Stimulus Bill

Harvey, you posed a great question...wasteful spending in the Stimulus Bill, "pork" in the argot of the political trade, and the ostensible objection to the proposed Obama bill. As I do better literately than verbally, I'm going to re-state my take on your question...if for no other reason than I believe the written word carries far more weight of credibility than does the spoken word, particularly when that word is only marginally comprehended amidst the din of a raucous tavern.

Inasmuch as I consider the crisis the country is facing is tantamount to catastrophe, hardship, pain and ruin beyond anything we have ever experienced in our history..making time of the essence...that Republicans would obfuscate, splutter and obstruct, from the obvious standpoint of self-serving partisanship, can only be judged, IMO, reprehensible and downright unpatriotic. To qualify my point, I would refresh the fact that the failed policies of the past, Republican, years...starting with the repeal of Glass-Steagle by country bumpkin economist Phil Gramm..wherein regulations of our financial system that served us well for decades, were overruled in favor of "free Marketers" and laissez faire proponents, which allowed Sears to sell stocks, bonds and insurance policies right next to refrigerators and claw hammers...and gave Wall Street carte blanche, which resulted in the creation of, not tangible products, but huge fees in paper financial instruments that even the creators of them could not sensibly explain to the likes of our greatest businessman, Warren Buffett. Not only was the Street allowed to run "free", the mantra of the greedy, but restraints on leverage and reserves were abated, then not even enforced by a government that was simply incompetent and incapable of governing in any area, let alone the financial sector. The Bush administration let the fox in the hen house. Fact or liberal partisan fiction?

When the financial system crashed...the Republican Secretary of the Treasury, Hank Paulson..former GS COB and CEO with an annual income of $40+M for years from the very people on whose behalf he was now making fervent pleas, and the Bush appointed Chairman of the Federal Reserve, Ben Bernanke, called a meeting of Congressional leaders...DEMOCRATS all...and in a matter of fucking HOURS had agreement to give the heretofore wealthiest investment brokerages and banks in the world, $350 BILLION, not only with no strings attached...but with virtual czar powers to Paulson...a single man was going to determine who got how much of an unprecedent amount of taxpayer money...because the DEMOCRATIC leaders realized the situation was dire and time was of the essence. They did not equivocate...they did not go before TV cameras and raise bullshit about Reagan's deficit legacy..or Bush's total lack of any leadership in the crisis...they said, "do what you have to do, Hank." And it was done. And the DEMOCRATS went before the public and explained why it had to be done as articulately as any Republican...and more so, because they were leaders thinking of the good of the country...and not a wonderful opportunity to castigate the administration for bringing the mess about in the first place. It didn't solve the provlem, nor was it intended as a panacea, but it staved off armageddon and bought time until cool heads could prevail and longer term plans devised.

Now? Now, with the whole country imperiled and on the edge of a financial abyss...we see assholes like Vitter, McCain, Lindsey, Boehner and others spouting the hackneyed old Republican saws of "wasteful spending" and "cut taxes"...fucking shibboleths with no purpose other than to cover their asses with their faithful back home...so next election when, hopefully, we are past this millenial crisis and fighting solvable inflation, he can say, "I told you so." This is not statesman ledership. This is bullshit partisanship evidenced by partisan votes, to a man, by Republicans that have amnesia to the extent that their party, whilst having the hat trick of government, fucked things up...and, besides, they LOST!! To think that not a single Representative..or Senator...of the opposition party could agree with the majority party on such a momentous matter affecting the entire country, is beyond mathematical calculation in its absurdity...especially when, only months before, the opposition party of that time supported the majority's programs, without hesitation or folderol, and ironically, it was a no debate approval of the biggest "spend" give-away in history!!

Our economy is 70% driven by consumers...and with trillions of wealth from home equities, IRAs, pension funds, literally evaporated...people not only voluntarily stop spending, they can't spend. Arm chair economists bemoan the "living beyond our means" and "we are all to blame", blah, blah, but there is a difference in supporting even excessive consumer debt when mom and dad both have good jobs and $50K equity in real estate vs one so-so job and no equity to leverage. Businesses, without orders, utility capacity of 70% or less and sales projected to continue to erode...are not going to increase capital spending..they are going to curtail it, shut existing facilities, cut costs, work off inventories and cut labor..their biggest expense...to the bone...and a vicious spiral begins with disinflation whirling into dreaded deflation...economists', the world over, worst nighmare. With the Fed's classic tool for combatting economic slowdowns, reducing interest rates, totally used up...and Fed Treasury buys not making a dent...what is the answer? How does a massive economy get its life blood, consumers, to spend money in this scenario of pending economic doom? As sure as government is charged with military defense of the country, so too is it charged with protecting the country's life blood, its economy. Unless, of course, the country is willing to emulate the ruination and insolvency of, say, Iceland...a microcosm of a nation's ruined economic health for years to come.

We are experiencing wage cuts not seen since the depression, unemployment is at or near double digits in California, the largest state and barometer for the country, our once vaunted auto industry is collapsing in front of our eyes, retailers are slashing prices to move inventory yet sales continue to decline, bankruptcies are escalating, commercial mortgages, auto loans and credit card debt defaults are rising...and disinflation is rapidly looking like deflation...which will result in debt being more of an onerous burden which leads to more defaults, more liquidations, layoffs and the cycle feeds on itself with the only recourse we have left to stop the spiraling is government...who or what else can do it? Only govt can deal with such a problem...and in a consumer economy, only spending...whether it be on condoms, to artists to paint, writers to write, kids to play, the sick be treated or building a god damn bridge, doesn't matter.

Obama's only mistake regarding getting a massive amount of spendable money into the hands of consumers was his bipartisan approach to Republicans...coddling their favor with an open, outstretched hand..listening to their bullshit and empowering them to the point that the assholes are afraid to deny or cross the hateful, divisive pig, Rush. He should have taken a cue from Bush when he had Congress...and rammed his program down their throats.