Last month our Supreme Leader was quoted as saying “I’m not naive,” words that history will make famous some day. His advisors, being liberals, have only one lever to pull. Having pulled it harder than its ever been pulled before and to no avail, their advice?
The U.S. should consider drafting a second stimulus package focusing on infrastructure projects because the $787 billion approved in February was “a bit too small,” said Laura Tyson, an adviser to President Barack Obama.
“A bit too small.” Who are these people? Should it have had an “eency weency bit more pork?” Doubling it would not incent businesses to hire new employees right now or convince consumers to stop saving and start spending (hey, they’re smarter than the people they elected – maybe there is Hope®).
The Obama stimulus already is the New Larger Size version of the failed Bush stimulus. Remember?
Hmm, what sort of policy would have incented hiring and spending? That’s a tough one. Anyone?
“The economy is worse than we forecast on which the stimulus program was based,” Tyson, who is a member of Obama’s Economic Recovery Advisory board, told the Nomura Equity Forum. “We probably have already 2.5 million more job losses than anticipated.”
Let me tweak that comment for you Ms. Tyson: “The economy is worse than we forecast because of the stimulus program.” Washington D.C. should be renamed “Ground Zero.”
The stimulus program will result in higher inflation and will require higher taxes. The anticipation of both is already putting pressure on businesses, who will continue to run as lean as they can for a long, long time. In fact, business owners are in fear of the government’s next move. Employees know this. The trickle-down effect is that even those that have jobs are hoarding cash and cutting expenditures.
Not very stimulating.
Maybe we should follow the MAC’s proposed signage plan and apply it to the economy. Let’s put up $2 Million signs everywhere “Be Happy. Spend Money.”
Tyson, 62, later told reporters that the U.S. can afford to pay for a second package, even as the fiscal deficit soars. She said the budget shortfall is “likely to be worse” than the equivalent of 12 percent of gross domestic product that the administration forecast for 2009 and the 8 percent to 9 percent it projected for next year.
We can “afford to pay” is an egregious choice of words given the fact that no one is “paying” – we are borrowing. I suppose her assessment is based on the fact that China hasn’t canceled our Visa card yet.
Tyson said the U.S. should shift away from its dependence on consumption to grow, and promote expansion through investment and exports. The dollar will need to weaken in the longer term to promote export-led growth, she said.
So, we shouldn’t consume, but let’s hope the rest of the world does? Remember kids what liberals mean when they say “investment?” I wonder how my Social Security “investments” are doing?
I think you’ve done enough to weaken the dollar in the long term Ms. Tyson. Thank you.
The Obama administration and its advisors are not naive; they know exactly what they are doing. They are holding the economy hostage until they get their way, executing an agenda despite its effects on the economy and leaving the “fixing” to the next administration.