Monday, December 7, 2009
John Boehner Does Not Understand The Stimulus
If we listen to people like House Minority Leader John Boehner, we would believe that there is no such thing as a lagging economic indicator. Representative Boehner and the rest of the Republican tribe would have us all believe that if the Stimulus Package that Congress passed earlier this year does not hit the economy like nitro hitting a heart patient, and giving immediate results, then it does not work. Well, as usual, I think they are all wet.
The Stimulus will work, just as the stimulus worked in bringing us out of the Great Depression. World War Two was in effect a stimulus. What Republicans do not understand is that a stimulus does not have to be for tanks and planes to work. A stimulus to rebuild our infrastructure as a country will have the same, if not a better effect. And, while we are at it, we need to rebuild the electric grid of the whole country. Talk about National Security, I can not think of anything as important to our National Security as our electric grid. Money spent on the grid will pay off big time as we move into the 21st century.
Keeping police, fire and teachers on the job by helping the states with their budgets is also part of the stimulus and, in my opinion, part of our National Security as well. The more people we can keep working at jobs that already exist the faster we can come out of the recession.
Credit remains a key factor to bringing the economy out of the current recession. Credit is money in the 21st century, and without credit businesses and consumers are reduced to paying for everything with cash. A cash economy does not grow as fast as a credit economy. The banks need to be encouraged to lend, but they also need to be put back into the banking business, only. If they do not have any other means of earnings, they will lend money.
The Stimulus will work and it is working, but it is going to take more than a year for it to be really felt. An economy the size of the United States' economy does not react like a Kool-Aid stand on the corner of Main Street on the 4th of July.