Why The Stimulus Had To Fail - Granite Grok

Why The Stimulus Had To Fail

It’s simple economics.  Government money comes from taxpayers.  The more government spends the more it relies on taxpayers to pay for its spending.  The less money taxpayers have the smaller the economy will be the fewer jobs there are, which means less income, less taxes, more debt. 

The stimulus, the huge budget bills, the massive deficit, is all debt created by the government to prop up whatever.  It could be unions, a specific kind of commerce, or to simply increase the size of government.  But it’s unsustainable and temporary.  That means that at some point the money runs out, you can’t ask for more, and you still have trillions’ in debt.  That’s where we are now. 

While the government was happy to spend money it did not have to prop up the market (and its special interests) when the private sector debt bubble burst, where is the money going to come from to prop up the federal government when the public sector debt bubble bursts?  Taxpayers who don’t have it.    

And there is not enough money in the economy now to sustain it because what little growth we have was derived mostly from printing and borrowing.  It was false growth.   When we default all the false growth created by trillions in democrat debt will collapse, any paltry number of jobs “saved or created” lost, every planned infrastructure project stopped, and every state that was dumb enough to rely on federal money to “balance their budget” (John Lynch and the NH dems come to mind) would be S.O.L. 

It’s simple economics.  Democrats embarked on an unsustainable path making the cash-cow of last resort (the US treasury)  into an anemic raisin.  

The only way to stop (or even slow it) it is to cut spending, cancel all the slush funds, stop relying on money that does not exist, stop handing out money we don’t have, and let people keep more of what they already earn.  It will take a while, it will still hurt like hell, but we might make it back from the brink.   

So what do democrats have planned?  Let taxes go up.  Add new taxes on energy.  Drive up the cost of doing business and the cost of living, which will reduce free market revenue and starve private sector job creation. 

The stimulus failed.  Every jobs bills failed.  And as long as laundering money through the federal government is the only game in town, it is only a matter of time before the bottom falls out.

Cross Posted At NH Insider