IMHO, Obama needs to plan a 3-legged economic stool:

1. Ensure bank liquidity which will ease the credit crunch.
2. Stabilize home prices.
3. Increase consumer confidence to spur spending.

From this AM's KNS, I saw an article about the Home Builders protesting the stimulus...I guess it leaves them out...and it should. An overabundance of housing harms #2 above and until #1 above is done, the point is moot.

Spurring more building doesn't really do anything positive for the economy as a whole that I see. There is a glut now. And of homes that are too expensive both because just too much house, and in addition because artificially high appraisals. The building component of the economics realistically will have to take it on the chin. They did it to themselves.

I saw the condos adjacent to city? garage downtown priced starting at $249,000. That seems 'crazy talk' high to me.

Actually, road repair is exactly the kind of stimulus we need. If you picture the economy as a pyramid with us poor people on the bottom as the largest group and the Gates' and Buffetts at the top, it makes sense. Whatever money goes to the folks on the bottom, the laborers and servers and entry level types, that money gets spent. It makes it's way up the pyramid and stands a good chance of being in circulation for quite a while. It has the advantage of having to be earned by those farther up the pyramid which is an advantage because it means they can't get it unless they have an operating business. If they were to get that money as a "giveaway", they would quite likely put it into savings right now but, because they have to "earn" it, they will have to pay employees, buy stock, improve the physical structures, advertise, buy supplies etc etc etc.

The idiotic tax cuts for the wealthy is more of the voodoo, trickle-down Reaganomics that simply doesn't have any significant stimulative effect. Companies respond to increased business by making sure that they can handle increased business. They do not build up their businesses while business is declining. That is when they tend to sit on their holdings. Poor, lower-middle and, middle-class should be the focus of the stimulus package. We will put the money we get into circulation. We got no choice.

CAFKIA

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It is impossible to defeat an ignorant man in argument.
  - William G. McAdoo

"Companies respond to increased business by making sure that they can handle increased business. They do not build up their businesses while business is declining. That is when they tend to sit on their holdings. "

Thank you for reiterating clearly the major hole in Reaganomics. Cut taxes all you want, but if you have no customers, you're not going to expand or hire. We're certainly seeing that in our business. You could tax me at 0%, but that wouldn't make me expand one iota, I'd just bank the cash to use in better times.

I found the editorial on the stimulus package and the story in business section about "Hunkering down can hurt" very interesting.

Could this whole recession be a way for people to reevaluate their lives? With 7.2 percent unemployment, how many people have lost both jobs in their household? 30 years ago, each household had one employee. Now most households have two. So if one loses a job, it is definitely different than recessions past when that job was the only one.

The couple in the story had $40,000 in debt and making $60K in salary. I hate to be caddy but I wonder what she was spending the money on -- the house looks like it hadn't been touched in 30 years. She admitted to being a shopaholic.

We buy too much stuff. And when we stopped buying by less than 4% -- the whole economy collasped. Doesn't this sound strange to you. Now we want to fix it creating legislation that is 647 pages. I don't know. I think God gave us ten fingers for a reason. If a program has more than ten components -- it's probably too complicated.

I don't blame President Obama as I could not always place blame on Bush. It is our legislative branch that is out of control. They don't care about the people -- only enough to help them get re-elected.

Trouble with the road building thing is, the money goes to the states. TN, for instance, has nearly the largest mileage of roads per capita, and we spend near the most in the nation per capita compared to other states. If the money does indeed go only to road repair, I might be on board. But if it goes to building new roads then this will do more harm than good.

I have also heard it mentioned that road building won't be particularly helpful for women's economic recovery, as only a few flag wavers and administrative assistants will be stimulated.

Consumers. That's who. It's definitely stimulative.

I have a question for loyal Democrats.

While I can see the importance of reaching out to Republicans, will there come a time when President Obama lowers the boom and plays hardball?

