Only about 11% of the $787 billion in stimulus funds have been spent to date, yet some members of Congress already want a second stimulus package. How nice for them.
Democrats, led by Vice President Joe Biden are busily explaining that the stimulus will take time to create an impact. That’s fair. Republicans point out that unemployment is at 9.5%. The administration claimed that the stimulus package would keep unemployment below 8%. That criticism is also fair.
Democrats claim that with only 11% of the money spent the great results are yet to come. Republicans argue that the money should be going out faster.
We the People should vote all those clowns out of office.
The U.S. and world economies needed stimulus. The right kind of stimulus. President Obama correctly said that the U.S. needed trickle up, not trickle down stimulus. But our president and congress gave us a trickle down stimulus plan.
According to Wikipedia; “Trickle-down economics” and “trickle-down theory” are terms of political rhetoric that refer to the policy of providing tax cuts or other benefits to businesses and rich individuals in the belief that this will indirectly benefit the broad population.
“Other benefits” in our current situation is the large sums of cash that are being sent out. “Businesses,” in this case, are government agencies that will spend the money the same way a business would (though far less efficiently).
The trickle up effect is an economic theory used to describe the flow of wealth from the poor to the affluent; it is opposite to the trickle down effect.
The U.S. needed a jump start, a sudden jump in production, or a sudden inflow of cash to the middle class. That could have and should have been accomplished through a major tax holiday – a suspension of all taxes for 3-4 months via an end to withholding for that period. That would have been a sudden inflow of cash that would have jump started our economy through a sudden jump in production. We could have been well on our way to economic recovery by allowing people that desperately need the money they earn to keep the money they earn.
Instead, we went for trickle down stimulus sold to us by a guy claiming it was trickle up and so we have created 150,000 jobs at $360,000 per job.
We all know the people with those 150,000 jobs aren’t getting more than a fraction of that $360,000. Anybody wondering what happened to that money?
The answer: It got used up “trickling DOWN” when what was and still is needed is direct relief that… trickles UP.
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