Porkulus

In President Obama’s uninspiring Inaugural address he made it a point to stress bi-partisanship and, in reference to gloomy economic prospects said this, “We have chosen hope over fear.”

Whenever any politician speaks (and, sorry to say I include Obama as just another politician), you’d be foolish to accept the words have any meaning until they’ve been run through the reality-grinder. Because the very next week, in explaining why we need to spend another $800 billion after the first $850 billion had no positive effect, Obama was quoted as saying, "A failure to act, and act now, will turn crisis into a catastrophe." So much for hope over fear.

Bi-partisanship? Republicans, except Northeast whackjobs, weren't even invited to discuss the content of the latest spending spree.

It’s words like "catastrophe" that actually turn crisis into a catastrophe. Is there any evidence out there that indicates successful problem-solving by Congress when in the midst of crisis? We end up with quick fixes, pork-barrel spending to move reluctant legislators and a lot of proud back-slapping that the Union has been saved by their thoughtful and quick action. The problem is, it’s doubtful any of the owners of the slapped backs completely read what in the 1,000 pages they voted for. God forbid anyone have a chance to read it in its entirety – especially those prone to leap from buildings from such bad news.

There is a delicious irony that there are hearings on financial Ponzi Schemes in one part of the Capitol while Congress creates the world’s largest scam a few hearing rooms down the hall. The difference in the hearings is the victims of the Congressional scheme will be future generations saddled with debt that will bury them in red ink their entire lives.

This isn’t to say Obama is solely to blame (although I want to remember all the headlines referring to this as Obama’s stimulus bill). The new president is just another political snake oil salesman peddling the same cure Bush and his team offered just six months ago. In case you’ve forgotten about the purpose of the first $700 billion – with the added $150 billion Congressional surcharge – was to stabilize the financial services industry. Anyone out there try to get a loan for anything lately? Anyone see any difference before and after the government threw our money at the problem with little debate and little open information?

When the two “stimulus” packages are added together the cost to benefit ratio to the taxpayer is criminal. Obama’s stimulus promises tax breaks that work out to $13 per week and drop to $8 per week next year. By contrast, if they just gave each and every American a share of both programs, we’d each receive almost $7,000. That’s $28,000 for my direct family alone. And, what would we do with that money? Who knows? Maybe spend it, creating jobs, maybe save it, making banks more liquid and secure, maybe invest it, taking foreclosed properties off the books or save sagging stock values, maybe give it to charity, creating opportunity to others less fortunate. Neither stimulus bill does anything close to what the average American would do if given that money.

Of course when you get to the bottom line, spending priorities is far from the main point. Congress, which has only one trained economist among members, needs to remember that the money they spend has to come from somewhere. They either have to print it, borrow it from China or take it from taxpayers. Either way, it sure looks like we lose.

Pelosi: Not The Brightest Speaker We've Had

Imagine if a republican had said this at a press conference. Now, try to find this comment in any major newspaper.