Saturday, February 7, 2009

The cliché of Obama's economic stimulus plan

ET while reporting Obama's stimulus plan says

"Much of the money would go for victims of the recession in the form of food stamps, unemployment compensation and health care."
(Economic Times)

Ok, so it is the proof of governments in influence of Keynesianism. First of all, the question is, why will a person opt to go for work if he is getting free health care, and unemployment compensation?

Now, some of the workers were getting huge salaries, can government provide them same salaries? No, it will provide some money based on minimum possible need program.

If it is not provided, may a person go for looking job of some other kind, he may innovate ways to cope with new situations, but government do not want him to think.

Now the question is, when Obama is proposing $819 billion stimulus plan, which may well go to 1 trillion, from where is all this money coming from?

1> government will publish new currency notes/Dollars.

In that case, government is not making any wealth, it will again increase inflation and things will remain as it is. No improvement.

2> Government may tax more on those who are yet working and earning. Ahh so what will it make? More poor, More hungry? How will a poor hungry man provide job to another hungry/poor man?

By doing so, Obama will just decrease the potential of Americans to provide jobs for fellow Americans.

Now the thing is, US is already in huge fiscal deficits, and debt. With new stimulus plan, Americans will be indebted with further huge deficits, which they will have to pay back somehow, otherwise more world tensions, and wars will take place, more terrorism will spread its wings.

In anyways, Obama's stimulus plan is going to take US further downhill to the oblivions of mystery, loot, slavery and socialism.

By the way, I heard a bill to be passed which suggests that American companies should remove foreign workers first rather than removing American workers, now that is protectionism, the American Patriot Economic plan. The thing is, by removing cheaper and better workers first, the entrepreneurs will not get any savings, and they will have to keep bearing the costlier and less productive American workers, that will further deplete American economy, a further blow towards the down hill.


Further read: threat of protectionism

And Economic Crisis and Fiscal Stimulus by Government

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