Talking about the Stimulus package and how ridiculous some people are being. Ill start with explaining the situation to those who don't fully understand whats going on.
In 1999 Clinton made a huge mistake, he decided to repeal the Glass-Steagall Act. This was protection set up for banks after the great depression that basically made it so banks were separated by different industry. Commercial banks and investment banks were separate entities. This allowed for incredibly risky behavior and higher profits. However while risk is good for allowing for much higher profit, it is never appropriate to allow certain sectors of the economy to do this. For instance with the commercial banks which are central for a healthy economy to extend financing to businesses, you shouldn't allow them to take on this ridiculously risky behavior because they in essence can not go bankrupt without having a domino effect on the economy, these pillars of the economy needed to be regulated and needed to be risk averse because if they fell the burden fell on the taxpayers, and that's what happened.
You cant argue that the Bailout was a mistake, it was not a decision it was a consequence. George W. Bush should have seen the warning signs and the goddamn SEC should have done their job, but pretty much everybody was either incompetent or corrupt. So the Republicans hate government spending, right? Except wait, how much debt did the Bush administration pile onto "the next generation" through tax cuts to the rich and two failed wars? Trillions?! ouch. So even a government controlled by the Republicans entirely (6 years of the Bush administration the Congress belonged to the Republicans as well) managed to spend and spend and spend and sunk the surplus created by the Democrats under Clinton into a dismal deficit. So remember this is important to remember when the Republicans tell you that Obama is spending too much, the truth of the matter is that the Republicans spent like crazy, whether directly through two expensive and unnecessary wars, or indirectly by giving tax cuts to corporations who did not need them at all. The neo-con mindset is that economics are simple, lower taxes and the economy does better.. however this isn't always true. The economy was still booming from the Clinton administration, tax cuts were simply not necessary and in essence really sleazy when you consider the connections that the Bush administration had with big corporations. Consider the family friendship between the Bush family and Ken Lay the CEO of Enron (before he died) this is just one example of the sleazy influences that the Republicans had to reduce taxes and if you think it was to make the economy grow you are simply wrong, it was to distribute wealth further to the rich because those were the people funding the Republicans.
So, tax cuts were proven to not be the best way to fuel an economy. In fact tax cuts when an economy is booming is just retarded, what happened in the last 8 years was complete and utter negligence of social programs and funding for the sciences. So we end up with a crisis on all front by the time the Republicans leave, Infrastructure in the country has been underfunded, the private medicare system is corrupt and costing Americans more than a public system would, and the American school system became a worldwide joke as underfunding for the public system created lifelong roadblocks for poor individuals to get educated and therefor contribute more to the economy.
So what is the Stimulus package? its a huge spending budget on a myriad of all the things that went underfunded under Bush really, none of it went to give money to wallstreet or give it away to people like Bush did in his feeble attempts to help the economy (Stimulus check, remember?!), no this is money that is being spent on things that at the same time are the infrastructure for the country and absolutely imperative, and at the same time this spending would be perfectly timed to offset the huge unemployment that the states currently is facing by creating thousands of government jobs. I can understand the opposition, they are afraid of a return to Keynesian government. The use of the word socialism is simply a slur, used inappropriately to cause outrage in the republican base. What the real outrage is, for people who believe the market should stand up on its own, is the fact that the market has collapsed so significantly that now the government has to step in to create jobs and stimulate the economy. Government spending is really one of three options that have been presented.
1) The current option, increase government spending really quickly to build infrastructure and at the same time keep people working.
2) The republican option, more tax cuts. Yes that's their idea, the same tax cuts that reduced the surpluses to a deficit under strong economic conditions, do that.. but more!
3) Let the economy collapse.
It's easy to criticize the Obama administration for picking number 1, however nobody has come up with a better solution and time is of the essence. This mess is not Obama's fault, hes just the one fixing it.. we all knew that during elections but some Republican supporters have lost their mind (SilkWizard) and forgot that the current crisis is the result of the severe transition towards Republican Ideologies, Ideologies that have proven to not work in the real world. Here's the problem now, the republicans are being so partisan that they are slowing down the effectiveness of congress and in extension the government. The sooner something is done to get people working again, the better off we all are. However the republicans want Obama to fail, they are trying to drag their heels during the entire process even though if Obama fails so does the entire country. It is unethical and just plain awful. It is hard to watch how the "patriotic" party would sooner spitefully collapse the American economy than participate with the government that was elected via democratic process.
Shame on you Republican party, everybody is in this together, this isn't a sporting event of Democrats vs Republicans, this is the well being of the country at stake.
Copyright © 2015 BYOND. All rights reserved.