Apparently, the Dems are tiffed that their bills, full of billions of dollars in earmarks for organizations such as ballot-stuffing ACORN, are not bought into by the Republicans.
Their response? To spend huge amounts of tax payer dollars to run campaign ads attacking anyone that disagrees with them. When you can’t get your massive random spending bills passed easily, spend more money to lie to the public!
Legitimate members of Congress all want a stimulus package. There is no debate about that. What the Republicans are fighting are horrendously embarrassing earmarks for every liberal state and every liberal or radical organization in the US.
The purpose of any economic stimulus package is to stimulate the economy. It isn’t to stroke cronies in your party. What America needs now is direct stimulus that feeds directly into the economy, not billions filtered to agencies like ACORN planning the long term demise of our nation.
Here is our suggestion. Use at least half of the money to drive down mortgage rates. Pressure the banks to make mortgages affordable. Pass laws that force the banks accepting US funds to bail them out to offer affordable loans for Americans.
If you think the banks are already doing this, you are sadly mistaken. Mortgage rates are not down all that much and the profit margin for banks between bond yields and bank rates is the highest in history. The banks are choking off credit as they are being offered free money from the government. Citibank, for example, has mortgage rates running around six percent, while the national average is closer to 5, but has consumed billions of American tax dollars to stay afloat.
This will provide a steady flow of savings to the home owner and the consumer. Providing a one time tax break will provide a one time stimulus for a tax payer. Providing a one percent drop in the rate of a mortgage will provide stimulus to the home owner every month for the life of the loan.
Believe it or not it will also be anti-inflationary. Property values are not used in the government’s measure of inflation, but rents are. Making the purchase of a house less expensive makes that avenue more attractive than renting, driving rent prices down and thus inflation.
What we do not want to do with the money is support long term plans at this juncture. Better education is a fantastic goal, but teaching a captain how to navigate better is useless if he is on a sinking ship. Help for the needy and the poor is admirable, but jobs, not welfare are the best way to do it.
Focus on fixing the problem, and then, when the ship is righted and no longer in distress, start the process of sailing it better.