Saturday, February 7, 2009

It's The Lack of Confidence, Stupid!

I just finished watching one of those weekend pundit shows with the 4 talking heads debating whether the economy needs a robust "stimulus plan" or more tax cuts. Folks, I think we are in trouble more than we realize when these so-called cognitive elites still don't get it.

People are not spending disposable income you idiots! Trillion dollar new spending from the federal government may employ a fraction of the unemployed (to include some illegals aliens), and a tax cut may enable a fraction more to save more, but neither of those strategies solve the core problem of getting people to spend, spend, spend.

Our elected officials are still in an intellectual holding pattern as to what to do. Perhaps years of decisions based on special interests created this mess.

The economy will turn around when there is more good news, and the doom and gloom reports decrease. Americans are terrified, and they are undoing years of stupid consumption. Eventually, the savings floodgates will gradually open and consumer spending will increase with the renewed prosperity. But until then, the beltway's insistence on arguing about supporting special interests under the guise of fixing the economy will only prolong our current malaise.

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