This economy thing we're in is way more serious than the now-in-development economic stimulus package gives it credit for being. This package, if not changed drastically (and, believe me, it won't be) is going to go down in history as one of the worst things to ever happen to our country.
President Obama is, during one of our toughest times ever, using fear to entirely mortgage or perhaps even give up on, our future in order to push his agenda with massive spending that is not going to have the desired positive economic impact.
The proposed bills from the Senate and House, by all expert analysis and accounts, have very little spending that is really geared toward fast economic stimulus -- something like less than 15% of the 800+ billion.
Do they not realize what kind of money $800 billion is? Do they not realize where much of that will have to come from -- foreign borrowing with massive tax hikes in the future in attempt to repay it? Oh yeah, wait a minute, they probably do understand all of that.
There are also three key things that truly do not seem to even be on their radar screen. They are:
1) Main Street is going to be devastated by this economy. Small and medium sized businesses all over are doing their best to hang in there but huge numbers of them are going to fall in coming months. While large businesses can attempt to survive by shifting numbers and laying people off, smaller businesses do not so much have that as an option. These businesses are just going to close. Look for shuttered businesses to be appearing soon in huge numbers in neighborhoods near you.
2) A huge banking crisis, perhaps even bigger than the mortgage crisis and certainly impacting some of the banks which have been pretty stable of late, will ensue as business loans and lines of credit go bad. And also as mortgages on the homes of Main Street business owners and their workers go bad. I do not know the numbers but this could very well eclipse what we have seen thus far in the banking crisis.
3) We talk about the current rapidly growing unemployment numbers but we also cannot ignore the fact that businesses simply are not and can not hire people right now. We will have a huge number of high school and college graduates hitting the streets in a few months, unable to find work. College loans will go unpaid and social infrastructure will be further stressed. We ain't seen nothin' yet.
Folks, I know this post is ugly. I know I sound pessimistic. I am telling you, though -- this is serious. We cannot support this economic stimulus package and, if you're being silent about it and not squawking to your congresspeople and everyone you run into, you are by your silence supporting something that, mark my words, will be devastating to our country.
$800 billion is a huge amount of money. The piper will have to be paid. We must not go down this road unless we have assurance that every penny will go for rapid economic stimulus.
And, even at that, it is questionable how effective it would be. Read this article on Japan.
This is going to be devastating, folks. Now is not the time to be silent.