As President Obama settles into his new office, it is imperative that we encourage him and Congress to exercise prudence when attempting to rescue the economy. Massive deficit spending will only throw our country further into economic shambles, as the current stimulus and SCHIP bills do little more than increase our debt and healthcare costs. Consider the following issues with the “stimulus” bill:
1) The $825 billion bill would dump $10,520 of new debt per household into the laps of our children and grandchildren. The interest on this debt ($347 billion) will dump even more.
2) Under the stimulus, new groups of children and adults would be eligible for Medicaid, the welfare program for the poor. These expansions are on top of spending $89 billion to bailout out failing state Medicaid programs.
3) The current “stimulus” bill will be the largest spending bill ever enacted by Congress, making the New Deal look small, accounting for inflation.
4) President Obama anticipates that spending over $800 billion will create 3.7 million new jobs. That means each job will cost more than $200,000, which is roughly equivalent to 5 times what the average American worker earns!
5) The bill is full of wasteful spending, including $21 million on new sod for the National Mall in Washington, $600 million on cars for government bureaucrats, and $650 million for digital television converters.
Also in Congress this week is the SCHIP bill that would essentially allow states to cover children of any income level, and even some adults and immigrants. This bill and the Medicaid expansions found in the economic stimulus package are moving the country closer to the tipping point where government will control more health care spending than the private sector, giving individuals and families less freedom over their personal health care decisions.
Many commentators and politicians have rushed to compare our current economic situation with the epic struggles endured by Americans during the Great Depression. However, it is often forgotten that even members of FDRs Cabinet admitted that the vast amount of federal spending that defined the New Deal was not the solution necessary for economic recovery. Real stimulation will come from the private sector, who can create wealth to restore our economy not the government, who can only redistribute wealth by taxing and borrowing.
For a one-page document on the facts of the stimulus plan, click here.
To read the bill, click here.