The Presidents’ “new”  Stimulus Jobs Plan is shaping up to be very similar to the ‘too small’ $787 Billion dollar Recovery Act passed back in 2009.  If the $1 Trillion plan wasn’t big enough, how is the $300 Billion one going to do anything? (The $787 Billion plan is over $1 Trillion once you account for inflation. Thanks, Bernanke) The focus will be primarily on choosing economic winners and losers by interventionist policy much like the 20th and now the 21st century has already been plagued with.  Not to get too off track, the big ticket items will be infrastructure, construction, and state governments on the receiving end of federal aid.   Industries that are heavily represented by union workforces and by that virtue Democrat affiliated.  Once again we see planned economy policies coming from this administration for pure political gain.   Not to mention many states are still in the red even after the federal boost. Many states and municipal governments (at least here in GA) are still faced with serious budgeting issues and are forced to slash services, waste, redundancy, and raise property tax rates.  So what good did the state/municipal bailouts do if it only delayed the budget cutting and government layoffs?  The end result is the same. Just like FDR interventionist policies only perpetuated the problem. I think people forget the guy has 14%+ unemployment even into his 3rd term and the 2nd New Deal. You can dodge the free market for a time, but eventually it will catch up and punch you in the face; reminding you that market distortions never last.

Federal subsidies to sate governments are counter-intuitive to the very founding and principle of our constitutional republic. States were designed to be the “laboratories of democracy” (as much as I hate that word, I had to quote Jefferson and the other Federalists.) States are designed to compete against one another and the federal government was meant to be limited to act only in a national scope. Or simply, why is the mega-broke federal government helping the not nearly as fiscally ruined states?

PS. Yes I know Jefferson led the Anti-Federalists but Madison had already stolen the catchy name. (Thanks Dr. Schaeffer for the revelation on this today.)
Quote of the day:

“This is not a dispute about whether planning is to be done or not. It is a dispute as to whether planning is to be done centrally, by one authority for the whole economic system, or is to be divided among many individuals.” -F.A. Hayek

-Adam

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