All-In on the Economy

The economic mess we are in is too important to be entrusted to any one entity, yet that's what we're getting, from the Democratic party. Repairing the American economy has global ramifications, spanning decades. The Democrats have written a single huge bill in response, now known as Spendulus, coming on the heels of a $750 Billion bank bailout package - also passed by a Democratic Congress. The latter has been ineffective in loosening the credit market even a little, which has in turn been in part responsible for the meltdown in the auto industry.

The Democrats took no responsibility for that lost $750B, instead writing a gargantuan spending proposal the likes of which has never before been even pondered.

A package as large as Spendulus means that it can only be done once. That means it must be absolutely the correct solution(s) to get the economy moving, and fast. But its size also means that it will go into effect slowly (that much money can't be given out overnight), and if it doesn't work, we won't know for years. And when we know that it doesn't work, that's that. We're busted. Broke. It's like playing a bet "all-in."

Logic would say that an entity which spent a huge amount of money and got nothing for it (the bank bailout) should not be entrusted with any other expenditures. But this is a government in the hands of the Democratic party, and there's no stopping them where spending is concerned. They listen to no one.

Spendulus must be scaled back. Doing so will do several things, the most important of which is that it will allow room for error. If the Spendulus were "only" a few billion (I can't believe I'm saying that about such a lot of money), and directed to only do one thing, like fix the housing market, then if it didn't work it could be used as something from which to learn, and another effort could be mounted, perhaps toward business and manufacturing. It could also be effected and evaluated much, much faster.

Spendulus is a monstrosity in excess of $800 Billion created by politicians who, in spectacularly demonstrated fashion, know nothing about finance. Plus, it's is a one-shot deal. If it doesn't work, that's it.

Smoot-Hawley had nothing on this. Say hello to worldwide depression.