Posted by
Tom L. on Thursday, February 05, 2009 6:00:00 AM
The “Inter-Generational Wealth Transfer Act” aka “the Stimulus bill” needs a complete rethinking.
The Framers of the Constitution intentionally designed a central government that was slow. They saw a power that could respond quickly as a threat to liberty.
They were right and wrong. Even under the most dire of circumstances, for example the Japanese attack on Pearl Harbor in 1941, the government could not mount a serious response for almost two years.
Because of this and the timing of November’s election, the Federal government has been slow to response to the economic crisis. Now, as they are planning another response, “the Stimulus”, they are already too late.
While much pain is being and will be endured, the crisis has to some extend passed and to another extent evolved. Look at Goldman Sachs already planning on repaying the government, or the drop in home prices which has caused a predictable increase in home sales.
Government deficit spending is not needed; it risks inflation and is just a transfer of wealth from the future (GenX and GenY and their kids) to the present (mostly baby-boomers).
What Congress should pass and the President sign is a bill providing the Federal government with the tools it may need in the future to quickly address an economic crisis. This could include provisions for government spending, but not specific spending now. It should be written so that the President would have certain authorities, subject to an up or down vote by Congress on enacting each as the President requests.
It is time to rethink the “stimulus” bill.