Friday, February 27, 2009

The Shape of Things to Come

Tuesday, 2/17/09, President Obama signed into law his economic stimulus massive spending and federal government expansion bill, and our country embarked on its journey toward failed European-style democratic socialism.

One fun aspect of the debate over the bill was how "bi-partisan" came to mean "agree 100% with the other party" rather than the former meaning of "both parties compromising to something they both could live with".

Another fun aspect was that "I'm open to other ideas" seems to actually mean "My mind is already made up, so don't bother me with ideas I don't already agree with".

The next four years are going to be awesome.

Speaking of awesome... Two years ago (2006) our state's governor was up for re-election. She was telling people that they should vote for her because, if they did, then the next four years would be really awesome. In 2008, our state had the highest unemployment rate of all states in the country (according to Michigan's Labor Market Information site, unemployment was over 10% in December 2008). Awesome.

By the way... If the Democrats had really wanted to stimulate the economy (as opposed to what they did do... fund all their pet pork projects), here are some things they could've done instead:
  • reduce, if not eliminate, the capital gains tax
    • stimulate investment in the economy
  • reduce corporate taxes while also eliminating all the crazy exemptions
    • simplifies the tax code for businesses
    • reduces the cost of doing business in our country (Ireland only charges businesses 12.5% vs. Washington charging 35%)
    • Remember, business do not really pay any taxes. People do. We pay taxes for businesses when we buy their products/services. Which leaves less money for us.
  • reduce payroll taxes, what individuals pay, what employers pay, and what self-employed people pay
    • reduces the cost to employers of having employers (makes it less expensive to hire new workers, or keeping the current workers)
    • puts more money in people's paychecks
    • would help poor people, as EVERY worker pays payroll taxes
    • reduces expenses for small businesses and self-employed people
    • would immediately help people and businesses

Thursday, February 05, 2009

Understanding the Cost of Obama's Stimulus Bill

Sometimes it's difficult to conceptualize large numbers, such as one trillion dollars.

This might help.

Earlier this week, Senate Minority Leader Mitch McConnell said that, "if you started the day Jesus Christ was born and spent $1 million every day since then, you still wouldn’t have spent $1 trillion".

Want to work that out yourself?  Here's a simple (and very simplified) formula:

$1,000,000/day x 365 days/year x 2009 (assume Jesus was born in year one) = $733,285,000,000.

A little over $733 billion dollars, which is less than Obama's massive spending and debt increasing stimulus bill.  The version passed by the House of Respresentatives weighed in at $819 billion.