Understanding the ‘stimulus bill’

Now that the so-called “economic stimulus package” has been signed, sealed and delivered, you’re probably wondering how it will work.

Well, here’s the theory behind it.

The government is going to hand out to select businesses, individuals, organizations and states about $800 billion over the next few years.

Question: Where does Washington get the money?

Answer: It gets it from you.

Question: You mean the government is giving back our own money?

Answer: Not exactly. That would be a tax cut or tax rebate.

Question: So where does the money come from?

Answer: Since there’s not enough money currently in the treasury to cover the handouts, the government borrows the money with the hopes of getting it back through future taxation. You will be paying more. Your children will be paying more. Your grandchildren will be paying more. In all likelihood, your great-grandchildren will be paying more – just for what was signed by the president last week. And that doesn’t even include future commitments to new entitlement programs that this bill has put into place.

Question: So why would that kind of spending by government stimulate the economy?

Answer: The government believes the recipients of this largesse will buy things – like big-screen TVs, appliances, cars, etc.

Question: But since so few of those products are made in the USA, won’t that stimulate the economies of foreign countries rather than our own?

Answer: Don’t worry, say the Washington elite. We live in a global economy now.

Question: Who makes the decisions about where the money goes?

Answer: Democratic lawmakers and a president, all of whom never read the bill.

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Question: If they never read the bill, how do they know it’s going to help stimulate the economy?

Answer: Democratic lawmakers and this president believe the economy is always stimulated by government spending, whether the government has any money or not. It’s an article of faith. That’s why they always want to spend more.

Question: How would taking money from the productive, job-producing sector of the economy and giving it to those who are not producing jobs stimulate the economy?

Answer: It won’t. In fact, it will slow the recovery that would take place cyclically anyway.

Question: Won’t Democrats pay a price at the polls in 2010 and 2012 if the economy is still faltering?

Answer: They should, but their game plan is to blame George W. Bush and the Republicans.

Question: Don’t they have a point since the recession began during Bush’s administration?

Answer: They sure do. Bush was a big spender, too. But, don’t forget, Democrats took control of the Congress in 2006. Congress is where all spending bills are approved. And Democrats presided over the housing and banking debacles – despite warnings from some Republicans.

Question: If Democrats and Republicans are both culpable for this mess, how can the American people fix it?

Answer: By getting off their butts, getting into the streets and raising Cain – just like the constituency of the Democrats does.

Question: But I have work to do and a family to support. How can I afford to protest and demonstrate and make noise like those people?

Answer: It’s getting to the point where you can’t afford not to, isn’t it?

Question: Is there any chance we can motivate the Republican Party to see the light and become a real alternative to the tax-and-spend Democrats?

Answer: Yes, but they really don’t appreciate how many people are thinking like you. That’s why grass-roots movements are critical right now. Don’t leave it to someone else to fix. America is supposed to be a self-governing nation. That means you are the boss. Elected officials are supposed to serve you.

Question: How can I learn more about what needs to be done?

Answer: I’m glad you asked. Read my book, “Taking America Back: A Radical Plan to Revive Freedom, Morality and Justice.”