Jan
19
Posted on January 19, 2009
Let’s keep spending
Filed Under Blog

With the presidential inauguration tomorrow, we are entering a new chapter of history.? For the first time in over 12 years, the Democrats will have control of both houses of Congress and the Presidency.? While there are clear ideological differences when it comes to government spending, it appears that both Democrats and Republicans have turned the spigot on and nobody wants to turn it off.? After an enormous financial bailout, already huge amounts of deficit spending on the war and now as tax revenues severely decline, we are talking about yet again another “stimulus package”.? A huge part of the proposed package includes earmarks for projects that will not in any way shape an economic recovery.? This is exactly what John McCain was fighting against during his failed presidential campaign.? Other parts of the package are just handouts to people who are not even necessarily in need of handouts.? We don’t understand the magnitude of how this debt is going to cripple us in the future.? It is inevitable that we are going to have significant inflation (flooding the financial system with close to $2 trillion in a short period of time is bound to make this happen) and the interest payments on the steeply?and steadily increasing?debt are going to be insurmountable.? Somebody needs to sit down and be rational.? If a stimulus package is necessary (which I am not convinced yet that it is), then lets look at where every dollar is going.? We need to be intelligent with how we spend future generations’ money.

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