Stimulus or expansion?

Tomorrow, President Obama is hoping on Air Force One (have you seen the History Channel’s Look at AF1?) and flying to Denver where he will sign THE LARGEST SPENDING BILL in the history of the country. First off, if he wants to help out, why not sign it in his office (which doesn’t require an Air Force Jet to get to)? Secondly, is it really as stimulating a bill as everyone thinks it is?

It’s supposedly going to help create jobs in the Pacific North West upgrading and building a new power grid. However, due to planning and permitting and other factors, any kind of hiring bump may be put off until 2011 if it even happens there. So any immediate effects in that area are going to be negligible. Secondly, there are so many different handouts in here, but nothing to actually stimulate the economy or create jobs (out side of government jobs). Don’t believe me? Read it yourself.

It is interesting to see though, how the candidate of Hope and Change has quickly become the president of Doom and Gloom claiming that he has “inherited the worst economy since the great depression”. A claim that simply isn’t true. In fact according to the Pittsburg Tribune, its really the worst economy since Carter was in office. In fact, the Misery Index (inflation rate added to the unemployment rate) was 21.1 when Regan took office in 1980 and todays Misery Index is only 7.6 (there hasn’t been any inflation). The article at the Tribune also goes on to note another Democrat President “who was not obsessed with class warfare, as today’s Democrats are”. In fact, Kennedy cut taxes and unemployment rates dropped to 3.8 percent and the annual tax revenue rose. Regan proved the point again in the 80′s.

Lastly I want to point out a good article at the Economist discussing the politics of the recession and the fact that despite claims of bipartisianship, its been a “my way or the highway” attitude coming out of the new administration. Arguing that the Democrats are using the current economic climate to push their causes and ideas through as “stimulus”.

It will be interesting to see if the stimulus bill helps the economy or ends up being one of those weight loss products that makes grand promises that it never delivers on.