Alternative to the Stimulus Package

By Bill Porter

Even though the doctor was well intentioned, when he amputated the wrong leg the mistake was irreversible and it was the patient that paid the price - and so it is with well intentioned but misguided economic stimulus plans. Fortunately, there is ample historical evidence that shows the futility of governments simply going on a spending spree as an antidote to an ailing economy. Unfortunately, either the Bush/Obama stimulus express team is unaware of such information or they simply have chosen to ignore it. Six months after the stock market crash of November 1929, unemployment was at 6%. President Hoover (R) then intervened and passed tariffs that would "protect" American jobs. Unemployment quickly grew worse. Three years later, President Roosevelt (D) followed Hoover's lead of "doing something" and added a massive government stimulus plan. Unfortunately the "something" that both presidents chose was the wrong medicine. The patient got much worse. [more...]