Posts Tagged ‘stimulus package’

2nd Stimulus Package

December 10, 2009

President Obama is pushing for a second stimulus package.  He seems to think that we can spend our way out of economic trouble. 

That would be fine, if we had the money to spend.  When we continuously borrow money to pay for our ever-increasing programs we are headed towards economic disaster instead of economic recovery.  Instead of adding to the deficit, in the hopes of recovery, we should be reducing our spending.  Our economy will recover on its own if we quit adding to the burden placed upon the business world.  When families overspend, they go bankrupt.  When businesses overspend, they go out of business.  What will happen if our government continues to overspend?

It won’t be good.

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What’s the Plan?

February 11, 2009

President Bush was severely criticized for not having an exit strategy for Iraq. 

What is the plan to pay back the debt that we are accumulating?  As our congress, pushed by our president, is about to pass legislation that will saddle us with yet another huge bill to pay, I want to know, what is the exit strategy?  How will we get our country out of debt?  Can we even pay the interest?  Before we sign for a loan, can we know the terms?  Where is this money coming from and how will we pay it back?  I don’t hear anything about those little details.

The current crisis in the banking industry has come about because banks made loans to people who couldn’t afford to pay them back.  The loans were bad for both parties. 

At what point are we as a country going to learn that we cannot borrow and spend our way out of our troubles?

At some point, families, businesses, and yes, even countries, must realize that they need to make changes.  They must make hard choices.  They must work on a budget.  They need to make more money than they spend. 

What is the cost?  We are going further into debt by astronomical numbers, lead by our president who proclaims that this is the way.  One thing about debts, they do not just go away.  Sooner or later you have to pay the bill.

Can a country declare bankruptcy?  What happens when the creditors demand payment and we don’t have the money?  Who are the creditors?  Isn’t one of them China?  Does anyone else think it is a bad idea to be deeply in debt to another country?  Especially a communist country? 

What is the exit strategy?