An Interesting Article on the Stimulus--One Year Later

I'm not trying to get political at all here...the reason I'm posting this is because it actually explains what happened to everyone's tax returns that we were all complaining about the other day...and it makes for an interesting read.

Thoughts?

Government Stimulus, One Year Later
By Ron Paul
View all 55 articles by Ron Paul
Published 02/23/10

Printer-friendly version

Last week marked the one year anniversary of the American Reinvestment and Recovery Act, or the stimulus bill, passing into law. While the debate over its success has been focused on whether or not it is stimulating the economy and on various questionable uses of funds, in my estimation this legislation is accomplishing exactly what it was intended to accomplish -- grow the government.

Those of us concerned about the ever increasing level of government debt gasped at the astonishing $787 billion cost estimates for this bill. True to form it has actually cost 10 percent more at $862 billion. We heard over and over that government could not sit around and do nothing while people lost their jobs and houses. The administration claimed that unemployment would not go above 8 percent if the stimulus bill passed. Now, a year later, the government estimates that unemployment is over 10 percent. The real number is closer to 20 percent. It appears that those promises were total fabrications in order to close the deal.

In any case, the American people know that more government spending obviously equals more government. If the goal was to strengthen the private sector, Congress would have allowed businesses and individuals to keep more of their own money through meaningful tax cuts. Outrageously, the administration claims that they did "cut taxes" by reducing withholding, and that they have stimulated the private economy by increasing the amount of money in every worker's paycheck. What they fail to mention is they did not change the total amount of taxes due. This means that all that money not withheld from paychecks will add up to a big unpleasant surprise when returns are filed this year. Many tax preparers are already seeing shocked taxpayers having to come up with big checks to the government when they normally expect a refund. Stimulus, indeed!

The administration also claims that thousands of jobs have been created or saved by this massive spending bill, but these are just more government jobs, and counterproductive in the long run. Funding for the public sector necessarily comes at the expense of an overtaxed private economy. But, it makes sense that government would seek to expand its payroll since every new bureaucrat becomes a likely advocate for big government, when an increasing number of Americans are demanding the opposite. But the more the burden, the closer the government parasite comes to killing its host.

Rather than learning the lessons of the past year, the administration is moving full-speed ahead to do even more economic damage. With the stimulus bill set as a precedent and victory declared, another "jobs" bill is in the works. And, in order to address the unavoidable issues of our massive deficit, the administration has named a bi-partisan commission to find ways to decrease it. Tax increases on the middle class are notoriously back "on the table", exposing that campaign promise as another instance of merely saying what the people wanted to hear. If the obvious solution to our spending problems was seriously put forth, that is, getting back to the constitutional limitations of government, I would be shocked. More likely, this will be a tactic to increase taxes and spending in a way that passes the political buck.

Re: An Interesting Article on the Stimulus--One Year Later

Oh, he is so right - really hit the nail on the head.

Unfortunately, I don't feel that "I knew it, I told you so, HA!" feeling I thought I would feel (well, a year ago I thought I would feel that way when I knew this kind of stuff would happen). I actually feel really depressed and sad.

Because, it isn't funny and it isn't about being right anymore. Whether I'm right or wrong doesn't make me feel better - because it is going to end up hurting our Country and our people. It really suucks.

We are in bad shape. We need Reagan and he's dead. Big Government - BAD Government.

Re: An Interesting Article on the Stimulus--One Year Later

I don't think they truly have the American people's best interests at heart. Its a heartbreaking article.

Between this and the healthcare fiasco....I give up.

Re: An Interesting Article on the Stimulus--One Year Later

Re: An Interesting Article on the Stimulus--One Year Later

of course Ron will feel that way. I agree with a lot of things Ron has done, but there's another viewpoint:



Stimulus - One Year Later
by Mark Silva and updated

One year after the signing into law of a $787-billion economic stimulus bill, Republicans still are asking, 'Where are the jobs?' -- while Democrats accuse the GOP of enjoying the benefits of the act back home even as they complain about it.

"Republicans don't want to acknowledge that the recovery act has created jobs -- many of them in their own districts," a Democratic National Committee Web-ad says today. ""Except when they're asking for funding to create those very jobs."

The DNC claimed this week that as many as 93 Republican lawmakers have claimed benefits from the stimulus in their states or districts after having voted against the package. The ad targets three senators -- Minority Leader Mitch McConnell (R-Ky.) and Sens. Richard Shelby (R-Ala.) and Saxby Chambliss (R-Ga.) -- and House Minority Whip Eric Cantor (R-Ala.) for alleged flip-flips on the recovery act.

McConnell contends that, with unemployment still near 10 percent, the White House has fallen short of its initial predictions that joblessness could be reined in below 8 percent by this stage in the recession recovery.

