Obama’s economic stimulus package will not work

23 Jan Obama’s economic stimulus package will not work

Barak Obama won the presidency because Republicans showed a lack of economic leadership. However, in his first days in office, President Obama is pushing a retread of the previous administration’s economic policy – the economic stimulus package.

Is this Obama’s idea of change? Let’s take a bad idea that didn’t work and do it again. An economic stimulus is just “hair of the dog.” A shot of whiskey doesn’t cure a hangover. It just delays the price one must pay for a night of heavy boozing.

America is hung over, after decades of spending more than we have. Where will our government get the $825 billion dollars to stimulate the economy? Since it will not be through raising taxes, it can only come from one place – the printing press.

So, as the government prints more money, what will happen to the money already in circulation? It will decrease in value of course, meaning inflation. However, I’m not talking about your run-of-the-mill inflation. I’m talking hyper-your little brother on sugar-inflation. Prices of everything will soar.

As a country, we no longer make stuff. We just buy and sell stuff, and if our dollar gets so devalued, will those countries that DO actually make stuff even want our dollars? Probably not, and the result will be fewer goods flowing into the country.

I know. I’m not an economist, I’m a bankruptcy attorney, but that means I now something about poor money management. I have represented thousands of clients who spent more than they had. However, they made the wise decision of breaking the cycle of economic stupidity by getting a fresh start in bankruptcy.

Rather than throwing money to the institutions that caused most of the problems in this country – the banks, hoping that they will all of a sudden become good stewards of our money, the government needs to entrust the American people with fixing their own problem.

One way the government can accomplish this is by passing the proposed bankruptcy amendment that will force banks to modify mortgages. This will require the actual printing of zero dollars. This will actually stop foreclosures. This will actually put the burden back onto the parties to this transaction – the lender and borrower.

While our elected officials chit-chatted yesterday about the pending bankruptcy bill, thousands more homeowners were removed from their homes. It is as if America is having a heart attack, and Congress is holding the defibrillator. Unfortunately, they can’t find the ON button.

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Chip Parker is the managing partner of Parker & DuFresne, P.A., where he represents Northeast Florida businesses and consumers facing bankruptcy, and homeowners facing foreclosure. His firm files more homeowners in the Mortgage Modification Mediation Program than any other law firm in Northeast Florida. Parker is the recipient of Jacksonville Area Legal Aid's prestigious Award for Outstanding Pro Bono Service. Mr. Parker is an active member of the National Association of Consumer Bankruptcy Attorneys and National Association of Consumer Advocates.
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