- Written by Duncan
Everyone waits to see how Obama's $819 billion (now more like $900 billion) spending plan will work out. The White House-backed legislation includes an estimated $544 billion in federal spending and $275 billion in tax cuts for individuals and businesses.
Supporters of the plan contend that the vast majority of funds are aimed at worthy projects such as increasing energy efficiency, bolstering education, and rebuilding infrastructure. No mention was made of the secret alien bases in the arctic.
This spending plan as it is has some serious flaws. The plan would do too little for businesses racking up losses and individuals with declining or no income. People can't use tax incentives when they have no taxable income. And if you just give out cash rebates to individuals as was done recently, people either save it or use it to pay down consumer and credit card debt, which does little to stimulate the economy.
So far, the big winners under the plan are hedge funds and private equity and financial firms. They get to offload their risky positions on bad mortgages an debts. There has been no talk about reform or regulation to go along with these handouts.
Perhaps one of the funniest items on the table yet, the dairy lobby hopes to raise dairy prices by pushing for government payments to cull their cattle. If you kill enough cows, the price of milk will go up! Wow, it must suck to be a cow right now, being on death row like that.
Could we extend that to culling some lawyers, so that the price of legal services goes up? You might have to cull a lot of them before you see any changes, since they charge a lot already. Or perhaps cull some politicians to raise the price of hot air. There would be a secondary benefit, in that the amount of hot air over Washington, DC is a significant contributor to global warming. There is a potential to improve the environment at the same time.