Sunday, August 22, 2010

Why do people blame Bush for this stimulus bill when this is due to the bad mortgages and CEO bad spending?

Also, please note, Bush is not the reason all this pork is in the bill. There are literally BILLIONS of dollars in this bill that WILL NOT produce jobs. You can thank the new president for this.Why do people blame Bush for this stimulus bill when this is due to the bad mortgages and CEO bad spending?
Bush got blamed for a hurricane, what else is new?Why do people blame Bush for this stimulus bill when this is due to the bad mortgages and CEO bad spending?
First of all, there's plenty of blame to go around. You can blame individuals who behaved badly in the system and you'd be right, but you've also got to blame the system that allowed such things to happen at such a widespread level and those who managed that system for the 8 years leading up to the crash certainly get a significant share of the blame.





Turning to the bill, which is looking forward, rather than back, it's pretty hard to spend money without creating jobs. Some spending creates more jobs than others, but most of it is beneficial to some degree. Most widely consider infrastructure spending to be the most stimulative, with about 30,000 jobs per billion spent. Experts expect tech jobs to have similar numbers, as tech is the new infrastructure. It's been examined pretty closely from a theoretical level, but this will be the first major test of that theory. Experts, including Geitner, who studied the Japan crises and other sever economic problems throughout the history of capitalism believe that spending on healthcare and education create as many jobs as infrastructure and are more necessary for the long term success of any major stimulus.





Education spending includes short term training and long term investment in mental capacity, which creates both short term growth in the industry of education, near term growth in productivity, and long term investment and growth, like the kind Ireland and Israel experienced in the last decade, due to world leading development of their smartest minds.





Healthcare spending also creates short term jobs in the industry, but the real impact is in saving the people money because they can't afford healthcare and taking one of the most expensive burdens of the employers, especially since that's a burden not shared by employers in most other nations.





Tax cuts are about the least stimulative thing in the program, but they do help in some areas and they are necessarily politically to get it passed. However, I am glad to see that they fixed the Alternative Minimum Tax, which both parties have agreed for decades needs to be addressed, but nobody wanted to spend the cash.
In Saul Alinsky鈥檚 book Rules for Radicals he states that it is far more affective to demonize an individual than it is to demonize a group or situation. That is why everything is the fault of one person according to the Left.

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