Monday, September 6, 2010

Stimulus Vultures

President Obama plans to announce several additional packages this coming week to assist economic recovery. As the word “stimulus” has become toxic in Congress, look for other words to describe his proposals.

Proponents of additional stimulus, who wanted but did not get a bigger stimulus the first time around, complain bitterly that “deficit hawks,” who have found religion against more spending, are harming the economy. I think we might call these critics “stimulus vultures,” who eat up borrowed money (from foreigners and Americans) and taxes for payouts to political friends. Given the disagreement among economists on whether the stimulus was beneficial, or largely irrelevant and wasted, feeding more stimulus to the vultures can be dangerous to the nation’s health as it runs up more debt and increases future debt servicing costs.

No comments :