Two Approaches to Economic Stimulus

June/20/2009 18:21PM
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We passed a $700 billion stimulus bill to get the economy back on track. We were promised it would keep unemployment down and turn the GDP around. Neither has happened.

Our money went to projects to get politicians reelected. Like a bridge for turtles. Our money is tied up in the bureaucratic process and much will not be spent until late 2010. Our money is going to green energy projects. Many are being blocked by the very environmentalists who cry for this cause. Our money is going to lobbyists. Never has the lobbying business been bigger and better in Washington than today. Despite a campaign promise to end all that. Or, at worst curtail the waste. It’s bigger than ever.

Our money is being dispensed by politicians who are fighting over it like jackals on a carcass. Politicians who have never run a business, or turned anything around. At best, most have practiced law, and found it a slower way to immense wealth than politics. As always, it is being largely wasted.

China, on the other hand, operates like a business. Spending decisions are based on what will kick start the GDP fastest. What will put people to work quickest. Where does the biggest leverage exist. Just like a successful corporation allocates scarce resources. The money goes where the biggest bang for the buck lies.

The world was surprised when the GDP for China for last month was released and it was up a full percentage point over expectations. Nine percent vs. eight percent, in round numbers. Wouldn’t it be great to see a positive GDP, let alone a growth of 9 percent. Now, everyone is worried about inflation in China. They are turning it around too fast? Nice problem to have.

Meanwhile, they are building nuclear power plants, coal-fired power plants and locking up secure contract supplies of crude oil all over the world, They are working on wind and solar, but they know they need power to foster production and growth while the “green” options kick in and help. They have a realistic plan.

Our government throws billions at failed businesses to save UAW jobs or grow government control. Banks, for example. Remember the Bank of Congress? It closed down when representatives and senators bounced too many checks. Over 12,000 of them. These are the same people who are going to run the banks.

One country takes government money and makes it work to keep the economy grow. The other country takes the taxpayers money and spends it like drunken sailors. Spending it to get future votes, not future jobs. One system works and the other is broken. The broken system is not broken, just the people who are running the system.

Once again, it’s time for term limits. Up and down the line.

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