Free Markets, Free People

Chart of the day – tell me again why we need another “stimulus”?

Because as I read this chart, what is being proposed by the Obama administration is about what remains unspent from “Porkulus I”, er, the first stimulus bill:



We already know this hasn’t worked.  That’s the implied reason for the second stimulus (although unstated, of course).  So there’s no reason to assume the second stimulus – mostly a smaller repeat of what failed in the previous rendition – is going to do any good either.

Here, I have an idea – go ahead with the $65 billion in remaining tax cuts, combine them with the tax cuts in the new stimulus and cancel all spending left in the first and that proposed in the second.

And watch Paul Krugman melt down.   Yeah, that’s the ticket.



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13 Responses to Chart of the day – tell me again why we need another “stimulus”?

  • In a comparative sense, this is the same as saying you have to have another nickel after already spending 75 cents with another quarter still in your pocket.

  • This chart is incomplete. Where’s the pie slice for “lining some politician’s pocket” ????

  • Shoot!  gotta guarantee the payola train NOW!!!!! Real chance the Rethuglicans will control the House, possibly the Senate.  We have to secure the supply line before they get into office and derail the funding!

  • This “stimulus” is enough to completely cover Delaware and Rhode Island with $1 bills.

  • The reason for another stimulus is quite simple. If/when the economy improves, Obama needs something he can point to and say “See? We caused that.”  The amount doesn’t matter, as long as it’s an impressive sounding number.

    It doesn’t matter in the least whether there’s any actual causality. He knows his press acolytes will eat his claim up, because it makes their leg tingle, and because their minimal-and-mostly-wrong understanding of economics matches Obama’s.

    • That’s just a potential side-benefit.  There will be fewer opportunities for this kind of shenanigans if Republicans make significant gains in congress.  Not because Republicans are fiscally responsible, but they’ll block it because it hurts Obama politically and makes the GOP appear to be fiscal hawks in the run-up to 2012.

      • Sad but true.  Well, I guess the GOP doing the right thing for the wrong reasons is better than doing the wrong thing for any reason.

        As for being fiscal hawks, that’s all relative: “Hey!  The other guys are irresponsible because they want to spend $1 trillion that we don’t have!  WE, on the other hand, are responsible because we only want to spend $750 billion that we don’t have.  VOTE FOR US!”

  • I did not know there were that many tax cuts in the Stimulus. Or does that include tax credits otherwise known as subsidies?

  • I keep asking myself if this all could have been avoided if the feds, after taking over Fannie Mae and Freddie Mac, had just bought up all the “toxic assets” at par and piled them into Fannie Mae and Freddie Mac like one big “toxic wasteland” to be administered until they could all be unwound.  It probably would have been cheaper.
    As it was, virtually few of the “toxic assets” were detoxed by TARP (which was more of a liquidity tool).  Most of those “toxic assets” are still “out there.”  But what’s worse, they are still making new “toxic assets” …

    MILWAUKEE — When the housing bubble burst, one of the culprits, economists agreed, was exotic mortgages, including those that required little or no money down.
    But on a recent evening, Matthew and Hannah Middlebrooke stood in their new $115,000 three-bedroom ranch house here, which Mr. Middlebrooke bought in June with just $1,000 down.
    Because he also received a grant to cover closing costs and insurance, the check he wrote at the closing was for 67 cents.

    • These fools are convinced that they can turn water into wine. They just won’t stop searching for the magic formula that keeps these asset prices from sinking way lower. 

      These properties are not worth the bubble-driven market price. Not just the ones underwater – most of the real estate in this country was overvalued at the height of the bubble. Those prices *must* return to what the market will bear, and we will simply have to bear the consequences of that, lest we have a couple of Forgotten Decades as the housing market, the wider financial system, and the business sector that depends on it,  is straight-jacketed to avoid facing the real prices of various assets.

      They ought to be accentuating the positive. Yes, someone loses money whenever property comes down in price. But potential buyers *gain* from that. The young family searching for their first home to buy is much better off with cheaper real estate, because they simply cannot afford today’s prices. Lower housing prices help the people leftists claim to care about the most, namely those at the low end economically.

  • And watch Paul Krugman melt down.   Yeah, that’s the ticket.

    Shoot, I PAY for that ticket…!!!!

  • What is also very interesting with the elections coming up and all is the new interpretation of what domestic steel means under the ARRA.  The orignal guidelines allowed foriegn melted and poured steel so long as it underwent a “transformation” in the US or was manufactured into a finished item here in the US. Now,  as of Aug 30, if you have an ARRA funded project, all steel must be melted and poured here in the US.  They waited till the majorty of the simulus money was spent before changing the rules.