28 January 2008

Bush's Economic Stimulus Package

Tonight is the big night.....The last state of The Union speech to be given by GW. He will dance around about how well his strategy in Iraq has worked. And then he will go to his new economic stimulation plan will benefit Americans and Corporations.

Let us begin with the tax rebates. The theory is that the taxpayer will go out and spend this money on consumer goods thus massaging the economy back to health. NO! This is an economic band-aid. Why? The normal taxpayer will use the rebate for their mortgage or their credit cards or something similar. The poor, who do not own a house in trouble or have the luxury of multiple credit cards, will probably spend this rebate on toys or electronic or such--consumer goods. So they will be the only ones using the money in the economy, but they will not be that effective in the slide of the economy.

Ok, let's move on to the REAL benefit of the package. Corporate Incentives. Corporate tax credits will help create jobs, according to the President. In what world does he live? Consumer demand creates jobs, not corporate tax breaks. Do you honestly believe that if a company has an extra $2 billion, that they will say darn we need to create more jobs? You are dreaming! If their is no demand, they will not invest it in production. It is just that simple.

The small amount of jobs that will be created will NOT be in the US. since almost all consumer goods are imported, from, India, China, Thailand and so on, any jobs created will be in those countries not here. The consumer goods that will be bought, like toys, china, clothing, are all made overseas. So where will these jobs be created in this country. Any jobs created will be low paying jobs and that too will be a drag on the economy.

The real questions that should be asked are: we have a $7 trillion deficit and this package will cost about $140 billion, where will the money come from to pay for this plan? If they print more money, then that will be yet another drag on the economy. In the past, how many high paying jobs have past corporate tax cuts created? Not enough!

IMO, Bush's plan is just a way to make the economy look good for a short period of time. until he is out of office and then when the economy tanks, someone else will be in office and will take the blame.

Do not be ignorant! This plan is a band-aid for a gunshot wound. There is no way it can be a good thing for the future. Someone will have to pay for this plan.

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