The Stimulus:
It's been a pretty big topic these past few weeks. However, one major concern is the continual and reckless expansion of the already huge federal government.
This Op-ed link outlines a couple of concerns.
First, when they say $800 billion, we should probably double it in our minds, because the Congressional Budget Office believes that, if renewed, the cost will eventually be over $1.5 trillion over 10 years.
But will it be renewed? As the author contends, it will be difficult to dismantle programs once they are firmly embedded in the massive infrastructural monstrosity that is the United States Federal Government. Which is probably why most Republicans voted against the package. Although Republicans clearly lost this battle of the bill, Congressional Republicans, by voting no, clearly realize that expanding the federal government at this particular time is not the wise move to make.
Alas...at least the effort was there.
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1 comment:
Three thoughts on this:
1. One of the criticisms I have heard of this bill (largely from the left and the old establishment) is that it is not specific enough about how the money is to be spent. By leaving these details unclear, the decisions will be made by state and local government officials. This would lessen the likelihood of a bill like this being "renewed".
2. On the subject of renewal, it is important to be clear that spending bills can't actually get "renewed". In the op-ed you cited they pointed to the fact that when these temporary measures have been exhausted, politicians will refer to them as "cuts" unless the same level of funding is maintained. While that is quite possible, it still wouldn't be a "renewal".
3. The expansion of the federal government, while something I oppose, is nothing compared with complications inherent when spending this amount of money. Trying to spend our way out of this crisis under current economic conditions will likely lead to either a)the drying up of the bond market and collapse of the dollar (unlikely), or b)inflation as the Fed will print money to finance this expansion.
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