Stimulus: Jump Starting a Car with No Engine
Left-wing ideologues like Paul Krugman posing as economists believe that the reason why the Obama stimulus dumped upon us didn't work is because it wasn't big enough. Krugman points to statistics ... >>>
(This is not atypical short-sightedness for Krugman. Remember his piece bloviating about how Wisconsin's unionized teachers were superior to Texas' non-union teachers? Iowahawk destroyed Krugman's case with a little bit of research and basic logic. For those of you who are not familiar with this fun piece of journalism, read it here.)
Of course, Krugman fails to analyze his data properly. Even a slightly intelligent reading of those statistics reveals a distinctly opposite conclusion. >>>
They say that because the amount spent wasn't enough, a considerably larger stimulus was necessary to do the job. The "small" amount provided was merely a temporary Band-Aid.
Well, it appears to me that a larger amount would have been just a bigger Band-Aid.
In order for a "jump-start" to work for a car, the other systems of the car have to be working properly. >>> Without a well-functioning economy with good underpinnings, a jump-start will accomplish nothing -- except delay the inevitable, and leave us in a bigger hole. A bigger stimulus would have kept the headlights and radio on longer, but with no engine, the lights go out when the jumping battery is out of juice.
These economists sometimes refer to themselves as Keynesians, >>>
We aren't competitive in areas we used to dominate. To be sure, we can become more competitive and take strides to correct our course, and we should. But to spend more without correcting our problems is simply a waste of money.
How do we correct our lack of competitiveness? Relaxing regulations would be a great place to start. Regaining a productive attitude from our population is also a must.
How do we get the productive attitude going again? Quit coddling everyone. Demand a return to John Kennedy's famous request: "Ask not what your country can do for you -- ask what you can do for your country." Heck, I'd be satisfied if people would just expect to take care of themselves, and be proud of it.
Last but not least, we need to get our energy policies straightened out. Build the pipeline, drill offshore, encourage nuclear and coal production.
With those policies in place, we can afford -- even encourage -- a stimulus, because then we have something to jump-start. In fact, after the engine turns over, stay out of the way or get run over.
Until then, forget the stimulus. It's simply a waste of money, and delays the inevitable. And when the inevitable gets here, it's a bigger hole to dig out of.
Decent article. As is so elegantly pointed out: stimulating the creation of public sector jobs builds the COST side of the ledger, not the revenue side. I am sometimes reminded that "The Angels dare not sleep while the Devil leaves the porch-light on."