Congress recently authorized a $787 billion stimulus package. The package, amongst other things, dedicates $116.2 billion to individual tax cuts, $87.1 billion to fund State portions of Medicare, $69.8 billion to forgiving the alternative minimum tax, $53.6 billion to funding teacher salaries and job training, $35.8 billion to unemployment benefits, $27.5 billion to transportation-based infrastructure projects, and $20.9 billion to increased food assistance. All of these causes are worthy and might actually provide us with the money, aid, and opportunities they need to get back onto our feet. Even though I do not blame Congress for passing the $787 billion stimulus package – given Obama’s victory, the social mandate granted Congress by the recent round of overwhelming Democratic victories, and the fact that without sudden and massive action every Congressman in America would lose his or her job at the next election if Congress did not act – I do not like its implications.
To date, Congress has authorized more bailout and stimulus packages than FDR created aid agencies during the New Deal. Each of these packages has leveraged our future to the hilt. While Democrats are not quick to mention this, Americans have a dark future ahead when it comes to debt. Before the economic crisis each of us and our children were responsible covering $30,000 of the national debt at some point in the future (most likely to China, yay!). It now hurts even more to think that we will be paying back every cent borrowed from ourselves this year at some indefinite point down the road. If such borrowing helped, it might be justified. However, I question its efficacy in the face of continual bank failures and irresponsibility (that’s right we’re about to grant AIG another “loan”) and the practices that the bailout and stimulus packages attempt to inspire.
Take these facts into account. The current crisis began because greed blinded the housing market and just like Gloucester, it tried to throw itself off the proverbial Cliffs of Dover and drown in an English Channel of bottomless, never-ending profits. Unfortunately, unlike Gloucester, no one was there to stop it. It recklessly plunged in head first and found that the waters were not a place of sanctuary. Instead, they offered only pain, suffering, and the heart of the American economy on a platter. The point? We’re in this mess because we’re greedy.
Next, isn’t it grand that 8% of the mortgage-bound population is causing the other 92% of the mortgage-bound population to suffer so greatly? That’s right. Of all the mortgages in America, only 8% are poisonous. This means that 92% of Americans with mortgages, those folks who work hard and pay on time, not only have to cover for the other 8% but now might lose their own homes because their brokers are desperate and are calling in debts. Whatever happened to the promise of individually pursuing happiness? When did I start needing to cover for the errant and blindingly dumb mistakes of others? I know that may sound harsh and I apologize, but I’m pretty sure that I hit the nail on the head.
Finally, allow me to provide an example of the brilliance of the government’s recent response to the economic crisis. According to a really, really smart accountant that I know, there is a bailout program that offers first time home buyers assistance with their downpayments so that they can buy homes. Instead of giving them money to do this or to secure a low interest rate, the government is offering them this money and forcing them to pay it back within 15 years. So what exactly does this encourage? Let me tell you. It will go something like this:
Homebuyer (Husband): Hey honey, I heard that Barack Obama is giving out money to buy a new home. You’ve always wanted a house with a yard and a huge lawn in the suburbs! Let’s do it!
Homebuyer (Wife): Is he really? What a great man! I knew Barack would pay for our home! That’s why I voted for him! Do you think we could move into a neighborhood where everyone makes 100% more than we do? I’ve heard Greenwich is gorgeous this time of year!
Homebuyer (Husband): Of course! Because if something happens and we can’t pay our mortgage even after the subsidy-thingy, Barack will pay for that too!
Homebuyer (Wife): Booyah! Let’s stop by the Honda store and get a Prius too while we’re on the way! Do you have the new Britney Spears album? I love her! Womanizer, womanizer…
Sorry about the satire but it seems to me as if America, Congress, and the Executive Branch are either (a) ignoring or (b) missing the implications of their actions. While throwing money at the economic crisis might feel good and generate massive “public” support, it will ultimately saddle us with more debt that we can handle. This short-sightedness rankles me because it ignores the fact that we put ourselves into this position. Unregulated banking and business transactions (imposed by Clinton by the way) undercut the stability of our markets and Americans intent on aggrandizing their collective wealth closed their eyes, turned off their brains, and permitted this to happen. If we took more individual responsibility for our personal finances, avoided buying things we could not afford, and invested wisely, maybe we wouldn’t be in meltdown mode right now.
