Monday, April 6, 2009

Obama-Geithner Bailout = Disaster

I am not a financial expert, so I do not expect anyone to take my word for it that the Obama/Geithner/Congress bailout plans--aka the stimulus bill--are bad new for the American taxpayer.   Perhaps you will believe Peyton Young, who is James Meade Professor of Economics at Oxford and a Senior Fellow at the Brookings Institution.  Also, he is British, not Republican, so he can be trusted.   Please read his linked article from the Financial Times.    While you are at it, read "Don't Eat Wall Street's Big Fudge," by Francesco Guerrera.


RKL said...

When they have to raise taxes to pay for all this spending, that's the time to watch out. The problems we have today are nothing in comparison to what's coming.


akates said...

I'm confused again. Taxes are government spending, are they not? I mean, that's what they're for, right? That's why people in better school districts pay higher taxes (non-represented DC notwithstanding) right? We should have been taxed more when we went into Iraq, because it costs money, right? But, we weren't (or, at least, the upper crust wasn't) and now we're in debt.

But, nobody should ever be taxed for anything? And the government should never exercise control over anything (except religion, stem-cell research, and would-be free speech)? That sounds like anarchy to me. But, wait - it's extreme leftists who are anarchists, right? Maybe y'all should get together and work something out. What a party that would be.

RKL said...

Akates: Here's a simple way to look at it.

When the economy is going well as it was through must of the Bush years, tax revenue goes up because more people are making and spending money.

When the economy is going badly as it is now with unemployment rising and people reducing their spending, tax revenue goes down.

With that in mind, in this downturn the fact that our government is wastefully spending money like there is no limit can only lead to more taxes to make up for it in the future.

Also note that the government wants to add entitlement spending for their pet projects like National Health care and the like. Those kinds of changes will crush our economy. Hide and watch if they get those entitlements passed.


Desman said...

Dont forget to read the two linked articles.