We are in an official recession, the GDP is projected to shrink for the next calendar year, unemployment is sky rocketing, more people have filed for unemployment claims than in history, there are record foreclosures, home prices are still dropping, the stock market is having a difficult time finding the bottom, and to top it all off, inflation has surged higher than was expected. How are we going to recover and get back on solid financial ground? Let me give you the bottom 3 ways to accomplish economic recovery.
#3. Reward Bad Behavior – Our government led by Pelosi and Reid and back benched by our supposed leader, President Obama has written into this stimulus package (and they are already discussing stimulus part 2) that if you are behind in your mortgage then you can be eligible for the banks to reduce your principle and interest and write the amount due to the back end of your mortgage so you will no longer be behind. That’s great, if you are behind. What about those who are not behind? Should we quit paying our mortgages so we can get a better interest rate and reduce the amount we owe also lowering our monthly payment? Sounds like a brilliant plan to me… NOT.
#2. Spend More – I seem to recall all the Bush haters saying the reason the economy stinks was due to the $10 Billion monthly we were spending in Iraq combined with the ridiculous amounts of pork barrel spending by members of congress. Now those same Bush bashers are saying the only way we can get out of the financial mess we are in is by spending more to the tune of $3.2 trillion over the next 5 years on various pork projects and government programs as long as we call it a stimulus plan. This stimulus plan was no plan at all, and it definitely is not stimulative. If spending recklessly got us in this mess, how will multiplying the amount of spending all the while being even more reckless help? Are they trying to fight fire with fire? I didn’t like the out-of-control spending when Bush was president, but it seems like there is so much hypocrisy here. With a Republican president, spending is called reckless, pork projects, and “out-of-control”, but with Democrat Obama, it’s called stimulus. Inflation is coming fast and hard.
#1. Raise Taxes – We haven’t done it yet, but you can be sure that it is coming. The key words those on the right are listening for are phrases like “pay your fair share”, economic and social justice, targeted tax cuts, tax credits, and “investment”. Politicians who use those words really mean TAX INCREASE for those who actually pay taxes to foot the bill for those who do not pay taxes (but they receive loads of services). Yes, we have heard those words used over the past few months, so we know that the tax increases are coming. After all, it’s only fair. Right?
In my humble opinion, it seems as if President PelosiReidObama is doing everything they can to make sure the economy does not recover. In fact, this outrageous generational theft (McCain’s term for this “Stimulus Plan”) is going to lengthen and deepen the recession into a possible depression.