As a Rule, I Believe That Anything That Everyone Agrees On Is Probably a Bad Idea

Rolling like a steamroller through Washington, D.C., is the "economic stimulus" package that really won't do much to stimulate the economy. I mean, realistically, it's $150 billion dropped into a $13-trillion economy; how much can it do?

The answer is: a lot, especially if you're a politician up for re-election and you want to tell the folks back home I'm doing something. Call it "panic pork," more a placebo than actual medicine, doled out to calm everyone down and make a few friends.

The irony, of course, is that we're in the mess we're in because of excess debt, and the money Congress is about to pony-up will have to be borrowed so that our consumer-spending party can keep going just a little while longer.

The President, Republicans, Democrats and the pundit class are all in agreement. Have you heard anyone question "the economic stimulus package"? I haven't.

Which worries me. Things that everyone agrees on scare me, because more often than not the things everyone agrees on -- bell bottom pants, Peter Frampton, the USA Patriot Act -- end up being things that are regrettable.

Now we're all agreeing on borrowing money to provide minor relief for a debt crisis. Doesn't that seem just a little bit nuts?

UPDATE: Now the Senate wants to throw some additional money at retirees, as a class the wealthiest group in the United States. Entirely by coincidence, I'm sure, they're also the group that votes more than any other.

So, to recap, we're going to borrow money that will have to be repaid by grandchildren to give to grandparents who, by and large, don't need it. How does this make sense?

Comments

[fish]

Do something positive with your "Panic Pork", buy a shiny new US 1 ounce Gold Eagle coin.....or a shitload of Pabst Blue Ribbon! (I confess, I'm still weighing both options)

[Lee]

I had the exact same thought when I saw that not only was there bipartisanship on this, but it wasn't even a "one side capitulated" bipartisanship.

[Squidley]

Or you could do what you're not "supposed" to do with it and put it into savings, or invest it, or use it to pay off debt. That's what we at the House of Squidley will be doing when the gummint pays off its interest-free loan to us.

In any case, an astute observation, Tom. However, the money will, in all likelihood, never be repaid--and this is a Good Thing. You see, the gummint will just roll over the debt by issuing new bonds. Now, who will own most of those bonds?

A. The Chinee and other eeevil ferriners.
B. The Japanese, British, and other friendly ferriners.
C. 'Murcans.

The correct answer is, of course, D. The Federal Gummint. Lookie-see here. The breakdown on current ownership of the US debt is as follows:

US Government: 45%
American citizens: 28%
Foreigners: 27%, with the Japanese, Chinese, and British in the top 3 positions.