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''Doing too little or nothing at all will result in an even greater deficit of jobs, incomes and confidence. That is a deficit that could turn a crisis into a catastrophe, and I refuse to let that happen.'' - Barack Obama, urging passage of his $787 stimulus package
In October 2007, the Dow Jones Industrial Average hit an all-time high, over 14,000. From there, the stock market began a year-long slide. By October 2008, the Dow was standing at just over 8,400. For the last four months, the stock market has remained relatively stable, hovering between 7,800 and 9,000. (link) Has the stock market bottomed out already ?
The non-partisan Congressional Budget Office (CBO) estimates the recession will be over at the end of 2009 after the housing market bottoms out and credit begins to flow again, with slow recovery occurring after that. This estimate does not take into account Obama's stimulus package, TARP II, TARP III, or any governmental policy. The CBO determined the recovery will happen on it's own. The CBO has also indicated that Obama's $1 trillion stimulus package will actually harm the economy more than if Obama did nothing, especially over the long haul.
The CBO estimates that GDP will drop by $63 billion in 2009, and rise in 2010 and afterward. Obama is proposing a $2.5-3 trillion fix (stimulus + TARP) for a $63 billion problem ???
The CBO estimates that unemployment, which currently stands at 7.6%, will reach 8.3% in 2009, and peak at 9.0% in 2010 before it starts falling as recovery takes place.
At the House Financial Services Committee's hearings with the banking CEO's last week, every one of the 8 CEO's present said they would not need any more bailout funds. A few even said they didn't need the original bailout funds. All said they'd be able to pay back the funds they received in about 3 years or less. All said they had plenty of money to lend, and they want to lend it (of course they do, that's how banks make a profit).
The bottom line is, the economy will recover from this recession, just as it has recovered from every other recession.
This begs the question, why did we just spend $1 trillion ($787 billion + interest) on a stimulus package, and why are we about to spend $1.5-2 trillion more in TARP programs ? Obama's "fix" is far worse than the problem we face going forward. The CBO says that while Obama's big spending will help some in the short term (for a trillion bucks, it better), in the long term it will increase government so much as to crowd out private investment, leading to a shrinking GDP. It will also vastly increase the interest we pay on the debt, to over $500 billion per year, which is taxpayer revenue that goes right down the drain instead of to vital government needs and services.
The Washington Post reports that only $107 billion of Obama's stimulus package will be spent in 2009, when it will be needed most. The bulk will be spent later, in other words, AFTER THE ECONOMY STARTS TO RECOVER. Obama's tax cuts come out to $13 per week per taxpayer, a paltry sum. President Bush already tried the same thing last fall with his stimulus package, and it didn't make a dent in our economic woes. There are no business tax cuts or incentives for investment in Obama's stimulus plan, such as a capital gains cut, that might speed up the recovery.
What this all makes clear is that Obama's "stimulus" package doesn't provide much of a stimulus, and there was no need to spend so much money. Instead, what Obama has put forth is an economic Trojan Horse, that increases the power of big government at the expense of the private sector. It's also a handout to Democratic constituencies, like the unions (all infrastructure and education spending will solely benefit the unions), and the environmental lobby, which will reap great rewards. Others who benefit the most are state governments. Most of those "saved" jobs will be government jobs. In fact, government is just about the only industry that hasn't laid people off so far. The government is recession-proof, because it just steals more money from you, Mr. and Mrs. Taxpayer. That's what Obama's stimulus plan does.
In the end, taxes will have to be increased drastically to pay for all this. The dollar will be worth less, and your standard of living will be forced to drop, as we sink into the quagmire of socialism. The left is already calling for nationalization of health care and the financial system. That's what we will ultimately reap from this much governmental irresponsibility, and every bit of it is PLANNED, because Big Brother wants control over your little lives. You children cannot be trusted to handle your own affairs, your overlords must handle them for you. The worst part of all is, the majority of you seem willing to go along with it and become slaves, as long as your government gives you a food stamp, a hovel to live in, and enough cash for tv and beer. It's pathetic. We have a little adversity, then Obama scares you into thinking the world's about to end, and you're ready to hand over your rights in a New York minute, because you are actually stupid enough to think Obama is going to give you a bunch of "free stuff." (Hint - there's no such thing). You even celebrate it. Maybe you are children. You deserve what you're about to get. Hope and change, my fat butt. What a disgrace this is.
"Give me liberty, or give me death" - Patrick Henry, 1775.