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  • House Democrats Double Down With Another Stimulus

    Albert Einstein famously defined insanity as “doing the same thing over and over again and expecting different results.” So after a $787 billion stimulus that was supposed to create (not merely save) 3.3 million net jobs but instead saw 3.4 million net jobs lost, House Democrats this week have doubled down by (barely) passing yet another $150 billion stimulus bill. Of course, if deficit-spending created jobs and growth, then the staggering $1.4 trillion deficit in 2009 would have already overheated the economy.

    The new stimulus bill is offensive on a number of levels. Most of it’s provisions — such as highways ($28 billion) mass transit & Amtrak ($9 billion), education jobs funds ($38 billion) — we’re already funded by the last stimulus, only a quarter of which has been spent thus far. Why not just move that spending up? These plus the extension of other stimulus provisions like the state Medicaid bailout and COBRA health benefits further make a mockery out of the Democrats’ guarantee that the $787 billion stimulus represented one-time spending that would not be extended.

    President Obama is employing the gimmick of “offsetting” some of this spending with TARP savings. It’s a sham. Imagine a family secures a new credit card with a $10,000 credit limit to pay for emergency car repairs. The final repair bill comes to $8,000, so the family charges the final $2,000 for a new television while arguing that it is from car repair “savings” and thus will not add to their household debt. The Obama administration is clearly adding $150 billion that would not otherwise have been spent and added to the debt, even as they play accounting games.

    The American people understand that stimulus spending does not work. Rasmussen reports that 62 percent of Americans oppose the new stimulus, and 51 percent agree that more jobs would be created by repealing what’s left of the $787 billion monstrosity. Even Council of Economic Advisers Chairwoman Christina Romer has written that tax relief is a much more effective stimulus than new spending. However, by passing a new stimulus bill every few months, the Obama White House is setting itself up to claim credit whenever the recession inevitably ends. The question is how much debt they will accumulate in the meantime.

    Cross-posted
    at The Corner.

    Posted in Ongoing Priorities [slideshow_deploy]

    9 Responses to House Democrats Double Down With Another Stimulus

    1. Stirling, Huntingdon says:

      Well this administration is consistant in how they deal with the economy, they throw more good money after bad ideas. This is like a parrent who just wants to appease their children, but not deal with the root of the problem. The best parrents are the ones that may not be liked by their kids when they are young (because they dont give them everything), but are apreciated later in life for the tough decisions they made when it was important. I see this administration as not mature enough, or willing to do the right thing, but is willing to "spoil" whoever they need to in order to get what "they" want.

    2. J.C. Hughes, Texas says:

      Brian hit the proverbial nail dead on. My exact thoughts on congress' healthcare bill. Government run (socialized) medicine has been proven time and again to offer very little in return for the massive tax dollars pumped in. This wasteful truth contradicts leftist propaganda. Lets mold reality to fit the left's fictional world. Such fact twisting is not far removed from Hitler's wished for pure Aryan society. This statement is not intended as an insult but rather a warning. Our founding fathers fully understood the human creature. Yes, times have changed but people do not. Therein is the genius of America's written constitution. Our founders' gift to help guide future generations toward an independent, productive and prosperous future.

    3. Scott Trupp says:

      2010 will be the year to vote out some of these out of control spenders. North Dakota is represented by a man named Byron Dorgan who asks how high when Premier Obama tells him to jump. It has to end. Spend like crazy and tax the next four generations into oblivion. North Dakota is running a Fargo businessman named Paul Sorum this time around and he's really rising in the polls. He's fiscally responsible and he's not afraid of the tax and spend crazies from both sides of the aisle. Let's put Paul Sorum into the United States Senate. I'm voting for him and urge others to do so as well. Dorganomics simply isn't working.

    4. Kevin H, Glen Burnie says:

      Non-partisan CBO reports that through October of this year, up to 1.6 million jobs were preserved or created. November showed only 11,000 jobs lost – compared to 740,000 jobs lost under last month of Bush administration. There's been a nearly 60% increase in the DOW since the recovery was passed.

      Tax cuts have made up abotu 50% of the recovery dollars that have gone out.

      It shocks me that you would be against aid to states…C'Mon Brian – aren't you supposed to be the tax expert? The states have a balanced budget requirement. If the Fed Gov't doesn't provide any aid, they will have to make cuts to schools, police, fire, health and other critical services OR raise taxes to make up the shortfalls. It was due to the devestating policies of the GOP over the past 8 years and their utter lack of financial responsibility.

      It was the right that did away with pay-as-you-go and then passed TWO stimulus packages (2001 and 2003 – which by the way was twice as costly as the Obama recovery package) made up of tax cuts to the rich and passed the 2003 Medicare bill – all of these gigantic bills were unpaid for, since the Republican congress decided to get rid of pay-go. And with takign the big surplus and creating an even bigger deficit, putting the economy on such a terrible track that revenues from payroll, income, property and sales all plummeted, which has hit the states awfully hard.

      To say stimulus spending does not work is absolutely ridiculus – all ideology and no fact. McCain's own chief economist, Mark Zandi, would tell you how wrong you are and how well the stimulus has worked. I cannot imagine how dire things would be if there was no recovery package.

      We all saw how well your right wing policies worked over from 2001 through 2008. It put us in the worst economic situation since the great depression. So Brian, you quote Einstein again – Albert Einstein famously defined insanity as “doing the same thing over and over again and expecting different results.” You want to keep doing what got us in this horrible mess in the first place.

    5. Freedom of Speech, T says:

      The only thing being stimulated is government growth at the expense of the private sector and thus – millions of jobs.

      As long as these people follow Keynsian Economics we will be in trouble in the short term, with catastrophe and unpayable debt in the long term.

      Wonder what the FINAL tax rates will be for ALL Americans?

      Congressional members of both parties better put a stop to this before we are crippled for generations.

    6. Pingback: Welcome to America, Land of the Less Free? | Conservative Principles Now

    7. Pingback: Morning Bell: A No-Cost Stimulus That Can Create Real Jobs for the American People | The Foundry: Conservative Policy News.

    8. Pingback: Morning Bell: A No-Cost Stimulus That Can Create Real Jobs for the American People | Step Down Obama

    9. Pingback: Morning Bell: A No-Cost Stimulus That Can Create Real Jobs for the American People « Thoughts Of A Conservative Christian

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