Saturday, February 7, 2009

Spendulus

I don't know a lot about this Stimulus Bill that is about to be passed. However, can someone explain to me why spending this gargantuan amount of money is a good idea? We, as a nation, are so far up to our eyeballs in debt as it is. This will only deepen that debt right? I mean where are we getting this money? To me, it would make better sense, and set a better national example if we just sucked it up and lived with the consequences for a while and SAVED MONEY! "Hey, spend money you don't have, it doesn't matter." How is this good economics? Aren't the basic principles of economics the same? No matter if it is national or personal. If I needed $500thousand and didn't have it I wouldn't go out an borrow a million. I would save - or in my case just do without. This stimulus bill sets an incredibly bad precedent for our country. It MIGHT help in the short term, but in the long term it does not bode well for us.

1 comments:

George said...

The idea behind it is that if we spend money on infrastructure it will create jobs and thus boost the economy. the problem with it is that this bill goes WAY beyond that. Deficit spending (basically just printing more money so that there is more to spend) generally does nothing but cause inflation.

Add to that the fact that a bunch of this money is earmarked for some pretty lame side projects that our politicians have thrown in to appease their money suppliers...and this bill is a disaster.

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