The results of the election of 2008 are that the economy is going to be managed by Congress and the President, not by market forces.
The $787,000,000,000 stimulus bill, passed by Congress is in most cases funding pet projects that Democrat Congressmen/women and Senators have in their districts or states.
The funds are being used on projects that have a one to two year time frame and will not immediately impact the economy with the needed stimulus.
The reaction by Wall Street is the Dow Industrial Average dropped from $8218.
22 on January 19,2009 to $6926.
49 on March 10, 2009 or a 15.
7% decline in 69 days.
The government spending money while not accounting for the funds will not stimulate the economy.
The money will not create the multiplier effect to grow the economy.
Normally, when tax revenue is sent to Washington D.
C.
, each dollar shrinks to 33 cents in benefit with a government handling charge of 67 cents.
The most cost effective method of economic stimulus is to reduce the collection of taxes leaving the money in the hands of the person or company that made the income so they can choice where to spend the money.
Many of the projects that are "shovel ready" are not completed because money has not been available do to a lower priority.
Thing like re-routing a highway, building bicycle trails, remodeling airports with four commercial flight a day, and making a dump into a park.
Paying for this type of project with borrowed money, which will not be paid back in our lifetime, will make the cost with Washington shrink and interest cost, ten or more time what the actual cost of the projects should be.
When a recession hit the economy government spending has never ended the recession.
The economy shrinks, companies cut waste, individuals reduce spending, government experience a reduction in tax revenue, resulting in a lean machine ready to become more productive when the economy recovers.
This recession was caused by banks being encouraged by government to loan money to individuals buying a home.
The loans were not based on ability to pay causing a large foreclosure rate.
These mortgages were part of mortgage back securities which were sold by broker/dealers to banks worldwide.
This is what caused the real-estate bubble.
The U.
S.
economy is as big as the rest of the world.
The federal government needs to cut back just like everyone else, reducing the collection of taxes and wait for the recovery to occur.
To your financial success, Martin Braddock
The $787,000,000,000 stimulus bill, passed by Congress is in most cases funding pet projects that Democrat Congressmen/women and Senators have in their districts or states.
The funds are being used on projects that have a one to two year time frame and will not immediately impact the economy with the needed stimulus.
The reaction by Wall Street is the Dow Industrial Average dropped from $8218.
22 on January 19,2009 to $6926.
49 on March 10, 2009 or a 15.
7% decline in 69 days.
The government spending money while not accounting for the funds will not stimulate the economy.
The money will not create the multiplier effect to grow the economy.
Normally, when tax revenue is sent to Washington D.
C.
, each dollar shrinks to 33 cents in benefit with a government handling charge of 67 cents.
The most cost effective method of economic stimulus is to reduce the collection of taxes leaving the money in the hands of the person or company that made the income so they can choice where to spend the money.
Many of the projects that are "shovel ready" are not completed because money has not been available do to a lower priority.
Thing like re-routing a highway, building bicycle trails, remodeling airports with four commercial flight a day, and making a dump into a park.
Paying for this type of project with borrowed money, which will not be paid back in our lifetime, will make the cost with Washington shrink and interest cost, ten or more time what the actual cost of the projects should be.
When a recession hit the economy government spending has never ended the recession.
The economy shrinks, companies cut waste, individuals reduce spending, government experience a reduction in tax revenue, resulting in a lean machine ready to become more productive when the economy recovers.
This recession was caused by banks being encouraged by government to loan money to individuals buying a home.
The loans were not based on ability to pay causing a large foreclosure rate.
These mortgages were part of mortgage back securities which were sold by broker/dealers to banks worldwide.
This is what caused the real-estate bubble.
The U.
S.
economy is as big as the rest of the world.
The federal government needs to cut back just like everyone else, reducing the collection of taxes and wait for the recovery to occur.
To your financial success, Martin Braddock
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