Monday, November 2, 2009

The stimulus that works and the stimulus that doesn't

This morning, I saw this article about positive effects the stimulus money is having: hot meals for seniors. Something just feels good inside when you discover that some of your tax money is going to feeding senior citizens instead of adding to the billions in government waste. One of the things I do like about the Democratic party is that they are usually the ones to spend more money on social-economical programs such as this. The billions in bailout and TARP money that went to all the financial institutions feels a lot more republican. I think both are important, but let's be honest, using money for old people is the 'feel-good' kind of government spending and fixing our financial institutions feels a lot more cold, and removed. Of course, regarding the latter, the Obama admin totally missed the boat on how to fix the economy. Turns out you can't throw billions of dollars at a problem with no regulations and expect it is blossom into a booming economy. As Josh Gottleib said at a Shabbos meal one time, 'If they had given all the money to the banks and said, 'Here is the money-now go use it! Lend it out to the American people, let them buy homes and fix their credit and get their mortgages adjusted into something can afford." then we would be in much better shape." But instead, the banks took the money and put it into their savings (or holdings, etc.) and are just sitting on it. And of course, the government, who are leaders in arrogance can not and would not go back to the financial institutions with egg on their face and say, 'Oops, we messed up, we failed to stimulate the economy. Can you please give us our money back, or, rather we demand that you lend it all out." To which they will receive an emphatic: "NO."

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