True Economic Stimulus

It has been over 6 months, since George Bush went in front of the entire nation and told us all that we are all screwed. He succeeded in putting the nation into a panic setting the stage for an unprecedented flurry of government spending. After 1/2 a year of spending, none of the stimulus has had any impact whatsoever. Employment continues to rise, housing prices plummet, and GDP is still shrinking.

The underlying theory behind the “shop til you drop” stimulus plan is Keynesian economics which became popular during the last depression. Unfortunately, Keynesian economics will nor work this time. The primary reason is that the United States is broke. In the last 50 years, our great country has been transformed from the largest creditor nation to the largest debtor nation. We are broke, and we are addicted to spending more money than we have. Addicted is the only appropriate word, and like an addict, there is only one solution. We must wean ourselves from the addiction, rather than borrow more money. Obama and Bush have been feeding the addiction. Read More