To hear Republicans right now, from Sen. Corker's claim there will have to be "huge, huge" changes in the stimulus bill, to others saying each increase in funding for say, Head Start, has to be matched with a cut somewhere, or the Republicans oppostition to the parts of the bill that start the country on a new course with new, long term, federal programs to meet the country's needs, it seems that Republicans either didn't read the newspapers on Nov. 5, or they just don't care, and they think they can still make things run as if they had won.

When will Obama say "Enough!", or is President Obama and the Democrats allowing the Republicans to walk into a trap?

I didn't know until the Sentinel criticized it that there is part of the stimulus that helps the unemployed with their health care. That would help those without insurance be healthier as well as have fewer money worries.

There talking about giving child tax credit of $5,000 dollars to kids under 17. How about the kids that are now trying to get throw college. The money we had put back in stock to pay their college is gone. I think this should be a factor. It's not fair.

(link...)

“The bill’s health rules will affect “every individual in the United States” (445, 454, 479). Your medical treatments will be tracked electronically by a federal system. But the bill goes further. One new bureaucracy, the National Coordinator of Health Information Technology, will monitor treatments to make sure your doctor is doing what the federal government deems appropriate and cost effective.”

“The bill’s health rules will affect “every individual in the United States” (445, 454, 479). Your medical treatments will be tracked electronically by a federal system. But the bill goes further. One new bureaucracy, the National Coordinator of Health Information Technology, will monitor treatments to make sure your doctor is doing what the federal government deems appropriate and cost effective.”

Yeah, yeah, this line was called in to the Neal Boorz show yesterday claiming that this meant that the federal government would let you kill grandma because the government would deem it "appropirate and cost effective."

Hate to tell you this, but in most medical cases someone is already deciding whether the care you get is "appropriate and cost effective," if they're paying for it.

I don't think these types of "the federal government is a death factory" conspiracy theories will get much attention here, other than being labeled as conservative hysterical tripe.

medical treatments will be tracked electronically

So what? Advanced medical records technology was a keystone of McCain's campaign. Both Corker and Alexander have said they support it. This is a made up scare tactic to inflame the conservatives over "socialized medicine." It does nothing more than what Medicare is already doing for the most part.

So am I to understand folks here on Knoxviews have no issue with the federal government encroaching on every aspect of your life? Let me be clear…this is not a Democrat vs. Republican thing; this is about the second string bench warmers controlling every last aspect of your life. If you have no problem with that type of life style you’re in for a treat. If you have traveled the world and lived among an autocratic or socialist society you know what is coming and it is not the warm fuzzy sitcom congress is painting for us on TV every night.
So while you’re sitting on your hands waiting on your government check to come do the math….if you spent one million dollars each day starting on the birth date of Jesus Christ to today’s date…you still will not have spent what congress is planning to spend in the recovery package.

So am I to understand folks here on Knoxviews have no issue with the federal government encroaching on every aspect of your life?

Nope, I don't have an issue with it.

You already get a hand out from the working people via the government so you don't care.

Huh?

B. The cost of maintaining the US military in Iraq for 3 days in 2008.

Don't forget to add it up.

According to Stiglitz and Bilmes it will be about $3 trillion.

Add that to Bush doubling the national debt from about $5 trillion to $10 trillion.

After hearing Republican Congressmen criticizing the bankers today, I tried to remember how often the CEOs of Haliburton were in front of Congress being admonished about how they spend the "taxpayers'" money.

Er, none?

Gary,

Please explain your reply. And again...this is not a republican / democratic thing. This is about the US Congress being the most exclusive country club on the planet and its members wanting to keep it that way.

Thanks Gary.

Sorry, I don't do requests. Especially those that I have no idea what they're asking.

Gary, maybe you can get one of those government jobs?

But then I'd have to compete with all those "government is not the answer" conservative Republicans who are always angling for those "government jobs."

Gary,

Жертвенный ягненок

Good luck.

Indeed.