"In the first year of the trillion-dollar stimulus, Americans have lost millions of jobs, the unemployment rate continues to hover near 10 percent, the deficit continues to soar and we're inundated with stories of waste, fraud and abuse,'' McConnell said today. "This was not the plan Americans asked for or the results they were promised."

McConnell's office also says "the DNC ad gets it wrong on McConnell. He has talked about funding for the Bluegrass Army Depot for their efforts to destroy chemical weapons,'' a perennial issue for the senator. It was funded tthrough the 2010 fiscal year military construction budget, his office says -- not the stimulus bill.

"The DNC's research department isn't perfect,'' McConnell's office suggests.

(Actually, neither is McConnelll's statement entirely on track: The deficit which the White House predicts for 2011 is somewhat smaller than the record projected this year, with an added projection that it shouldl be cut in half by 2013.)

The White House and supporters of the act contend that, in addition to the far-reaching tax relief that the act provided in its first year, more than 1 million jobs have been created or saved -- 595,000 during the last quarter of 2009 -- and that the climb out of recession would have been much more gradulal without it.

The Gross Domestic Product has grown significantly during the first two quarters of an economic turnaround from a recession that started in December 2007. The White House acknowledges that unemployment will remain high this year.

The public, for its part, has seen a lot of road signs touting the work of the American Recovery and Reinvestment Act in fixing roads and bridges, but a CBS News New York Times poll finds that few believe the act has created jobs.

The White House is seeking a new job-creating act, with $100 billion in tax incentives for investment in small business and credits for those that create jobs.

The stimulus act was passed without any Republican votes in the House and two Republican votes in the Senate. The president signed it into law on Feb. 17, 2009.

Re: An Interesting Article on the Stimulus--One Year Later

Ron Paul is right on the mark, spending is out of control and the true unemployment number is closer to 20%

Shame he wasn't a little more sane, he'd make a great candidate for office.

Re: An Interesting Article on the Stimulus--One Year Later

Re: An Interesting Article on the Stimulus--One Year Later

Saving the jobs of police officers, teachers, firefighters and health care workers, all public sector, was a very bad idea. I wish I could take back my vote because John McCain would have done a much better job, especially with Sarah Palin's expertise.

Re: An Interesting Article on the Stimulus--One Year Later

Re: An Interesting Article on the Stimulus--One Year Later

Re: An Interesting Article on the Stimulus--One Year Later

Re: An Interesting Article on the Stimulus--One Year Later

Message edited 2/23/2010 5:07:33 PM.

Re: An Interesting Article on the Stimulus--One Year Later

My non-snarky response: My own position was not created by the stimulus bill, but ALL teachers are impacted when teachers get laid off. I'd have 36-38 kids in my class if my principal had had to lay off teachers. So I benefit, as do my fellow teachers, as do the students who attend my school (500+ kids).

So that aspect of the stimulus worked. Multiply that number by I don't know how many- I think something like 250,000 teaching jobs were saved- and I can't calculate how many kids benefit. My kids are at a disadvantage as it is and I am glad they don't have to suffer more because of the greed of Wall St. AND problems in previous administrations (of BOTH parties).

And I absolutely stand by my vote- without getting more political myself- but IMO you can't post something like this, about something that raises a lot of heat in a lot of people- and written by a former presidential candidate- WITHOUT it getting political.

Re: An Interesting Article on the Stimulus--One Year Later

Re: An Interesting Article on the Stimulus--One Year Later

Ron Paul's view would have been this way before the election.

It is hard for me to put much weight on something so one-sided (regardless of the side).

I would prefer a view from a non partisan site--maybe the BBC...or something...not Ron Paul, because to me it is biased--regardless of any truths within..JMO

Re: An Interesting Article on the Stimulus--One Year Later

Posted by DaniRella

Oh, he is so right - really hit the nail on the head.

Unfortunately, I don't feel that "I knew it, I told you so, HA!" feeling I thought I would feel (well, a year ago I thought I would feel that way when I knew this kind of stuff would happen). I actually feel really depressed and sad.

Because, it isn't funny and it isn't about being right anymore. Whether I'm right or wrong doesn't make me feel better - because it is going to end up hurting our Country and our people. It really suucks.

We are in bad shape. We need Reagan and he's dead. Big Government - BAD Government.

Re: An Interesting Article on the Stimulus--One Year Later

In the public sector, I wonder how much LONG TERM good it has actually done.

Yes, it did save jobs at my school last year, but this year is an entirely different story. There is a 4 million dollar gap at my school. Numerous layoffs are inevitable. Programs (sports, clubs, summer school) are being cut left and right. AP classes will also be few in number.