Not counting the $800 billion “stimulus” Chairman 0 is pushing in today’s economic speech, the deficit is currently at $1.3 Trillion dolllars. We are looking at a two trillion dollar deficit.
And, as Ace of Spades points out, the stimulus is going to be a lot more bailouts for states and tax bribes than infrastructure development.
There just aren’t enough “shovel-ready projects” to make effective use of the hundreds of billions Obama wants to throw at the recession.
(BTW: I am already effing sick of the buzzphrase “shovel-ready.”)
All restraints on spending have been lifted. This works like gangbusters in Obama’s favor.
So why does Chairman 0 want to throw money at the recession? Easy. This is also a guy who has never run a business and never had an Executive position. Spending other people’s money is all he knows how to do, and during the campaign, he had a bottomless cash reserve. He has never had to make hard choices.
I think he also knows it won’t work. The hard choices that would bring about a more rapid recovery… tax cuts and cuts in government spending including entitlements … would be too painful in the short term, even if the long term benefits were growth and recovery. So, he’s papering over the short term problems by taking on massive debt.
This is why Michigan Governor Jenny “One State Depression” Granholm is an Obama economic advisor. She isn’t telling him how to grow an economy, she’s teaching him how to blame the previous administration and get re-elected after you screw the pooch.
It worked in Michigan.