of every vehicle, though the government claims owners would save $7,400 over the vehicle’s lifetime.

Meanwhile, in the government’s version of Wile E. Coyote trying to catch the Roadrunner, the Obama administration appears to be simultaneously trying to “stimulate” interest in higher mileage vehicles by choking off oil supplies through dragging out its offshore drilling ban, which artificially drives up gas prices. We can only hope this scheme will blow up in the their face too. Interior Secretary Ken Salazar is “reviewing” the moratorium just as Europe’s energy chief is considering putting a ban in place.

In other oil news, the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling released a report on the federal response to April’s oil spill and, not surprisingly, the administration comes in for criticism. The report said, “The federal government created the impression that it was either not fully competent to handle the spill or not fully candid with the American people about the scope of the problem.” That, in a nutshell, is the essence of Hope ‘n’ Change.


Somebody could be snooping in your trash . . . and you’re paying for it!

October 5, 2010

In a growing number of cities across the U.S., local governments are placing computer chips in recycling bins to collect data on refuse disposal, and then fining residents who don’t participate in recycling efforts and forcing others into educational programs meant to instill respect for the environment.

In at least one city, Dayton, Ohio, this invasion of your privacy is paid for by federal “Stimulus” funds.

Worse, there is evidence that recycling programs actually HARM the environment!

Dayton’s recycling subsidy is just one of thousands of examples of misspent Stimulus funds, and another piece of evidence that the Stimulus should never have passed.

So please send another letter telling Congress to rescind all remaining Stimulus funds using’s Cut Spending Campaign.

You may borrow from or copy this letter . . .

The Stimulus was advertised as putting money in “shovel-ready” projects that would create jobs. But it is a gigantic waste and you must rescind all remaining funds.

For example: $500,000 went to the city of Dayton, Ohio to snoop in people’s garbage and rearrange trash bins!

This isn’t job creation, it’s social engineering.

Dayton’s trash disposal policy is Dayton’s concern, not mine or yours. The Constitution does not authorize the federal government to give aid to states or cities, which means federal funding of this program violates the Tenth Amendment.

There are 99 similarly wasteful projects listed in a report by Sens. McCain and Coburn that you should read.

I resent my dollars paying for projects like these. Rescind the Stimulus!


You can send your letter through’s Educate the Powerful System.

How’s that stimulus working for you?

Stimulus package: humor

April 23, 2009

I got this from my better half. She received it from her father, who has an MBA. Enjoy!

Stimulus Payment Information

This year, US taxpayers will receive an Economic Stimulus
Payment. This is a very exciting new program that I will explain using the Q and
A format:
Q. What is an Economic Stimulus Payment?
A. It is money that
the federal government will send to taxpayers.
Q. Where will the government get this money?
A. From
Q. So the government is giving me back my own money?
A. Only
a smidgen.
Q. What is the purpose of this payment?
A. The plan is that
you will use the money to purchase a high-definition TV set, thus stimulating
the economy.
Q. But isn't that stimulating the economy of China ?
A. Shut

Below is some helpful advice on how to best help the US
economy by spending your stimulus check wisely:

If you spend that
money at Wal-Mart, all the money will go to China.
If you spend it on
gasoline it will go to the Arabs.
If you purchase a computer it will go to
If you purchase fruit and vegetables it will go to Mexico, Honduras,
and Guatemala (unless you buy organic).
If you buy a car it will go to
If you purchase useless crap it will go to Taiwan.
And none of it will help the American economy.
We need to keep that money here in America.
You can keep the money in America by spending it at yard sales,
going to a baseball game, or spend it on prostitutes, beer and wine (domestic
ONLY), or tattoos, since those are the only businesses still in the

An Obama assessment

March 8, 2009

An Obama assessment requires us to think broadly. Indeed, tactical, operational, and at the strategic level. The tactical we have seen through the election process, and the operational unfolds before us within the so-called “stimulus” boondoggle that is little more than payback for key sponsors of the tactical portion of the over all strategy. The election in plain language. The  operational focus needs some clarification in order to be fully understood, and I stumbled across another blog that explains it all in a manner that makes the impossible understandable.This involves virtually everything from class politics, to gun control, and beyond.

