Today, President Barack Obama signed his $789 billion dollar recovery plan into law. Anyone who is asking, "Where are we getting this money?" The answer is, we are spending money we do not have, and increasing the deficit by more than a trillion dollars.
The European Socialist Act of 2009, says Sean Hannity, is the biggest transfer of wealth from the private sector to the public sector in American history. This bill is a pork barrel free for all. President Obama made the mistake of letting leaders of congress draft this bill. Nancy Pelosi has showed no bipartisan efforts, and it resulted in not one single Republican vote for the stimulus bill in the House. Republican opposition was because of partisanship, and unwanted massive spending programs. The minute members of congress knew that President Obama had proposed "emergency" legislation, they added pork barrel projects like no other. The Republicans did not like the massive amounts of pork, so they tried to amend the bill. Every attempt was blocked by House Democrats.
In the Senate, only three moderate Republicans voted for the massive bill. At one point the bill reached over $900 billion. Pork is much to blame for the increase in spending.
The answer is tax cuts. If people are given back a couple hundred dollars, they will put it in the bank and save it, or pay off monthly bills. The point of the stimulus is to buy new products and services, not to pay off previously purchased products. If Americans are given a steady amount of income back every month, they will be willing to go out and spend some of it on new products and services.
Spending on infrastructure is another way to stimulate the economy. The problem is, only 10% of this bill is spending on infrastructure. Most spending is unnecessary. For example, there is an earmark in this bill, containing funds designated for a high speed railway from Los Angeles to Las Vegas. A good idea, but if it is wanted by those two states, then those two states should pay for it. Not the federal government. This bill should focus on helping small businesses. They are the job creators. Congress should cut the corporate tax rate of 35%. The United States has the highest corporate tax rate in the world. The tax on business is passed down to the tax payer by higher prices on goods.
The truth of the matter is, this bill is generational theft. Children of the next generation will be paying for the money being spent now by congress. Eventually taxes will be raised, and that does not help the economy; it dampens prosperity. This stimulus bill does nothing to help the economy. Most of the money will be spent two years from now, and in two years, America will be out of its recession. The congressional budget office says this bill will do more harm than good, and Congress would have been better off doing nothing.
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