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Posts Tagged ‘bailout’

You won’t here me say that all too often. But today’s WSJ headline is right about one thing: America will suffer a ‘Lost Decade’. Of course that is if you accept that the definition of ‘Lost’ means zero economic growth. 

He is also right that recent Republican programs have not helped the situation. Those programs were wrong for the very same reason his program is wrong – they irresponsibly expanded government. His program isn’t a change from the poor practices of the last several years – they are a massive magnification of them. Isn’t it a bit like saying a bottle rocket is a bad idea but here use this intercontinental missile.

I fully agree with most economist that economic growth is a good thing. But few, other then seemingly most politicians in D.C., would argue that economic growth must occur at all costs. Economic growth should not be pushed beyond fiscal responsibility. Is Obama’s argument really: Now that American consumer’s are completely overextended it is time for the government to step in and become even more overextended then they were? Wait isn’t that what got us into this mess?

When you analyze the so called economic stimulus plan you realize that it will have no effect on the ‘Lost Decade’, all it will do is hyper-overextend the American Government. Do we really want to take our already overextended government and push it beyond all hope of recovery? Let’s incur such massive debt that there really is no way out? This philosophy seemed to work for the average American consumer, just when they couldn’t possibly borrow another penny to spend, the government jumped in to help ‘rescue’ them. But I want to know, after the government does this, who is going to ‘rescue’ them? Wait, who is the government again?

Look, we grew too fast by relying on massive debt. It is time to return to responsible fiscal policy. Instead of looking at it as a ‘Lost Decade’ let us look at it as the decade America got its act together. Otherwise a ‘Lost Decade’ will be the least of our worries. The bailout won’t prevent a ‘Lost Decade’ it will push a ‘Lost Country’ over the top.

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