2 Reasons Why The STIMULUS WON’T WORK…wanna know?
01.20.10
The Global Marketplace.
First off, do you agree with me that we have a global marketplace? If you do, read on. If not, go to economics 101 and read the first sentence again. Stimulus of a country’s economy does not work in a global marketplace. The reason being: It is IMPOSSIBLE to know where all the money is going. Here’s an example. Who makes the condoms Nancy Pelosi wants?
While the company may be BASED in America, the raw materials to make the product come from all over the world. The plastic made for the condom probably goes to China, the oil used to transport it goes to the middle east, the lubricant that goes in it goes to Europe…and so on.
What about reworking the Washington Mall? Well, if any bricks are used, they probably come from South America. The workers might also come from South America and will send their paychecks back to their homes. Stimulus, while good in writing, is not very effective to get the economy of a single country back on its feet because you simply do not know where the money is going. Which leads me to my next reason:
You Can’t Make Value from Nothing.
China is not going to lend us a trillion dollars. They have their own problems to worry about just as we do. This money is going to be printed, and according to the laws of supply and demand, that means since the supply of the American Dollar will go up, the demand (value) of the American Dollar will go down. That means the dollar you have right now will be worth significantly less after the stimulus bill. I suggest you invest in gold.
This means that all the government will be doing is taking value from dollar, and spending the value lost on this stimulus bill. It will essentially be a stealth tax on every single American.
This bill will not succeed, and if Obama approves it…it could lead us into a deeper recession and possibly a depression.
Not from you. Thanks for the baseless rant… who would take a guy named “koolaid” seriously?
if we stimulate our economy then we can buy more in the global market place, especially in developing places like china that are experiencing groth, if we don’t get in there because we don’t grow our own demand for high goods and Germany or Japan does then shame on you for ripping off Ayn Rand and trying to apply it to reality and there for blocking our future growth.
things like oil are priced in us dollars that has kept us afloat, if we do not fix the demand problem (which is spending) then we will be in deep trouble because things on the international market will be priced in something else.
the granite fr the washington mall came from New Hampshire.
China would want to lend the USA some money b/c they have no one to sell their crap to if the west isn’t buying it.
>>> Wild Applause!!! <<<
Post of the day!
I suggest not picking spending projects.
Truth is, neither major spending nor heavy tax cuts work.
Not a question, but uhm..
Nancy Pelosi doesn’t use condoms becuase I don’t think anything gets shoved up her…
Never mind.
True…it will be a failure. Never has it been done where a country can throw money at their own economy and make it increase. This is pay back so to speak…pay the ones who backed me to power…if the economy overcomes … then I was right. If it fails…it’s either blame Bush or Copngress waited until it was too late!
I AGREE!
My husband is in the Financial industry and he has been saying the same thing.
Yes, it’s good time to buy gold and silver because the dollar is gonna be in the crapper very soon.
Did you see the Dow plummeting under 8000 today? See, this is just a beginning.
The stupid Democrats are gonna waste billions of hard-earned taxpayers dollars. and saddle our children with a staggering debt. This is unexceptable. We shouldn’t do this for our children.
I think we should let big business figure it out.