The Victims of a Stimulus
Posted by jemartynowski on January 29, 2009
The stimulus package that has already been pushed through the House and is currently residing in the Senate is being praised by many Democrats and their allies for providing emergency relief to a struggling economy. They claim it is great because it is pumping money into the economy to give the private sector more wealth. What exactly is their basis for this thinking? They cannot magically create wealth. Are we that ignorant that we actually believe that they can?
The best description of what Barack Obama and his stimulus-pushers are trying to do is made by Dr. Walter Williams: It is as if they are taking buckets of water from the deep end of the pool and putting it into the shallow end, claiming it is making the shallow end deeper. There is no net gain for the American people. Is Barack Obama really that stupid? Of course not.
The move looks great politically because the people receiving the government spending are very visible, and they can be shown happily accepting this check with Obama’s signature attached. This money, though, wasn’t just magically created. It was stolen from you and me. Money is always spent more wisely in private hands, because it is our own money, not someone else’s. However, it looks good because the beneficiaries are very visible. You and I, who financed those things, are invisible.
They can say, hey, we just created 50 new jobs because we’re contracting a big infrastructure project. Maybe a new road or mass transit system. The contractors who receive the money will spend it on those new jobs and materials they need. Yay, magically-created new jobs.
But wait, what about all of the purchases we would have made with that couple million dollars? The things we would have spent money on, perhaps food or necessities, no longer goes to the grocery store. Now, there are millions of us buying a little less, and that adds up. Maybe now there are 50 or even more jobs lost from other things. The government spending did nothing.
Oh, and let us not forget that since they are the government they will not get the best deals. They will spend way more than a private individual ever would on things. So what’ does that add up to? A net loss for the American people. Thanks for that, government. Why don’t you go stimulate yourselves.