So-Called Stimulus Package
So, after passing the $700 billion bailout there is now an $800 billion "Stimulus Package" in the works. How much is the $800 billion package going to cost? ...$2 trillion. Looks like the government can't help but bloat everything that comes their way! Let's take a look at the types of things this bill is meant to stimulate.
There is $4 billion ear marked as "Neighborhood Stabilization," how's that for government speak? What does that even mean? The legislation is similar to legislation from last year that directed the Department of Housing and Urban Development to disperse $3.9 billion to cities and states for buying and refurbishing abandoned and foreclosed properties. A crucial change this time is that nonprofits would be allowed to compete against local governments for money through a process designed by HUD instead of having HUD funds distributed by HUD to cities and states. Some people are afraid that the money could go to organizations like the Association of Community Organizations for Reform Now (ACORN) the same group that was paying people to register to vote multiple times in the last election!
Another $200 million is set aside to refurbish the National Mall. That is the area of Washington DC where the presidential inauguration took place. This may create a small number of jobs over a very short period of time, but in the long run it does absolutely nothing to stimulate the economic situation. It's a short-term fix to a long-term problem.
I think we need to stop all of this government intervention and let the market take care of itself. We continue pumping money that we don't have into a system that is fundamentally flawed to begin with hoping that will fix something when all it really does is let the whole mess limp along a little longer. If we stop pumping in money then the companies that are having the problem will either clean up their act or go out of business to make room for new businesses.