Three cheers for a job well done at Romantic Poet!

It is a rather extensive post, and well worth the time needed to read it.


February 20, 2009

Broken windows is much to mild a comment…

( – The huge economic stimulus package that President Obama signed into law Tuesday will result in “lower wages” for American workers, according to the Congressional Budget Office (CBO).

The CBO analysis, dated Feb. 11 and sent to Sen. Judd Gregg (R-N.H.), says the $787-billion plan will increase employment in the short-term, but will run up deficit spending which will “crowd out” private investment in the economy in the long-term.

The analysis concludes that the stimulus will put downward pressure on Gross Domestic Product (GDP) and wages after 2014. (The Gross Domestic Product is the total value of all goods and services produced in the United States in one year.)

Rep. Paul Ryan (R-Wis.), the ranking Republican on the House Budget Committee, said the CBO analysis underestimates the long-term economic consequences.

“Number one, the spending spends out very slowly, so it doesn’t give you much of a pop,” Ryan told “Number two, it costs much more than advertised. Number three, at the end of the day, it would have been better to do nothing for the economy given that it [the stimulus package] will reduce GDP growth and wages.”

“I find those to be very startling estimates, very startling points and facts that simply have not been reported,” said Ryan.

In its analysis, the CBO predicts that the American Recovery and Reinvestment Act will increase GDP through 2014. However, in the following years, “the legislation is estimated to reduce GDP by between 0 and 0.2 percent.”

That decrease will not come from lack of employment, which the CBO predicts will increase by between 800,000 and 2.3 million jobs in the fourth quarter of 2009 and up to 3.6 million by the fourth quarter of 2010.

“The effect on employment is never estimated to be negative, despite lower GDP in later years, because CBO expects that the U.S. labor market will be at nearly full employment in the long run,” the CBO report states.

But the analysis adds, “The reduction in GDP is therefore estimated to be reflected in lower wages rather than lower employment, as workers will be less productive because capital stock is smaller.”

A previous CBO report said that with interest on the debt, the recovery package will cost $1.1 trillion. The Feb. 11 analysis says, “To the extent that people hold their wealth as government bonds rather than in a form that can be used to finance private investment, the increased debt would tend to reduce the stock of productive private capital.”

It continues, “In economic parlance, the debt would ‘crowd out’ private investment.” The analysis further says that “crowding out is unlikely to occur in the short run under current conditions because most firms are lowering investment in response to reduced demand, which stimulus can offset in part.”

Ryan said this will keep the economy from growing.

“When you borrow, you are going out and taking money out of the private economy, which goes to bonds,” Ryan said. “So then it’s literally taken out of the private sector and brought to the public sector.”

Another way this will decrease private investment is that it will indirectly lead to higher taxes, Ryan said.

“It’s very clear that the kind of deficits this will produce will make it next to impossible for Congress to keep tax rates low,” Ryan said. “It’s very clear that this Congress is going to use the size of the stimulus and its resulting deficit to justify higher taxes in 2011, which will reduce private sector expansion and take money out of the private sector.”

When signing the bill Tuesday in Denver, President Obama hailed the legislation as the first step out of the economic recession that has faced the country for more than a year.

“What makes this recovery plan so important is not just that it will create or save three- and-a-half million jobs over the next two years, including nearly 60,000 in Colorado,” Obama said. “It’s that we are putting Americans to work doing the work that America needs done in critical areas that have been neglected for too long – work that will bring real and lasting change for generations to come.”

The White House points out that the package puts $150 billion into infrastructure improvements across the country for public transportation, upgrading the electric grid and expanding broadband. The law also allocates $19 billion to digitize health records for each American by 2014 and devotes $100 billion to renewable energy projects.

