The Cliff/Stimulus Problem Summarized in One Phrase

Posted: December 1, 2012 by ShortTimer in Economics, Government, Politics, Redistribution, Welfare state
Tags:

From Yahoo News:

The total bill: about $255 billion out of the federal government’s pocket – an amount the GOP would likely say needs to be offset by spending cuts elsewhere.

For emphasis, I’ll write it again, if you missed it the first time, and I’ll put it in bold.

The total bill: about $255 billion out of the federal government’s pocket – an amount the GOP would likely say needs to be offset by spending cuts elsewhere.

The federal government doesn’t have pockets.  It doesn’t have money of its own.  It has what it takes from the taxpayer.

That right there sums up so much of the problem – the belief that government has money and that it doesn’t take it from taxpayers… and that can be extended to a lot more problems in the proposition, as well as pretty much all of the root overspending causes.

This is the proposition:

How about a little government economic stimulus?

That may sound incongruous considering the budget deficit and the push from Republicans to cut government spending.

But President Obama’s first offer to avoid going over the “fiscal cliff” holds out the hope of at least some stimulus. This would include extending the 2 percentage point Social Security payroll tax cut, boosting a tax incentive to businesses, establishing a $50 billion bank for long-term infrastructure projects, and extending unemployment benefits.

Stimulus doesn’t work, it’s more Keynesian idiocy.  Why doesn’t it work?  Because it takes from the citizen either through direct taxation or through devaluation of the citizens’ currency, strains it through government, and redistributes it to losers that can’t function in a free market.

This is redistribution plain and simple.  The government will take $255,000,000,000 from taxpayers, then turn around and spend much of that money on an army of bureaucrats to filter it through, then give it to programs and policies that aren’t working and aren’t solvent on their own, and in some cases, those that directly hurt both the nation’s ability to engage in an economic recovery.

UNEMPLOYMENT BENEFITS

And, finally, Obama wants to extend unemployment benefits, which would cost about $30 billion.

Under current law, if Congress does nothing, the maximum number of weeks in which an individual could receive jobless will drop to 26 from the current 73 weeks for states with unemployment over 9 percent and 63 weeks for states with unemployment over 7 percent.

If Congress does nothing about the program during the lame-duck session, some 2.1 million jobless will lose their benefits in the first week of January, says Judy Conti, a federal advocacy coordinator at the National Employment Law Project (NELP) in Washington. By the end of the March, she says, another 900,000 people will lose their benefits.

“Forty percent of the unemployed are long term unemployed,” she says. “They have been out of the workforce for over six months.”

Oh really?  You think the reason they might be out of work for 6 months is because they get 17 months of unemployment benefits that incentivize not working?  Of course, Ms. Conti is an advocacy coordinator (a job that would not exist in the free market) whose existence in life is entirely dependent on her ability to take from some by force and redistribute to others.

There’ve been studies done on unemployment before, and every time, the eggheads who study it are shocked to find out that when unemployment runs out, people get jobs.

Consider the Welfare Cliff from the other day:

welfare cliffUnless you’re making a lot, there are diminishing returns to actually working.  And when you’re making close to $50,000-$60,000 in benefits for not working, why bother?

The planners are either naively blind to this, or are embracing it as a destructive means to obliterate the United States.  Of course, it’s “government money”, as in, once again, taken from productive citizens and given to non-productive citizens, all the while enshrining the state as the lord and savior of the poor, naive serfs.

And the politics of it are Obama setting the doofus Republicans up to either take the blame for tax rate increases (that the Democrats were opposed to during the Bush years) when he doesn’t work with Republicans, or for being the winner when he gets to institute whatever policies he feels like if they cave… and he’ll still blame their “obstructionism” for his own failures.

About these ads

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s