We recently saw a Glenn Beck show in which he illustrated the amount of money that is being printed and put into our system right now and how that compares to other times in history (Great Depression, WWII, 9/11 etc.) This clip is just under 4 minutes long, but worth your time!
Glenn Beck "Inconvienent Debt" Video
Regardless of political party, this is something we should all be a little concerned about. In fact, when I saw it, I yelled right out loud, "HOLY COW!" We have yet to feel the effects of printing so much money, but in the next few years, we are in for a dramatic rise in inflation!
Unfortunately, printing money is controlled by the U.S. Department of Treasury and the Federal Reserve. I don't know how accountable they are to the people, or if there is really anything we can do to influence this. Maybe we could write to the Treasury Secretary and just tell him how concerned we are about the rate of infusion of cash into the supply and the inevitable rise in inflation. (Hopefully we all have our food storage ready because we are about to see the dollar turn into the peso.)
That being said, there is something we CAN contact our representatives about:
President Obama has just introduced his stimulus plan to the congress, which is currently up for debate in the Senate. And in my humble opinion (if any of my opinions are humble): This plan will NOT stimulate the economy. The plan entails borrowing $819 BILLION (essentially doubling our trillion dollar deficit) from other countries. (If the government was borrowing this amount of money from its own citizens, each American Household would be required to fork over $10,000!) Recessions are never solved by borrowing more money. They are solved by getting money back into the hands of the tax-payers through tax-cuts. (And that doesn't mean handing out "tax refunds" to people who don't even pay taxes, as nice as it sounds.)
So, what will the money be used for? Here are just a few things included in the bill that I think are questionable:
- $200-300 billion to go toward bailing out state governments that have overspent their budgets. So the taxpayers in Indiana whose government was responsible and lived within their means will be bailing out Californians whose government has overspent like crazy. As my kids would say, "That's not fair!"
- $650 million for digital TV coupons. . . . Really? (When did TV access become a civil right?)
- $50 million endowment to the National Endowment for the Arts (I'm all for the arts, but we've got to distinguish between needs and wants here.)
- $400 million to study global climate change
- Hundreds of millions for contraceptives
- $20 million to re-sod the National Mall
- $620 million for new government vehicles
- $136 billion goes toward 32 NEW federal government programs
Now, there are some good things in there too. It does include $275 billion in tax cuts, which is good. It also includes $43 billion for infrastructure (bridges, roads, interstates, etc.) which is something that government should be paying for. But that $43 billion is only 5% of the entire bill! And, it won't even be spent for a couple of years, which doesn't do anything for the economy right now.
On January 28, the House of Representatives passed the bill. If it passes the Senate, we will be saddling our children and grandchildren with an impossible load of debt and suffocatingly exorbitant tax rates. Sooner or later the countries lending us money are going to figure out that we aren't good for it, and cut off their funds.
So what can we do about any of this? We can be heard.
This bill is up for debate in the Senate NOW. (Februrary 4th, 2009). Please contact your U.S. senators in the next day or two, and let them know where you stand on the bill. Plead with them to find other solutions that will be fiscally responsible. If they're calling it a Stimulus plan, let's ask them to create a bill that will eliminate the things that aren't necessary, and pass the things that actually WILL stimulate the economy. We need to encourage our representatives to make good choices for our country!
For more information regarding the stimulus package you can check out these websites & articles: