Economic stimulus needs to prioritize
New administration's plan will drive up our national debt
Lora Rae Anderson
Issue date: 3/5/09 Section: Editorial/Opinion
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One of the large criticisms of the stimulus plan is it will drive up our national debt.
When considering we are already trillions of dollars in debt, a couple billion more just doesn't seem like a big deal if it is guaranteed to benefit the American economy. The problem is the stimulus bill is far from guaranteed to cure our current economic crisis.
Much of the reason we are in this economic crisis is the "out of control spending" problem on the part of the government and the individuals in society.
The problem is not so much "out of control spending" as it is spending money we don't have. It has become part of the American thought process that it is alright to be thousands of dollars in debt. In fact, the average American household carries about $8,000 in credit card debt alone and personal bankruptcies have doubled in the past 10 years.
In considering that, it is hard for me to accept everyone is going to spend all of the money they gain from the stimulus package on consumer product. There is a good chance that at least some of these Americans will use the money from the stimulus package to pay off their debts.
If consumers do spend all the money they receive, it could potentially lift the economy a half a percentage point or more. If consumers don't spend their money and rather use it to pay off debts or loans, the economy could potentially go unaffected by the stimulus.
Even if paying off credit card debt frees up some spending, there is still no guarantee that anyone is going to purchase anything.
The worse case scenario is if consumers do start spending their money and the economy simultaneously begins to improve on its own, this would contribute to inflation.
This is not to say that the stimulus package won't work; but it is a huge risk - with your tax dollars.
As much as the Obama administration would like to control the market, it is still ultimately up to the people, as they choose what to do with their stimulus dollars.
The Bush administration has been tagged as being irresponsible with regards to spending and the Obama administration is not changing anything about that government habit.
As the government is in so much debt itself, it would be wise to try and be conservative with their spending, as that would at least set a positive example for the American people and get our economic culture back on the right track.
What is more troublesome than the idea of the stimulus package in and of itself is where a majority of the money is going.
Stimulus money is going into yet more government programs we can't afford. State and local legislatures were all allowed to make up "wish-lists" to defend what they were going to spend the money on.
Some admirable elected officials, including Republican Scott Walker, the county executive in Milwaukee, refused to make these lists because they do not believe we need this money as much as we need to re-evaluate our spending habits.
Some of these programs being funded include $2.1 million for the Center for Grape Genetics in New York, $1.7 million for pig odor research in Iowa, and $200,000 for a tattoo removal violence outreach program that could help gang members or others shed visible signs of their past.
This doesn't sound all bad until you consider where our money could be going instead, and then we start to ask ourselves a lot of questions.
There are students in schools across America who do not have enough money for books. There are individuals with developmental disabilities who need government support so that people can help take care of them. There are hardworking American citizens who are having a hard time finding jobs that can fully support their families.
These people all need legitimate support and we are spending our money on research for grape genetics and pig odor. That is what I prefer to call irresponsible spending.
Don't get me wrong, there is great value in learning about new things and pursuing new ideas, but not when we have to sacrifice the money and support that would rather go to American citizens who need it.
The truth is that President Obama has been known to use nice, positive words such as "hope," "change," and maybe even "economic stimulus package" to make what he is doing to the country sound legitimate.
As far as I have found, the stimulus package is simply a spending spree which supports the government programs our new administration values.
I just wonder why any money is going to some of these programs when we have things such as education and health care to worry about.
I am hopeful this administration will move forward and look to compromise and we can put this all behind us; but as of right now they need to re-evaluate their priorities for the betterment of the American people.
Anderson is a senior choral music education and political science major, chairman of the UW-Eau Claire College Republicans and guest columnist for The Spectator.



Viewing Comments 1 - 2 of 2
JDL
posted 3/05/09 @ 5:11 AM CST
If every penny of the money from the package were to go to credit card repayments, it would still benefit our economy. I for one, if pressed to choose, would rather burden the future with 3% government debt than with 22% credit card debt. (Continued…)
Bearclaw
Bearc1aw
posted 3/05/09 @ 11:12 PM CST
You know why I find it so hard to vote for a republican? Because it seems to be the party of "we are perfect; it's all the fault of someone else."
For example you don't see anywhere in here that Obama is trying to clean up Bush's mess. (Continued…)
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