Economic Policy: Spend Ourselves Rich

by CJFosdick on February 21, 2009

NYC: National Debt Clock
Image by wallyg via Flickr

Recently, I heard a Democrat say that for every $1.00 we spend in the stimulus package, America will get back $1.50, with an added quote, “Spend ourselves rich.” It is like borrowing the money from one part of the economy to spend on another part of the economy. Right now, the bill has been passed and Obama has signed it Tuesday, 2/17/09. You know, the magical Tuesday where “Doomsday” would have occurred if the bill weren’t on his desk by this date. It is and we can all give a sigh of relief.

Or can we? Let’s examine this Economic Policy:

Wife: (paying monthly bills) “If we buy food for the month, we won’t have enough money to pay the mortgage.”
Husband: “I know. We’ll put the mortgage on our credit card. The Democrats say this will work and we should end up with half again as much money as we started with.”
Wife: (Unprintable) Then, “And how do you propose to pay off the credit card next month complete with the interest it will accumulate? We’ll have even less money then.”

I don’t know where the Democrats took their economy classes, but every sane, thinking American knows this won’t work. We cannot spend more borrowed money with no collateral, and get rich. THE WAY I SEE IT, THIS IS EXACTLY WHAT GOT OUR FINANCIAL SYSTEM IN SUCH DIRE STRAITS, LENDING MONEY TO PEOPLE WHO CAN’T PAY IT BACK, ESPECIALLY WHEN IT IS MORE THAN THE COLLATERAL THESE PEOPLE HAVE TO BACK THE LOAN. OUR ECONOMY FELL because of such policies.

So now, America is planning on spending money we don’t have with no security to back up the $1,000,000,000,000.00 loan we are getting from the American people. This money HAS TO BE PAID BACK SOMEHOW, SOMETIME! So where will we get the money now? We can no longer depend on China to buy this loan, because they, with good reason, feel the American dollar is going to deflate. We can print more money, which I guess is being done, but flooding our economy with paper, not even backed by gold anymore, has got to cause uncontrollable inflation. Those of us old enough remember the out-of-control inflation of the Carter years; we know how hard it is to survive with such terrible price increases.

Also, we know, that in recent months, there has been creeping inflation. Everything rose in price — even small things, like making toilet tissue rolls a quarter-inch thinner, adding more package and less contents, more water and less tuna fish, and hiking the price of gasoline at the pump while prices for a barrel are declining. And my husband read just yesterday in an area newspaper that food prices are going up. AGAIN!

Let me emphasize, WE CANNOT SPEND OURSELVES RICH! THE ONLY WAY TO PAY BACK THE BORROWED $1,000,000,000,000.00 IS WITH HIGHER TAXES. In the words of another Democrat, “I don’t know if this will work, but we have to do something.” AMERICA NEEDS TO RETURN TO CONSERVATIVE ISSUES OF SPENDING LESS AND MAKING WHAT WE SPEND DO MORE GOOD.

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