I usually don’t say much on politics, but after seeing the details of Presdient Obama’s stimulus bill, I had to say something. According to the White House, here’s how President Obama desires to produce “long-term growth”:
- Make government buildings more energy efficient
- Take steps to computerize medical records
- Update school facilities and equipment
- Expand broadband internet capabilities to rural areas, thus allowing small businesses to compete with larger, urban ones
- Investing in science to facilitate breakthroughs, etc.
Incidentally, the White House article above does not mention the $25 million dollars for ATV trails. That aside, I’m admittedly not an economist, but here goes anyway. I sincerely hope that our new president is successful in stimulating the economy, but I really believe that the above package is a temporary-patch that will hardly accomplish more than simply printing more paper currency. Here’s my economic stimulus plan (I have nothing to say regarding the housing crisis):
- Allow off-shore drilling as well as allowing access to our vast oil resources in Alaska.
- Offer financial incentives to new companies who wish to pursue the above option with the understanding that a percentage of their future revenues will be used to pay down the national debt.
- Offer financial grants or interest free business loans to individuals wishing to begin new businesses.
- Enact tax breaks that would benefit small business owners.
- Union reform. When assembly line workers are paid $30/hour (plus benefits) regardless of their abilities, and when their job is secure regardless of their performance (thanks to Union protection), why should it be a surprise that we cannot compete with foreign auto manufacturing?
There are portions of the present bill that are commendable (I love that it encourages scientific research and educational pursuits along those lines). However, it seems that the major aspect of the bill is government programs and spending, which really will only temporarily flood the market with cash.