Pork or Stimulus? Which is it?
I suppose what will finally be passed will be a little of both. What I am most fearful of is the corruption that will “follow the money” through the system. Does the fed ever administrate a massive spending bill without 30-40% waste? Historically, no they do not. Hands are held out looking for favors; old cronies “call in markers”. Relatives get huge contracts, ghost businesses are quickly established to divert the money flows, etc, etc…
I also hope this works better than history indicates. This kind of stimulus by FDR didn’t get us out of the Great Depression, and more recently this same kind of program kept Japan in recession for nearly 10 years. As a family, you cannot spend yourself out of debt. A nation can’t do that either. Business growth, stimulated by a consumer or a business need creates a healthy economy. Governments do not always induce healthy economies. Private enterprise is what historically creates lasting jobs. Build a better mousetrap, show a business how to be more efficient, introduce new technologies – that is what makes businesses grow. Bridges, and roads may indeed need to be repaired – BUT that is not the solution. It is a temporary solution/fix to a longer term problem. Actually, recessions are foregone conclusions, just as economic growth is. The cycles are inevitable. We only hope our friends in DC enable a quick recovery, and do not prolong the slowing economic cycle.
Tags: pork barrel, stimulus package
