More Government Bailouts/Programs/Incentives, Less & Less Results
CNBC is reporting that the spring outlook for housing is getting worse and worse. Furthermore, the White House has announced a new $14 billion (do we even pay attention to these numbers anymore?) program designed to provide aid to people facing foreclosure – I knew I should have bought that pair of jetski’s instead of paying my mortgage last fall!
Is anyone else surprised that multiple years into the recession, after pulling out all the stops in terms of bailouts, that we are still needing more programs amidst more bad news? Just a refresher, let’s list the government programs/bailouts:
- TARP – $700 billion
- Stimulus bill – $900 billion (If you were tasked with the goal of wasting $900 billion, I don’t you could design a better plan than the stimulus bill – this should be border line treason. Yes I’m serious.)
- Bailouts and pretty much government take-overs of GM, Chrysler, AIG, Fannie, Freddie, etc.
- Programs like cash for clunkers, home buyer tax credits, etc.
- I’m probably missing several others, but you get the point
So, now we need another $14 billion. It’s only $14 billion! Excuse my while I throw up on my keyboard.
The reality is that I don’t need to tell you how stupid this is. All you need to do is look at the following chart.
The above chart is circling around the internet, and it shows that for every additional dollar in debt, the added productivity or impact to our overall economy (GDP). We’re reaching or have already arrived to the point where there is zero or negative impact to each additional dollar of debt. This isn’t political rhetoric or anti-Obama stuff. This is economic fact. If you’re still a believer in more stimulus and more government programs after seeing this chart, then you’re clueless and I guess you should just go navigate over to some celebrity gossip website because what’s the point?
And if you’re argument is, well, they’ve got to do something! Yes, that something is basically the opposite of everything they’ve been doing (google George Costanza the opposite for a good example).
Oh, and you’re buying stocks right now?