Wednesday, December 21, 2011
Once Again, We Do Not Live In A Vacuum.
As Barack Obama spends his precious days burning fossil fuels jetting around the country pointing out potholes and bridges that need paint jobs, we need to keep something in mind. We have done this before in our nation's history. The public works project of FDR was proven to be a miserable failure and something that actually prolonged the Depression known as the Great Depression by a full decade. During the Johnson years we implemented the Model Cities Program, and just drive through Detroit Michigan to see how that turned out. We also tried to do it again in 2009, with the big difference being that federal and state regulations had added 80 years of increased red tape. The results were even worse. That is why the second round of proposed stimulus spending is now referred to as a, "jobs bill." The proponents don't want to turn off voters by cluing them into what is actually being proposed. Reason T.V. has put together a case study of Silver Spring Maryland, a community like many others, and what happened to the stimulus money they received. How exactly did our tax dollars, which we haven't actually paid back yet by the way, work on our behalf? Shovel ready jobs do not exist. Silver Spring Maryland is still involved in the wage impact studies needed to begin the process of determining how much they will have to pay the unionized workers needed to fill their potholes. That's only one example. Solyndra, a company mentioned in the video, which sank in the toilet of bureaucratic waste, and took our $571 Million with it, listed overbearing federal regulation newly created by the man that gave them the money as one of the main contributors to their demise. During recent days I have read much about how the unemployment rate has fallen below 9%, and how the Obama Policies may be working after all. The fact hidden in each of these articles from a, "non biased," media is the fact that the size of the workforce has been adjusted downward by huge numbers in order to create this illusion. If the size of the workforce were considered the same as it was January 21, 2009, the unemployment rate would actually be 11.5%. This does not even account for any population growth during that time. How many times must we experience the failure of the Keynesian school of economics before we learn our lesson. Albert Einstein once quipped that insanity is defined as attempting the same thing over and over again expecting different results. Government Stimulus spending is no different. Our President has suggested, after throwing $1 Trillion into the Potomac River, that all we need to do to make the experiment work this time was to throw another $500 Billion into the Potomac River. I realize that there is someone out there with a degree in Societal Economic Justice Studies from Harvard who will very eloquently be able to tell me that these things are really much more nuanced than simple mathematics, and that it will all work out if we just go bigger this time around. The problem with Socialism however is that sooner or later, you will run out of other people's money. In fact we have reached and surpassed this point. We are now spending $1.5 Trillion per year of money we do not have, and must at some later date pay back. This is a can we can only kick so far down the road before those who are lending us the money put the brakes on for us. That pain will be a far different pain than doing something about it on our own.