Obama signs monstrous stimulus; stocks tank

Posted on February 17, 2009



With a soaring speech outlining his hope for the new legislation, President Obama today signed the $787 billion stimulus package into law. Despite all the supposed optimism, the Dow dropped 300 points, reflecting pessimism on Wall Street that this bill will do any real good.

I have already railed so much against this pork-ridden non-job-creating legislation that I run the risk of repeating myself if I recount all that is wrong with it here. It has passed, and the money will soon be doled out – or I should say, the money will soon be borrowed or printed to dole out. The big beneficiaries here are the favorite spending programs of the liberal elite, not the American workers. The protests against it today have been amusing so far.

We ought to learn from the example of California, a state that has spent its way into oblivion and is now locked in a budget battle and can’t currently provide state tax refunds. Obama likes to talk about abandoning the failed policies of the past, yet a great deal of the stimulus funds are to be used to shore up states like California that have spent themselves into fiscal catastrophe, and yet their model is one that Obama continues to think will have success.

This isn’t the free market or capitalism at work, and it was obvious to many that Obama never planned to make sure those concepts were strengthened. In fact, along with a few Senate Republicans, he favors the Swedish model of bank nationalization to stabilize the financial sector. Nationalizing industries is by definition socialism, and his supporters during the campaign were fierce and quick to point out that Obama was no socialist, that his “spread the wealth” comments really didn’t mean the American people have anything to worry about. If he continues down this path toward a European socialist economic model, it will show how disingenuous Obama and his campaign were – if they thought a socialist model would fix the economic crisis, they should have said so. Instead, they falsely promised tax and spending cuts, because promising socialism doesn’t win you an election in America.

A note on the Swedish model: Sweden nationalized their banks, cleaned up the books, then auctioned them away. That means that, after nationalization, the Obama administration would have to give the banks back. I don’t know about you, but nothing I have seen in recent years gives me confidence that once government takes control, they will relinquish that power back to the people. After all, we are the uneducated unwashed masses; better that a comforting nanny state take care of all the pesky decisions for us.

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