This afternoon I read that the Democrats in the Senate believe they persuaded three Republicans to sign onto the stimulus package:
Now, I appreciate what the current legislature is attempting to accomplish: re-election. But, I really wish they’d stop trying to pretend what this is or is not about. Our economy is in recession. We all know this, but our economy has been growing based on borrowing, living beyond our individual means (credit spending), and exaggerated real estate prices.
“One, it was Democratic president Bill Clinton who in 1999 made a particular point of encouraging US banks to lower lending standards to allow more people from racial minorities to buy their own homes. That decision is now widely viewed as the genesis of the 2007 sub-prime meltdown.
Two, it was the Democrats in that same year, 1999, who were instrumental in voting to repeal the Glass-Steagall Act of 1933, a Depression-era bill specifically put in place to limit the ability of banks to damage the US economy by taking excessive risk.”
In recent events, current Congressman from the Democrat side of the aisle, denied any wrongdoing which may have contributed to the real estate collapse.
So what do we take from this? Well, since FDR, essentially the expanded powers of Congress have included passing any legislation asked by a President of the controlling party. (See: Clinton, B., and Bush, G.W.) FDR brought us the New Deal. A failed plan of economic rescue based on creating government jobs in times of high unemployment.
“As the Great Depression persisted, even Treasury Secretary Henry Morgenthau admitted that the New Deal had been a failure. On May 6, 1939, he confessed, “We are spending more than we have ever spent before and it does not work. . . . We have never made good on our promises. . . . I say after eight years of this Administration we have just as much unemployment as when we started. . . . And an enormous debt to boot!””
Today we have a legislature passing almost $1 trillion in new “stimulus” that equates to mortgaging the future, to stay in power today. The baby boomers will die with the nation in debt, today’s 18-30 generation will die with the nation under that same debt, this new stimulus ensures that tomorrow’s generation’s grandchildren will die in this debt. We now expect that the cure for reckless borrowing and spending, is more reckless borrowing and spending. Take a look at the breakdown of the stimulus if you don’t believe me.
These politicians are destroying the financial future of the nation, because they don’t want to be viewed as modern day Herbert Hoovers. Hoover, for those who don’t remember, correctly allowed a recession to take its course. The only cure for recession is recession. People are starting to save their money and pay off debt. This prevents credit spending, which stimulated the economy into the leviathan it is today. Everything taking place, just needs to take place. Anytime someone tells you that government should step in during a recession, is arguing that economy should ONLY EVER grow. That means there is no limit to the economy in their view. Ugh. I’ll leave a couple of videos to summarize a few of the concepts. Enjoy them all.