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Wednesday, January 28, 2009

The Case For Doing Nothing

Many have been making it clear that this huge $800-900 billion stimulus plan will not help the economy because it does not address the origin of the problems to begin with.

News today includes the House Democrats stripping $200 million out of the proposed plan which would have refurbished a national mall..... this is the type of idiocy lawmakers were proposing taxpayers be responsible for paying.

So, it comes as no surprise when I see articles saying that the huge stimulus plan is doomed to fail if the original problems are not handled that put us where we are to begin with.

Here is the idea....DO NOTHING:

Instead of fighting over what should go in the economic stimulus bill, pitting infrastructure spending against tax cuts and contractors against contraceptives, they say lawmakers should be fighting against the very idea of any economic stimulus at all. Call them the Do-Nothing Crowd.

“The economy was too big. It was all phantom wealth borrowed from abroad,” says Andrew Schiff, an investment consultant at Euro Pacific Capital and a card-carrying member of the stand-tall-against-the-stimulus lobby. “All this stimulus money is geared toward getting consumers spending and borrowing again. But spending and borrowing were the problem in the first place.”

Washington has a habit of passing legislation in a crisis and suffering from morning-after regrets — the Iraq war, the Patriot Act and last year’s original bank bailout plan come to mind. So we thought it would be wise to air the views of the naysayers toward Washington’s latest consensus approach.

Finally, common sense.