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December 17, 2009
When Times Are Tough...
When a normal person encounters some difficult financial times, they retrench. They curb spending, perhaps try to refinance with lower payments, trade in that new car for a used one, take a second job, eat out less. They shouldn't spend money they don't have; that's an invitation to bankruptcy, poverty, eviction.
If you're the Federal government, you pass bills that authorise a 10% spending increase during a recession, (well above simple inflation), when unemployment is double digits. If you're the Federal government you continue your porcine ways and funnel federal money to needless things. If you're the Federal government you raise the debt ceiling and print money and spend spend spend. The rules of finance and economics still apply, but being the government with the people as your ATM, you are heedless of that fact and engage in reckless behaviour.
Shovel ready projects are absurd; they are busy work, they aren't long term. Mr. Man saw one on our road trip this past summer; it was a widening of the road between a small town in New Mexico (I believe it was Farmington) into another small town in Colorado (I think that was Durango). The existing pavement, which we traveled on as they widened the road, was in great condition and even with the construction delay the traffic was light. These shovel ready projects are sound and fury signifying nothing. There are a panacea for an administration that is failing about in waters well over its head.
Posted by hanyap at December 17, 2009 9:22 AM