The case against the Obama stimulus package
Democrats are trying to paint Republican opposition to President Obama's highly questionable stimulus package as simply more evidence that Republicans, like the Tin Man in The Wizard of Oz, have no heart.
In reality, there is serious doubt that more than 10% of the package will materially stimulate the economy. The size of the package, on one hand, is certain to increase our national debt exponentially (something tax cuts would be less likely to do). On the other hand, serious questions exist as to whether, if we're going to spend our way out of the recession, the Obama package is nearly big enough. Many economists believe that the American people will simply use whatever income is generated by the stimulus to pay down debt and save.
Even government spending won't stimulate the economy if it doesn't motivate the consumer increase consumption- to spend the additional revenue, and get it pumping through the economy. It's highly doubtful that the Obama package will lead him to do so.
Here's the case against the Obama package, made by Sen. Tom Coburn (R-Okla.).
ADDENDUM: According to the latest Rasmussen Poll, more Americans now oppose the Obama package than support it- and the greatest support is for a package consisting entirely of Bush-style tax cuts.
So much for the dire political consequences of the GOP's opposition to the Obama plan- and those TV ads urging Iowans to write Sen. Grassley and tell him to support that plan, rather than "the failed policies of the past-" which actually did stimulate the economy!
HT: Real Clear Politics
In reality, there is serious doubt that more than 10% of the package will materially stimulate the economy. The size of the package, on one hand, is certain to increase our national debt exponentially (something tax cuts would be less likely to do). On the other hand, serious questions exist as to whether, if we're going to spend our way out of the recession, the Obama package is nearly big enough. Many economists believe that the American people will simply use whatever income is generated by the stimulus to pay down debt and save.
Even government spending won't stimulate the economy if it doesn't motivate the consumer increase consumption- to spend the additional revenue, and get it pumping through the economy. It's highly doubtful that the Obama package will lead him to do so.
Here's the case against the Obama package, made by Sen. Tom Coburn (R-Okla.).
ADDENDUM: According to the latest Rasmussen Poll, more Americans now oppose the Obama package than support it- and the greatest support is for a package consisting entirely of Bush-style tax cuts.
So much for the dire political consequences of the GOP's opposition to the Obama plan- and those TV ads urging Iowans to write Sen. Grassley and tell him to support that plan, rather than "the failed policies of the past-" which actually did stimulate the economy!
HT: Real Clear Politics
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