Real stimulus begins at home, not at Smith Barney or Merrill Lynch
I’ve refrained from commenting on politics because this is a business publication, but since the new administration took office politicians are doing their best to force their way into business I feel free to comment on government.
In just a few short months, beginning with the Bush administration’s bailout of banks and Wall Street, the country has taken major steps toward socialism.
Since the Obama administration took office the change has gone from baby steps to giant leaps.
Let us begin with the so called “Economic Recovery Act.” It should have been called the “Government Pork Act.” Of the $787 billion a mere $750 million was set aside for the Small Business Administration to help small businesses. Almost all the rest of the $786.25 billion goes to government.
Some will go to building “green” energy. Some will go to the performing arts.
“All Business” magazine headlined a story “Recovery Act? Buy a Powerball ticket instead.” And that is about the size of it.
Do the jet-setting, limo-riding big spenders in Washington really think they’re doing something to help the 12.5 million unemployed in the nation and the 1.2 million homeowners in various states of foreclosure?
The whole thing is a fiasco pushed through by a bunch of politicians who never had a real job in their life and are treated like princes and princesses.
Try asking them to live on wages that are below median income. See how many of them would flee when faced with living on $46,326 a year for their household. Every one of the traitors would be in private industry in months, if not weeks.
Only in it for the money and the perks
Meanwhile, half of the United States lives on $46,326 per household a year or less.
We’re going to get a lot of new roads, fixed bridges and other government infrastructure out of this economic stimulus. What we won’t get is economic stimulus.
A common sense government would have done this. We’re going to give away $787 billion. We will give it to the people who need it. Since half the households in the nation live on $46,326 a year or less before taxes we are going to give it those people because they will spend it. That will stimulate the economy because it will increase demand for goods and services dramatically.
A little math, using the latest U.S. Census statistics, came up with this result. Based on the average household having four people there are 113,074,668 people living below median income. Since 10 percent (actually 11.1) are citizens of foreign countries we won’t include them. That leaves 101,767,201 people in households earning below median income.
We will give every one of those people $7,733 - for a family of four that will come to $30,902.
That would stimulate the economy
In Mohave County it would go to more than half the households. It would be about 25,000 households getting $30,902 each. The economic stimulus in Mohave County would be about $773.3 million. Far more than the county will see from the federal government.
That influx of funds would enable most people facing foreclosure to avert it. It would allow many unemployed to go into business for themselves. It would also solve the deficits of government in Lake Havasu City, Bullhead City, Kingman and the county.
Statewide the number would have been in the neighborhood of $10.8 billion. Sales tax on 10.8 billion would have taken care of almost all of the state’s $1 billion deficit that is projected for the year. A slight amount of budget cutting would have done the rest. Instead Gov. Jan Brewer (a Democrat with an R behind her name) is considering raising taxes by a billion a year for next year and perhaps the next several years.
The federal government could have benefited the people and resolved the economic crisis in one fell swoop.
Instead it took care of big business and big government.
The rich get richer, unfortunately the middle class becomes the poor
The rich will get richer while the middle class shrinks on a daily basis and the poor become poorer.
But, government on all levels, federal, state, county and city will benefit.
Government is growing at amazing rates. It is rapidly stripping control of every aspect of life and business away.
The movement toward a European-style state is flying forward.
Friday the next round was fired in that people who can’t afford their mortgage can go to bankruptcy court and have court-ordered lowered payments and lowered interest. That will do a lot of good for the stressed banking system. It will also ruin the credit of the people who utilize the system. And, it will probably only delay ultimately losing the house to foreclosure to the vast majority of people who do it. And, their credit will be shot when they have no place to live – that’s a big help.
Did I mention the bankruptcy attorneys are all for this. They stand to make a fortune. (See U.S. passage of mortgage foreclosure relief praised by bankruptcy attorneys on this site.)
What they will do for us next
On Monday, Obama plans to force doctors and nurses who do not want to participate in abortions, sterilizations and other optional surgeries to lose legal protection for refusing to perform operations that go contrary to their conscience.
Oh boy, are we ever moving forward.
Did I mention Obama wants to renew the assault weapons ban and shut down the whole industry. I wonder how many people that will put in the unemployment lines.
Or, that he plans to make it harder and more expensive to produce electricity and hike your monthly utility bill.
Or, that you are going to have to buy those more expensive new light bulbs and have to pay a hazardous materials fee every time you want to throw a light bulb away (HazMat fee is $30.)
Did I mention the Senate voted on Friday to fund government-mandated sterilizations and abortions in foreign countries? Your tax dollars are going to go to China and a host of African nations to fund government-mandated sterilizations and abortions. Good stuff, huh?
Yup, the federal government is doing us a lot of favors.
At least the paper is pretty
If you have an AIG annuity you are still getting payments – for now.
If you invested in CitiGroup you still have stock. The paper is worth more than the stock, but you still have stock.
Your 401K is worth less than half of what it was a year ago, but you still have it.
But, how many dollars are in your pocket?
How many people who never set foot in WalMart are regulars now?
When you want to ask for help from government, don't bother - you won't get any
A few decades ago I owned a small business. I was injured in an accident and couldn’t walk for nearly six months. I petitioned ever ygovernment agency I could find for any sort of help – even just advice. I was laughed out of every one.
If you thought you and your money worked for the government before - you ain’t seen nothin’ yet!
All hail King Obama! And kneel before his many princes and princesses!
This is the first of an ongoing series criticizing government and its arrogant attitude toward the people who are forced to support it. In next few weeks the series will focus on the foibles of Mohave County government and city governments in Bullhead City, Kingman and Lake Havasu City. In the very near future a new category will be added to this site to deal with politics. The federal government as well as the state, county and local governments will be closely monitored under that category.
Sun 08 Mar 2009 21:32:14 CDT
The money is handed from the feds to the state who remove half for their shortfalls, then to the county who removes half of that for their shortfalls, then to the cities, schools and every bureaucratic entity there is all doing the same thing until there's nothing left.
That's why the whole thing is set for failure from the start.