News broke today that President George W. Bush is considering an economic stimulus package. It's irresponsible of President Bush to implement such a plan. President Bush has been a far superior President than Clinton ever was, in every way. To do such a thing would tarnish his record. He inherited a recession from Clinton due to tax rates that were too high and over speculations in the market. To date, he has done a pretty solid job of letting the free market reign, and his tax cuts are a major reason why a recession has not started since he took office. It's basic economics that when a tax increase is implemented against what Liberals declare as their enemies, that being corporations and high income earners, the impact is directly passes onto the middle and lower classes as they simply will not absorb a tax increase. This is an inflation tax. As the cost of production rises prices rise. The rich do not feel the impact of this, the middle and lower classes, however, most certainly do feel this impact. This basic logic is lost on the Left.
Among some of the problems with the economy today is the sub-prime market, in which irresponsible lenders, and irresponsible borrowers, have cost the economy dearly. There should be no bail out, there should be no hand-out, the market should be allowed to self correct. By providing these groups with tax funds taken from every individuals' earning, all people are learning is that irresponsible behavior will be rewarded. That's not to say some hardworking, honest people are getting beaten down, but the great majority of those in this market knew exactly what they were getting into. Another reason given is that of rising gas prices. See my previous post for my take on that.
On Wednesday, the Club for Growth release a study that proves that the market under performs when Congress is in session. A so called "stimulus" package that President Bush would put forth would do far more damage than good. First, our deficit is entirely too high, a "stimulus" package would result in a larger deficit. President Bush has done a good job of shrinking the deficit since our government began to run one due to discretionary spending due to the War on Terror. Second, government spending has a very, very, very poor record on actually being effective on what it is used for. Third, Americans need more empowerment to control their own destinies rather than less.
Unless this "stimulus" package would be a drastic reduction in government spending, coupled with a slash in tax rates, it will do far more harm than good. By reducing government spending and cutting taxes, two positives will be achieved. The first positive will be a reduction in deficit spending which will strengthen our dollar. The second positive, by cutting taxes, will be positive for the American tax payer, who is grossly overburdened, and who will have more disposable income and help offset the increase in gas prices. By restoring American citizens to a higher level of income, reducing the inflation tax, and strengthening our dollar, every one will be better off. It is completely mind boggling that President Bush would even consider for a microcosm of a second to follow a plan that would pursue the exact opposite positions and more than likely plunge us into a recession, one the media, and of course, the Liberals have been hoping for just as much as they have been hoping for Iraq to be a failure (old article, as it has long been their sick hope). Hopefully, with the same resolve that President Bush resisted the Liberal love-fest for defeat in Iraq, the Economic lunacy they are seeking will be avoided and turned into a great victory for America.