Meanwhile, Republicans in Congress have complained about various spending projects, such as $50 million for the National Endowment for the Arts, $300 million for golf carts and $8 billion for a rail line from Los Angeles to Las Vegas.

The White House estimate that the stimulus bill will create 3 to 4 million jobs comes from a transition team report completed before Obama took office and before a bill was drafted in Congress. Further, the report said there is “considerable uncertainty” about the job estimates. (See Previous Story)

The White House released a state-by-state breakdown of how many jobs would be created or saved. The breakdown showed that California would get 396,000 jobs; Florida, 206,000 jobs; Georgia, 106,000; Illinois, 148,000; Michigan, 109,000; New Jersey, 100,000; New York, 215,000; Ohio, 133,000; Pennsylvania; 143,000; and Texas, 269,000 jobs. (See White House estimates)


The Obama plan, the DNC…

February 16, 2009

I knew I had seen all this before, but I hadn’t made the connection. Having read way too much of this “stimulus” bill that has been foisted upon America I was in a daze, literally!

Then, a bolt out of the blue hit. No, it was not remembering anything from economics. Here, friends, is the Obama plan. In plain English.

1. Once you have their money, you never give it back.
2. You can’t cheat an honest customer, but it never hurts to try.
3. Never pay more for an acquisition than you have to.
4. A woman wearing clothes is like a man in the kitchen.
5. If you can’t break a contract, bend it.
6. Never allow family to stand in the way of opportunity.
7. Keep your ears open.
8. Only a fool passes up a business opportunity.
9. Opportunity plus instinct equals profit.
10. Greed is eternal.
11. Latinum isn’t the only thing that shines.
12. Anything worth doing is worth doing for money.
13. Anything worth doing is worth doing twice.
14. Anything stolen is pure profit.
15. Acting stupid is often smart.
16. A deal is a deal… until a better one comes along.
17. A contract is a contract… but only between Ferengi.
18. A Ferengi without profit is no Ferengi at all.
19. Satisfaction is not guaranteed.
20. When the customer is sweating, turn up the heat.
21. Never place friendship before profit.
22. A wise man can hear profit in the wind.
24. Latinum can’t buy happiness, but you can sure have a blast renting it.
25. There’s always a way out.
26. As the customers go, so goes the wise profiteer.
27. There’s nothing more dangerous than an honest businessman.
28. Morality is always defined by those in power.
29. When someone says “It’s not the money,” they’re lying.
30. Talk is cheap; synthehol costs money.
31. Never make fun of a Ferengi’s mother… insult something he cares about instead.
32. Be careful what you sell. It may do exactly what the customer expects.
33. It never hurts to suck up to the boss.
34. War is good for business.
35. Peace is good for business.
36. Too many Ferengi can’t laugh at themselves anymore.
39. Friendship is temporary; profit is forever.
40. She can touch your lobes but never your Latinum.
41. Profit is its own reward.
42. What’s mine is mine, and what’s yours is mine too.
43. Caressing an ear is often more forceful than pointing a weapon.
44. Never confuse wisdom with luck.
45. Ambition knows no family.
46. Make your shop easy to find.
47. Never trust anyone whose suit is nicer than your own.
48. The bigger the smile, the sharper the knife.
49. Everything is worth something to somebody.
50. Gratitude can bring on generosity.
52. Never ask when you can take.
57. Good customers are as rare as Latinum. Treasure them.
58. There is no substitute for success.
59. Free advice is seldom cheap.
60. Keep your lies consistent.
61. Never buy what can be stolen.
62. The riskier the road, the greater the profit.
65. Win or lose, there’s always Huyperian beetle snuff.
68. Ear stroking will get you anything.
69. Ferengi are not responsible for the stupidity of other races.
70. Get the money first, then let the buyers worry about collecting the merchandise.
71. There’s a customer born every minute.
72. Never trust your customers.
73. If it gets you profit, sell your own mother.
