On Monday the President revealed his job plan (called the American Jobs Act) and as was expected, this is really just a toned down version of the Stimulus passed early in 2009. Remember the Obama administration told us that stimulus was needed to keep unemployment below 8% but we all know how well that worked out. You can see page 4 of the following document that proves the Stimulus of January 2009 was touted to keep Unemployment below 8%. Since the definition of Insanity is doing the same thing and expecting different results, this Stimulus 2.0 should be dismissed immediately since it won’t help the economy.
But when you dig into the deatils you’ll see that this new bill will be worse than the first stimulus. The AJA will create two new bureaucracies – The American Infrastructure Financing Authority and the Public Safety Broadband Corporation. These new bureaucracies will be like Fannie Mae and Freddie Mac and are permanent! Is that really what we need? More government agencies to regulate Infrastructure programs and Broadband internet access? This bill will also pay for these new projects by increasing taxes on anyone (including small business owners) making over $200,000 which is not what we need right now (or ever). Even a NY Time columnist and Harvard profession doesn’t like the plan and economist Richard Posner shows why stimulus 2.0 won’t work.
So, with all that going against it, there should be no reason why Republicans should vote for it, right? On common sense, economical terms I’d agree that this should not be passed but on political terms I think Republicans should vote for it. What? Am I crazy?
Here’s why. Next year, the economy will either be experiencing flat GDP growth (like now) or worse be in a double dip recession and this will happend with or without the AJA. If Republicans block the AJA then the Community Organizer in Chief will be talking daily about the ‘do nothing congress’ and why the current economic woes should be blamed on Republicans. If the Republicans pass the AJA, Obama will then own 100% of the economy and won’t be able to blamestorm Congress or the Republican nominee for President.
Republicans can vote for the bill but all along make sure that the American public knows they don’t think it will work. They can say that the President will veto any of the other plans presented by Republicans so this is all they can do now. They might even use it as a bargaining chip to get Obama to back off regulation from the DOJ and FDA over-regulation that is stifling business. They can really have fun with this and put the ball back in the court of the Democrats in the Senate to hitch their wagon to this dog of a bill. When Republicans take back the Senate and White House then we can repeal the AJA when we repeal Obamacare and we’ll have suffered for only a year.
As a parent, sometimes I have to watch my children do something that I know will harm them in order to teach them a lesson. The Liberals have not listened to our calls that Keynesian Economics doesn’t work in our current situation where our national debt equals our GDP. It’s time to let them stick their fingers in a flame so that everyone can see how much it hurts. We had to have Carter to get Reagan and now we had to have Obama/Pelosi/Reid to get……
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