Dow Jones Down 4.6% on Tuesday
The Down Jones Industrial Average fell 382 points today, or about 4.6%, after the “stimulus” package was passed by the U.S. Senate. Now the House must reconcile their proposed $819 billion in “stimulus” spending with the $838 billion approved by the Senate today. We need to do something to help the economy, but a hurried “all or nothing” approach is baffling to many Americans.
Combined with the second phase of the Troubled Assets Relief Program (TARP), which will be the news tomorrow, future generations of Americans are being burdened with unprecedented debt. Some, like Senator John McCain, and House minority leader, John Boehner, have called this huge debt “Generational Theft.” What good will an education be if the country goes broke?
The exact amount of this new sudden debt, which can be blamed on both Republicans and Democrats, is not known, but will be staggering:
The two TARPs and the “stimulus” would commit taxpayers to $2.53 trillion in new debt in less than six months. That’s more than the entire government spent in 2005.
The July 2008 U.S. population was estimated to be 304,059,724. The “fair share” of this $2.53 trillion debt (which likely could grow to a larger value) would be about $8320 per American. Do you want to take on $8320 in new debt?
For Kansas with 2,802,134 people, the total new debt for all Kansans would be $2,801,134 * $8320 debt/person = $23 billion. As the people of Kansas, do we want to take on $23 billion in new debt?
An IRS web site shows that in 2006 there were only 181,770,971 exemptions for taxpayers, which should be approximately the number of taxpayers. Sharing a $2.53 trillion debt among 181 million taxpayers, gives a debt burden of $13,900 to each taxpayer. How is this not generational theft?
What is the plan, and why the rush? Certain steps could be taken to address specific problems, but the “all or nothing” stimulus vote was perplexing. Why are our representatives in Congress so eager to vote on a “stimulus” when it’s not even clear what’s in the bill?
President Barack Obama today claimed at a “town hall” meeting in Florida there was no “pork” in the stimulus bill. But even the left-leaning Kansas City Star said “Slash the pork in the Senate stimulus bill.”
Stuart Varney, substituting for Neil Cavuto today, discussed “Stimulus Pork – Fact and Fiction” (see the video):
Also, some news sources are starting to reveal a huge political health care plan as part of the “stimulus.” Where is the “transparency” and the debate on this controversial proposal?
Bloomberg reported Ruin Your Health With the Obama Stimulus Plan and described how one part of the “stimulus” may result in health care rationing, and government involvement in both medical records, and how a doctor will be allowed to practice medicine.
Former New York Lt. Gov. Betsy McCaughey appeared on CNN’s Lou Dobbs Tonight and Glenn Beck to explain the dangers of socialized medicine as part of the stimulus.
The left-leaning Media Matters for America objected to McCaughey’s statements on Lou Dobbs and Glenn Beck but fails to explain why socialized medicine in an imperative for an emergency economic stimulus. Media Matters fails to explain why national health care is buried in the stimulus bill as “IT infrastructure” when the intent can be far reaching. Media Matters fails to explain why national debate on this subject is being short-circuited as part of the stimulus “emergency.” Where is Media Matters explanation that about 30% of the stimulus is for spending in 2011 or later. How does that help with jobs now?
Privacy of medical records has been a hot topic in Kansas, but where is the outcry of letting the government have access to our medical records on a routine basis (without a subpoena or court order), and government guidance for how a physician may practice medicine? Will we see new “Snoop Dog” ads in Kansas paid for by non-profits against the “Stimulus” as our medical records may become government records?
The TARP program is as controversial as the “Stimulus.” Unbelievably, banks can request billions in assistance by filling out only a two-page form, “Application for TARP Capital Purchase Program (CPP)” (after digesting four pages of instructions). Why are individuals burdened with pages and pages of tax forms by the IRS to pay taxes, when bankers can get billions of tax dollars with only a two-page form? TARP has become a four-letter word.
The Clay Center Dispatch revealed (but no other Kansas newspapers?) the Kansas banks receiving TARP funds:
The program includes six banks in Kansas, 359 around the U.S. … Kansas banks receiving funds under TARP reported include:
Fidelity Financial Corp., Wichita, $36.282 million
Blue Valley Bank of Overland Park, $21.75 million
Morrill Bankshares, Merriam, $13 million
United Bank and Trust, Marysville, $8.95 million
Equity Bank, Wichita, $8.75 million
American State Bancshares, Great Bend, $6 million
Why can the government and business be so irresponsible when as individuals we must deal with reality? I have not received a pay check since Oct 31, 2008, and it’s impossible to find work that I had been doing. My family has had a spending freeze in place since September. Why if individuals and families must be responsible, do we tolerate irresponsibility by our government? If I have no income, how can spending a huge amount of money help me or my family?
President Obama recently referenced the “successes” of FDR after the Great Depression. When he was alive, my dad explained my grandfather said he had voted for FDR once, but never again. My grandfather was saying many of FDR’s actions delayed the recovery then (like our government is doing now), but we don’t seem able to learn from history.
Related:
- No$timulus.com: Fight special interests that want to take your money, Americans for Prosperity.
- Nostimulus.com passes 200,00 mark despite Senate passage of Spendulus, KRA Blog, Feb 10, 2009.
- The Moral Bankruptcy Behind The Bailouts, The Bulletin (Philadelphia), Feb 10, 2009.
- Iceland goes bankrupt: New government formed as a result of economic troubles, Ke Alaka’i and the AP, Feb 9, 2009.
- Equity gets $9 million Treasury infusion, Wichita Eagle, Jan 31, 2009.
- Bank of Blue Valley: Weak Bank, Unusually High CD Rate for Three Days, Kansas Meadowlark, Jan 27, 2009.
Tags: Debt-Stimulus, Kansas banks, TARP
