There is currently a lot of debate going on among our federal legislators. To stimulate or not to stimulate, that is the question. The last stimulus bill didn’t stimulate much of anything except the special interests who enjoyed the money. The economy ignored it. A lot of money went out to prop up local and state governments and caused them to delay having to make some serious decisions on how to balance their budgets. The federal government provided money to prevent local governments from having to decide how to live within their means.
Going back to my drunken sailor analogy, when the drunken sailor only has $1000 available for shore leave, how does he make all of the poor choices and bad decisions necessary to thoroughly enjoy his leave when the poor choices and bad decisions cost a total of $2000? When the extra $1000 is provided by the federal government the drunken sailor is allowed to “get it all” and thoroughly enjoy his leave. Without the artificial stimulus from the federal government the drunken sailor would have to make some serious decisions and limit his personal pleasures.
The state and local governments have been in that situation but haven’t had to face those tough decisions yet. They’ve been living irresponsibly for years but they don’t have to cut spending because the federal government is providing the cash to avoid being responsible.
Let’s understand what’s happened. The state and local governments are living beyond their means. It costs them much more to live than they earn, but they haven’t taken steps to reduce spending. The federal government is sending cash to state and local governments to stall the day of reckoning. They’re putting off the hard choices required to make them solvent. The federal government is sending money that it doesn’t have to allow the local governments to put off the tough decisions to look out for the best interests of the tax payer. We’re using one deficit to fund (compound) another deficit.
Doesn’t anyone recognize how stupid this is. They’re spending federal tax money that doesn’t exist to allow state and local governments to continue to spend beyond their means. A Ponzi scheme makes more sense than this and our Federal Correctional Facilities are filled with people who tried to make a living on Ponzi schemes.
A Ponzi scheme is a fraudulent investment that pays returns to investors from their own money or money paid by new investors, instead of from actual profits. The system has to collapse because the earnings, are less than the payments to investors. A Ponzi scheme at least pays back some of its investors, until the money runs out. This federal deficit-go-round is taking a deep federal hole and allowing it to get deeper and wider with the state and local deficits.
They’re debating whether they should be passing more of this sort of stimulus. The hole that they’ve already dug is too deep as it is, please stop digging. The only positive side to this debate is that the same elected spendthrifts who voted for this lunacy before are afraid of the upcoming elections. They same people who voted for several very stupid spending bills are now afraid of how the voters will react to more stupid spending bills.
That’s a good thing. They should be afraid of the voters. They’re there to look out for us, and so far they’ve done a terrible job. The big question is will their voters forgive their treachery up to this point. Up to this point the elected spendthrifts allowed their party leaders and the special interests to tell them how to vote with no respect or regard for the taxpaying voters. Now that we’re closer to the election and more voters are paying attention the elected spendthrifts want to start looking out for the best interests of the voter.
Too little too late.
Vote the Bums Out,