 merrie says: Similarly, President Clinton and the Republican Congress applied the balanced budget rule in the mid 1990s, producing a long period of steady economic growth. Washington's response to the recession has been ever-expanding borrowing for stimulus packages and bailouts: (1) $150 billion in February; (2) $850 billion in October, and, coming soon; (3) Obama's $800 billion stimulus package. These packages are implementations of Keynesian economics which advocates increased government borrowing during recessions. But government borrowing has severe long-term costs. The late Milton Friedman, founder of the fiscally conservative alternative known as monetarism, often pointed out: "There ain't no free lunch!" Enough Nonsense From The Auto-Makers (get back in your jets and fly home!) Last year on this date a share of GM stock was selling for $27.68. Yesterday it closed at $4.11. The GM board has "increase shareholder value" to the tune of MINUS 85% over the past 12 months. According to Forbes Magazine, GMAC - the financing arm of GM - is also in the soup. Just before Thanksgiving GMAC petitioned to be declared a bank holding company so it could share in the $700 billion bank rescue plan. But that's not the end of the car company in-breeding. Again, from Forbes: GMAC is majority owned by New York-... This Keynsian nonsense needs to stop. It doesn't produce near the positive results that supply-side efforts nor are they as long lasting. There is nothing in Obama's economic "stimulus plan" that differs from the same old stuff that caused the Great Depression to go on 5 years longer than it should have. |
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