This song is constantly playing in my head while I read the numerous articles about, well about Obama in general, but especially the stimulus plans.
A report came out stating that many states have spent stimulus money on short-term shovel-ready projects rather than "long-term improvements." Obviously reading news articles, the stimulus hasn't worked, it's actually made things worse. A combination of filling budget gaps (rather than improvements), fraud, and well a crappy idea have made the economy worse.
Jamie Dupree said this morning that the current Administration is at a point where they can no longer blame those head of them for the mess, they have to start taking responsibility for their mistakes, but alas they are politicians and will not take place.
I still think axing federal withholding for two months is the best short-term solution. Will it be enough to generate the ball rolling so that growth can begin again, I'm not sure, but I think it will show a boost. In all honesty, had I been allowed to keep my extra withholding money in January & February I would have spent that money faster than you could've said "Stimulus." Now, I'd pay down debts, bills, and put money away. However, even paying off debts, gives money back to my creditors, allowing them to have money to spend elsewhere. So maybe my idea is just selfish now.
What to do now? Fortunately, Harry Reid, may have a little sense. While Obama & House Majority leader Steny Hoyer are open to a second stimulus...Harry Reid said "uhhh no!" His reasoning is that "We're doing fine," which isn't exactly true, but I guess we'll have to agree to disagree on the reasoning, because we agree on the outcome.
Hoyer's logic is flawed however, because he says that it is too early to know if the first stimulus was enough to "jolt the nation's staggering economy back to life." However, he mentioned "Every economist I talk to believes we have flattened out." So, the first stimulus was a short-term fix, which didn't actually fix anything, and after 5ish months, when only a small amount of the money has been released, the stimulus is wearing off? To me that seems quite contradictory.
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