75. Home is where the heart is… but the stars are made of Latinum.
76. Every once in a while declare peace – it confuses the hell out of your enemies.
77. It’s better to swallow your pride than to lose your profit.
79. Beware of the Vulcan greed for knowledge.
82. The flimsier the product, the higher the price.
84. A friend is not a friend if he asks for a discount.
85. Never let the competition know what you’re thinking.
87. A friend in need means three times the profit.
89. Ask not what your profits can do for you, but ask what you can do for your profits.
94. Females and finances don’t mix.
95. Expand or die.
96. For every Rule, there is an equal and opposite Rule. (except when there’s not)
97. Enough… is never enough.
98. Act without delay! The sharp knife cuts quickly.
99. Trust is the biggest liability of all.
100. If they take your first offer, you either asked too little or offered too much.
101. The only value of a collectible is what you can get somebody else to pay for it.
102. Nature decays, but Latinum lasts forever.
103. Sleep can interfere with…
104. Faith moves mountains… of inventory.
105. Don’t trust anyone who trusts you.
106. There is no honor in poverty.
107. A warranty is valid only if they can find you.
109. Dignity and an empty sack is worth the sack.
111. Treat people in your debt like family… exploit them.
112. Never have sex with the boss’ sister.
113. Always have sex with the boss.
116. There’s always a catch.
119. Never judge a customer by the size of his wallet.
121. Everything is for sale, even friendship.
123. Even a blind man can recognize the glow of Latinum.
125. Count it.
127. Stay neutral in conflict so that you can sell supplies to both sides.
135. Never trust a beneficiary.
139. Wives serve. Brothers inherit.
141. Only fools pay retail.
144. There’s nothing wrong with charity… as long as it winds up in your pocket.
146. Necessity, n. The mother of invention. Profit is it’s father.
152. A lie is a way to tell the truth to someone who doesn’t know.
153. Sell the sizzle, not the steak.
162. Even in the worst of times, someone turns a profit.
169. Competition and fair play are mutually exclusive.
172. If you can sell it, don’t hesitate to steal it.
177. Know your enemies… but do business with them always.
181. Not even dishonesty can tarnish the shine of profit.
188. A fool and his money is the best customer.
189. Let others keep their reputation. You keep their money.
191. A Ferengi waits to bid until his opponents have exhausted themselves.
192. Never cheat a Klingon… unless you’re sure you can get away with it.
194. It’s always good business to know about new customers before they walk in your door.
200. If you’re going to have to endure, make yourself comfortable.
202. The justification of profit is profit.
203. New customers are like razor-backed Greeworms–They can be succulent, but sometimes they bite back!
211. Employess are the rungs on the ladder of success. Don’t hesitate to step on them.
212. Never give away for free what can be sold.
214. Never begin a business negotiation on an empty stomach.
216. Never gamble with an empath.
217. You can’t free a fish from water.
218. Sometimes what you get free costs entirely too much.
219. Always know what you’re buying.
223. Beware the man who doesn’t make time for oo-mox.
229. Latinum lasts longer than lust.
231. There’s a sucker born every minute; be sure you’re the first to find each one.
236. You can’t buy fate.
239. Never be afraid to mislabel a product.
241. Never trust a hardworking employee.
242. More is good… all is better.
255. A wife is a luxury… a smart accountant a necessity.
260. Life’s not fair. How else would you turn a profit?
261. A wealthy man can afford anything except a conscience.
262. A verbal contract isn’t worth the paper it’s written on.
263. Never allow doubt to tarnish your lust for Latinum.
265. The customer is always right… until you get their cash.
266. When in doubt, lie.
270. In business deals, a disruptor can be almost as important as a calculator.
284. Deep down everyone’s a Ferengi.
285. No good deed ever goes unpunished.
286. When Morn Leaves it’s all over.

