So I saw a headline last week. It said, “Jobless report shows urgent need for stimulus.”
I would have preferred to see a headline that showed at least a basic understanding of economics. Perhaps, “Jobless report indicates a return to sound business practices” or something like that.
But no. People are unemployed; therefore, the economy needs another “hit.”
If this particular reporter had been covering a rehab center, he probably would have come up with a really brilliant headline like, “Crack addict shows urgent need for stimulus.”
Withdrawal hurts.
People don’t like withdrawal, no matter if it’s withdrawal from addictive substances, pornography… or debt.
And that’s really what this is all about. The U.S. went on a debt binge. Other developed nations followed. And now that we’ve got a massive hangover from spending money we don’t have on things we don’t need, everybody is begging for stimulus.
Guess what?
Debt got is into this problem. More debt won’t get us out.
What caused the problem can’t be the solution, too. It just doesn’t work that way.
And yet the government continues to enable its citizens with more of Babylon’s wine. And as the drunk citizens stagger from their collective hangover, the politicians are at the ready.
“Oh, your head hurts? Have another drink!”
Government is totally clueless about economics.
If you really want to see this economy heal, then it’s time to accept the fact that all this debt has to be repaid: both personal and national debts.
Until then, we’re just extending the pain.
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I don’t think people get that 1) there’s no money available to stimulate the economy 2) it can’t even be borrowed.
It would be better if they were borrowing it. This printing of money carries the heavier debt of inflation. The only way to repay such debt involves “burning” money or replacing the currency.
@John – You’re absolutely right. In fact, it may be time for a new version of Fahrenheit 451. Except in this new version they’ll burn money instead of books. ;-)
I guess you could call this the “hair of the dog” for the economy :-)
@John – You’re right, this whole “stimulus” package is just diluting the value of the dollar. Unfortunately, the people who are most affected by the fallout are also the ones who turn to the government to solve their problem, creating a snowball effect.
The government needs to let businesses and people who overextend themselves fall flat on their face if there’s any hope of fixing the problem. All these bailouts and stimulus ideas are only deferring the inevitable, and every time they do it the end result is going to get worse, not better.
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