Unfortunately, it is human nature to naively and foolishly disengage from reality. Americans no longer take pride in participating in the political or economic process that is America. Instead, we sit idly by worried only about feeling good, looking good, and our next material acquisition. If we reengaged with the world around us and shrugged off our intellectual lethargy we might have stopped ourselves from going King Midas. Oh well. Maybe next time.
To date, Congress has authorized more bailout and stimulus packages than FDR created aid agencies during the New Deal. Each of these packages has leveraged our future to the hilt. While Democrats are not quick to mention this, Americans have a dark future ahead when it comes to debt. Before the economic crisis each of us and our children were responsible covering $30,000 of the national debt at some point in the future (most likely to China, yay!). It now hurts even more to think that we will be paying back every cent borrowed from ourselves this year at some indefinite point down the road. If such borrowing helped, it might be justified. However, I question its efficacy in the face of continual bank failures and irresponsibility (that’s right we’re about to grant AIG another “loan”) and the practices that the bailout and stimulus packages attempt to inspire.
Take these facts into account. The current crisis began because greed blinded the housing market and just like Gloucester, it tried to throw itself off the proverbial Cliffs of Dover and drown in an English Channel of bottomless, never-ending profits. Unfortunately, unlike Gloucester, no one was there to stop it. It recklessly plunged in head first and found that the waters were not a place of sanctuary. Instead, they offered only pain, suffering, and the heart of the American economy on a platter. The point? We’re in this mess because we’re greedy.
Next, isn’t it grand that 8% of the mortgage-bound population is causing the other 92% of the mortgage-bound population to suffer so greatly? That’s right. Of all the mortgages in America, only 8% are poisonous. This means that 92% of Americans with mortgages, those folks who work hard and pay on time, not only have to cover for the other 8% but now might lose their own homes because their brokers are desperate and are calling in debts. Whatever happened to the promise of individually pursuing happiness? When did I start needing to cover for the errant and blindingly dumb mistakes of others? I know that may sound harsh and I apologize, but I’m pretty sure that I hit the nail on the head.
Finally, allow me to provide an example of the brilliance of the government’s recent response to the economic crisis. According to a really, really smart accountant that I know, there is a bailout program that offers first time home buyers assistance with their downpayments so that they can buy homes. Instead of giving them money to do this or to secure a low interest rate, the government is offering them this money and forcing them to pay it back within 15 years. So what exactly does this encourage? Let me tell you. It will go something like this:
Homebuyer (Husband): Hey honey, I heard that Barack Obama is giving out money to buy a new home. You’ve always wanted a house with a yard and a huge lawn in the suburbs! Let’s do it!
Homebuyer (Wife): Is he really? What a great man! I knew Barack would pay for our home! That’s why I voted for him! Do you think we could move into a neighborhood where everyone makes 100% more than we do? I’ve heard Greenwich is gorgeous this time of year!
Homebuyer (Husband): Of course! Because if something happens and we can’t pay our mortgage even after the subsidy-thingy, Barack will pay for that too!
Homebuyer (Wife): Booyah! Let’s stop by the Honda store and get a Prius too while we’re on the way! Do you have the new Britney Spears album? I love her! Womanizer, womanizer…
Sorry about the satire but it seems to me as if America, Congress, and the Executive Branch are either (a) ignoring or (b) missing the implications of their actions. While throwing money at the economic crisis might feel good and generate massive “public” support, it will ultimately saddle us with more debt that we can handle. This short-sightedness rankles me because it ignores the fact that we put ourselves into this position. Unregulated banking and business transactions (imposed by Clinton by the way) undercut the stability of our markets and Americans intent on aggrandizing their collective wealth closed their eyes, turned off their brains, and permitted this to happen. If we took more individual responsibility for our personal finances, avoided buying things we could not afford, and invested wisely, maybe we wouldn’t be in meltdown mode right now.
Unfortunately, it is human nature to naively and foolishly disengage from reality. Americans no longer take pride in participating in the political or economic process that is America. Instead, we sit idly by worried only about feeling good, looking good, and our next material acquisition. If we reengaged with the world around us and shrugged off our intellectual lethargy we might have stopped ourselves from going King Midas. Oh well. Maybe next time.
It's not harsh, don't apologize. People put their hands on the stove, it's supposed to burn.
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