Food Stamp Stimulus

As I sit here waiting for the Exederin to take my headache away, I heard some muckity muck from the Obama administration say that food stamps were the best kind of stimulus we have. Nancy Pelosi has stated the same thing about unemployment checks and both of these people claimed that both of these programs created jobs, adding $1.84 to the economy for every dollar spent. Uhhhhhhhh..........

Don't fall for it. On it's face, that may seem plausible, and even something great for our economy. However, the math just doesn't work.

Food stamps and unemployment checks are needed, don't get me wrong. They are a safety net, and a lifeline to many people who genuinely need it. I am only questioning the stimulative affect and the amount of said affect. Follow me on this

First of all, that dollar came from somewhere. The government does not produce wealth. They don't sell anything (except a bunch of crap to the american people), they do not create anything (except headaches for the american people), and just printing money....well, that is a whole different blog post. That dollar came out of the private sector via taxes. Whether income tax, corporate tax, fuel tax, inheritance tax, sin tax, luxury tax, gas guzzler tax, or some other tax they have imposed on us, they have taken this dollar out of the economy.

So right from the start, we are only replacing a dollar with another dollar, so the stimulative affect is down to 84 cents.

Now, do you really think, that this dollar just passed through hands, or were there administrative costs? First the IRS has to take it, then the Department of agriculture has to give it. So, being kind, let's say that this only costs us 25%. (Too tired to do the math on this, but I bet I am pretty close. I may have low-balled it though. The governemnt has NEVER shown itself to be particularly efficient.)

So, take another 25 cents off of that 84 cents, and it leaves you with 59 cents for every dollar spent. So at best, jobs aren't being created, but they may be being maintained.

So while these programs are needed, don't tell me they are stimulative. I ain't buying it.

PS. If it was stimulative, our economy would be booming. There are more people on Food Stamps and unemployment now than ever. So don't think I am anti food stamp. I am anti BS from Washington

Why the left should LIKE trickle down economics

I heard it again and it drives me crazy. Debbie Wasserman Shultz, DNC Chair, was blaming the economy on George W. Bush again, talking about the "failed economic policies" of the Bush administration. May I ask, exactly WHAT policies are you talking about Ms. Chairwoman?

The policies that lead to 54 straight months of economic growth AFTER 9/11?

The lower tax policies that saw revenue GROW from 995 billion dollars a year to 1.445 trillion dollars a year?

How about the policies that saw the average unemployment at 5.7% with the lowest being 5%, which many economist consider to be full employment.

In fact, if you wanna play politics, the economy was humming along great until the Dems took over in 2006, and started controlling things like banking and budgets.

GW isn't blameless. He approved bloating budgets and "abandoned free market principles to save the free market." (I never did inderstand that one). Fannie May and Freddie Mac pressured banks to give loans to people who shouldn't have them. And while GW called for reforming them 17 times, Barney (I break wind on live TV) Franks and Chris Dodd fought refoming them. (They were also the ones who supposedly "Fixed" them afterwards. We just sent Freddie and Fannie another 100 billion in bailout dollars. Good Job you guys!)

But politics aside, a fact that I would think the left would embrace would be the fact that lower taxes ALWAYS increases revenues. It did under JFK, Reagan and GW Bush. And while raising taxes does increase revenue, it is only a short lived increase and then revenues become flat and start to fall.

So if lowering taxes increases revenue, that means more money to spend on kids, old people, and other projects that the left "claims" conservatives are against.

So, get on the lower taxes bandwagon all you folks on the left. Or is there some other reason you want to tax the "Rich" more?

Just remember this, when the rich end up not having enough money to fund all the stuff, the government will keep dropping the bar for what it considers rich, and eventually they will come for your wealth.