Stimulus and Spending; Are They Really the Same?

My Flag Flies Everyday

My Flag Flies Everyday

I watched the speech and waited for something that would make sense to me. It didn’t happen. Last night, President Barack Obama addressed the Democratic representatives at their posh retreat in Williamsburg, Virginia. I recall many times during my working life when the company was going through a recession our leader never sent us to a resort for a retreat. Instead, he put the screws to everyone in the company to shape up. That meant working harder, smarter, and with fewer resources. I survived the stress with some long term side effects that I carry to this day. It was never a fun time to let people go, and to work the ones, who remained, harder to get more done.  

I don’t see that happening in the government sector of the economy. The government never lets staff go, they do make it bigger though. Back to the speech. I saw PBO at his finest. His suave and flawless delivery reminded me of his campaign speeches that hypnotized the masses. He did it again last night. I saw something else this time. He definitely had the sound of a black preacher man in his timing and his delivery. The audience of democratic leaders shouting “amen,” to his points of emphasis. Maybe he did listen to the Rev. Jeremiah all those years. He certainly sounded like him.

PBO made a joking reference to the cable networks calling his stimulus bill a spending bill. He railed that spending is stimulus. I like to think there is a slight difference between the two words. A stimulus is a sharp prod to get things to move again. It could be money, and spending. Spending on the other hand is an exhaustion of money, energy, or resources. Over sixty percent of the bill presented by congress was spending that is not a jolt, but rather an ongoing drain. Sure, some of it might even create a job or two, but  not in the short term. If the economy is to be rallied to head off a depression, something more drastic needs to be done. 

PBO kept ranting that he didn’t want to be presented with tired old ideas that don’t work, with the expectation that something different will happen. I agree, “if you keep on doin’ what you been doin’  you’ll keep on gettin’ what you been gettin’.  I also believe that if you want to see a big effect occur, you need to make a big change.

Here is my proposal for big change. It is an old idea, but one that will provide stimulus and long term good health for the economy and the country.

1. Cut ten percent of the employees from every department of the Federal Government. The private sector does this all the  time to cut costs. The president, his cabinet, the house of representatives, the senate, and all employees of the Federal Government take a salary cut of 50% until the economy recovers. Most of us in the private sector will be asked to take reduced wages to save our jobs, why shouldn’t the federal government employees be asked to make the same sacrifice?

2. Balance the budget. Base the budget on twenty percent  less income.

3.  Can the entire SEC. It has a budget of $904 million. They are totally remiss to all of the thieving going on in Freddie Mac, Fannie Mae, the banking system, Bernie Madoff, etc.

4. Can the entire Department of Education. It has a budget of $68.6 billion. It is money saved. As many as fifty percent of our kids don’t finish school so why continue to throw more money toward a system that is failing?

5. Can the entire Department of Health and Human Services. It’s budget is a whopping $737 billion dollars. We have a fabulous private health care system, but Medicare is going broke. Who can afford to go on as it is?

Need I go one further? I think I have given the President some bold ideas that he does not have the balls to act on. The tired old idea that does work is this: “Spend less on Government, and the consumer will regain confidence in the economy.”

The money saved by this plan will stimulate the economy because it will require less tax to run the government. The private sector will have more money to invest. “Joe the Citizen” will have more money to spend. All of the people who lose those fat government jobs can work in the private sector doing all the jobs that are currently filled by illegals. With fewer service jobs available to them the illegals will stay in their own countries: another problem solved.

Come on PBO, you can do better than “just words.”

Tracey J Boothe Publishing Blog

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