Stimulus or Enema?

The stimulus package is wrong for America. It is an expenditure we cannot afford without putting the long-term fiscal security of this country at risk (I refer to the recent CBO study on the Stimulus Package). On one hand, congress chides Americans for spending beyond their means, mortgaging their future, and not saving enough and then turns around and does precisely that on a national level.

Beyond simply bad fiscal policy, the stimulus spending does not meet the administration’s own test for what constitutes a good stimulus package: it is not timely, it is not targeted, and it is not temporary. It is an attempt by tax-and-spend liberals to push through congress their progressive socialist agenda without debate. Two-thirds of the spending is structural and will remain with us for years and years to come, further increasing the interest we will have to pay on our "revolving" credit card account.

Last, our experience to date on the TARP program suggests that the spending will be ineffective: preliminary indications are for every $100 of spending we receive $66 of value. If you want to stimulate the economy, reduce the marginal individual and corporate tax rates to put money back into the hands of those who create value. My hometown of Virginia Beach does not need another tennis court, which is what we will receive under the Obama plan. It needs the ability to compete in a world that is becoming more competitive and connected.Every financial decision I have ever made that was driven by deadlines created by fear has not turned out so good. I cannot imagine that a $1 trillion dollar, 30 day decision will turn out any better. Perhaps the congress should stick to capitalism and try fact based decision making. That would be refreshing.