ALG Editor’s Note: In the following featured editorial, the Denver Post gives the American people a few things to consider before Washington politicians pass a second stimulus.
Tap brakes on second stimulus
Before President Obama and Congress approve more spending to create jobs, they need to produce a plan to reduce the debt.
American taxpayers, as well as their grandchildren, already are on the hook for well over a trillion dollars in recent government spending that was meant to stimulate the economy.
So forgive us for being a bit skeptical as President Obama and top Democrats in Congress think about cranking up yet another round of spending to stimulate the creation of jobs.
Yes, the economy is hurting, so it is understandable the president would like to help. After all, some economists lamented that the size of the original stimulus package was too small to work.
Still, beyond propping up revenue-starved state governments, which we realize likely has saved some jobs in Colorado, we have yet to see substantive proof that all of that money has created a meaningful number of new jobs.
It is imperative that American taxpayers get some clear answers and strong evidence that a new government bailout/stimulus plan will work before we’re asked to foot more debt. Taxpayers also should be given a reasonable plan for eventually trimming the federal debt, which is swiftly becoming unsustainable.
The $787 billion spending bill in recent months has been used to expand a hefty tax rebate for first-time homebuyers that could eventually cost taxpayers another $100 billion.
That’s on top of the $80 billion spent to bail out American automakers and the relatively marginal $2 billion add-on to the $1 billion first provided for Cash for Clunkers.
Add all of that largesse to the $700 billion Troubled Asset Relief program rushed through Congress last fall under President George W. Bush, and it is easy to see why the deficit grew by more than a trillion dollars in breathtaking speed.
It also accounts for several recent polls that show Americans are becoming increasingly concerned about spending and our nation’s rising debt. Americans also should be concerned that the federal government spent all of that money and the unemployment rate shot to 10.2 percent and is headed even higher.
Congressional aides have estimated that the new spending package would cost tens of billions of dollars.
Lawmakers are considering road projects (remember all those shovel-ready projects simply waiting for cash?), loans to small businesses and incentives to manufacturers operating on American soil.
If possible, the lawmakers say they want to avoid deficit spending by possibly tapping unused TARP funds or adding a tax to stock trades. Certainly tapping TARP would make more sense than a new tax that would discourage investment.
As we’ve seen in Colorado, the situation among many state governments will be even more dire once the current round of stimulus money is gone. But as critics point out, endlessly borrowing money is poor public policy.
At some point, government, much like the American people who have been increasing their savings rates, needs to live within its means.
Like the last time, Democrats are urging swift passage of a new spending measure, perhaps having the bill passed before Obama’s State of the Union address in January.
But first, he needs to give the American people more than lip service on our mounting debt.
