The Obama Administration pushed an additional $50 billion in stimulus spending over the weekend bailing out state and local governments for a few more months. By pushing money into the state and local governments, a few hundred thousand layoffs can be avoided potentially (again, for a few more months). In the game of political re-election, a few more months is often the goal. Of course, this does nothing for sustainable economic growth or the balance sheet of the United States, but who cares about that stuff?
This is another example of countless examples over the years of piling a “few billion” onto the debt for short term political gain. What’s a few billion when our debt is in the tens of trillions? Sadly, not much, but hardly the reason to keep going.
If we were to extend this concept into the home of a financially-strapped family, such a family would continue to re-finance their mortgage to get cash to pay for iPods and other things today. Yes, I know that was basically what everyone did for a few years, but that’s another story.
The huge dollar amount fatigue is definitely in place where we’re numb to $50 billion spending bills. How sad.
When the impact wears off a few months down the line, when the Census workers are all back looking for work, when the double-dip is firmly in place, what the will Obama’s answer be? Sadly, $50 billion or even $500 billion won’t do the trick then. The debt continues to grow, and the American economy continues to flounder. The choices are either austerity or hyperinflation. Obama? Choose austerity? Yeah, right. Got gold?