299. Whenever you exploit someone, it never hurts to thank them. That way, it’s easier to exploit them the next time. (FAKE: Neelix made it up)
***. When no appropriate Rule applies, make one up. (The unwritten rule)

There is even plenty of wiggle room!

“Never let a serious crisis go to waste.”

February 6, 2009

“It’s the economy stupid.” Remember that? I do, and then I also remember George H.W. Bush’s statement “Read my lips, no new taxes.”

The current mess that the economy is in makes George Bush a handy whipping boy. While at the same time conveniently forgetting that it was the Congress that forced those in the market to grant loans and general credit to people that just plain were not qualified. Now that same Congress is playing what basically is the same hand in a card game called  “The House of Cards.” What follows are two similar, but different approaches for caging the tiger. While at the same time pointing out the fallacies of the Democrat proposal (s) that simply continue to hang onto the tigers tail.

First, from Mike Rosen from the Rocky Mountain News;

Here’s the opening paragraph from a New York Times story by reporter Robert Pear (please note that this is a news story in the oh-so-liberal New York Times): “The stimulus bill working its way through Congress is not just a package of spending increases and tax cuts to jolt the nation out of recession. For Democrats, it is also a tool for rewriting the social contract with the poor, the uninsured and the unemployed, in ways they have long yearned to do.”

Reinforcing that assessment is this quote from White House Chief of Staff Rahm Emanuel: “Never let a serious crisis go to waste. What I mean by that is it’s an opportunity to do things you couldn’t do before.”

It would be bad enough if HR 1, The American Recovery and Reinvestment Act of 2009 – a gargantuan $900 billion so-called economic stimulus bill – were merely an overblown accumulation of largely misdirected, politically motivated or wasteful government spending. Examples in the bill abound, like $50 million for the National Endowment for the Arts, $4 million for ACORN or $75 million to discourage cigarette smoking. But those items are nickels and dimes. Calling it “pork laden” is too kind.


Then, from CNN we have a Libertarian perspective;

Editor’s note: Jeffrey A. Miron is senior lecturer in economics at Harvard University

CAMBRIDGE, Massachusetts (CNN) — When libertarians question the merit of President Obama’s stimulus package, a frequent rejoinder is, “Well, we have to do something.” This is hardly a persuasive response. If the cure is worse than the disease, it is better to live with the disease.

In any case, libertarians do not argue for doing nothing; rather, they advocate eliminating or adjusting policies that are bad for the economy independent of the recession. Here is a stimulus package that libertarians can endorse:

Repeal the Corporate Income Tax: Repeal would spur investment, improve the transparency of corporate accounting, slash compliance costs, and avoid the distortions caused by the special-interest provisions in the tax code. Repeal can work fast, by raising companies’ share prices, increasing cash flow, and allowing corporations to lessen their need for bank lending.

hus repeal provides short-run stimulus and enhances long-run efficiency. Recent estimates suggest that tax cuts are at least as effective as spending increases in raising GDP. The adverse impact on the deficit is likely to be less than the $300-$350 billion in revenue the corporate tax takes in per year, since repeal spurs growth and therefore the revenue from other taxes.

Increase Carbon Taxes While Lowering Marginal Tax Rates: Reasonable people disagree about how much the U.S. should reduce its use of fossil fuels, but crowded highways, air pollution, and global warming all suggest that some reduction is desirable.

The effective way to accomplish this is higher gasoline or other carbon taxes, not the messy, complicated green spending in the Obama plan that will morph into pork in many cases. If higher carbon taxes are combined with lower marginal tax rates, the private sector faces better incentives on both counts. This approach avoids the higher deficits implied by Obama’s green initiatives.

Moderate the Growth of Entitlements: The elephant in the room amidst the stimulus debate is the impending imbalance in Social Security and Medicare as the baby boom generation moves into retirement. Without reductions in benefits, taxes will have to increase substantially, generating a major drag on the U.S. economy.


Both people have very defined ideas. Which beats the Democrat idea of tossing good money after bad IMO. What do you think..?

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