New Bill to Propose major tax changes to help the Economy?

Stimulus to help from entering a depression, bail outs to help from entering a depression, QE1 and QE2 to help us out of the recession, Possible QE3 to help unemployment in the future, And now Newly proposed major tax cuts and extensions to help our weak and fragile economy recover. Sure hope the Government knows what its doing. But if I had to guess Keynesian Economics of spending our way out of this mess might not be working as many had hoped for.


Link to CnnMoney New Tax Bill Stimulus

Spending Someone else's Money on Someone Else...

Although I do not agree with every theory of Milton Friedman's I do think his explanation on how inefficient Government Spending can be is very true.

The 4 ways to spend money

Congress has a deadline to extend the deficit

Congress must come to an agreement before saturday to extend funding to the already overwhelming government deficit.  Many fear that without the extension that more government employees could lose their jobs and more government programs could get cut.  However congress has been in this predicament many times in the past and has always favored an extension but i shouldn't have to point that out the deficit is almost at 14 trillion.  So who cares right we will deal with our debt issues when the time comes?


Today's economic problems are not about what we are doing now.  They are about what we have already done for past few decades. The mistakes we have made were the ideas to inflate credit to excessive levels in the hope of creating Wealth. We continue to bail out the top 3% of the rich and create programs to help the poor.  We watch as the middle class continues to disappear. The FED makes credit easy, and America borrows.  This borrowing inflates the money supply, which later inflates the prices and salaries.  To combat inflated prices we passed laws for minimum wages.  To combat rising costs we create more government programs to help those in need.  With government programs we fix prices so they never decrease.  We continue to repeat this over and over again; tax increases and decreases give illusions of reasonable income so government can continue to borrow and waste money.  We have destroyed the flexibility of free markets and continue to do so when it tries to tell us otherwise. 


We've borrowed from the future always expecting to figure the “big problems” out later. The future is here the future is today!  Its always been said that we were leaving debt for our kids and grandkids to figure out but its become more of a reality that we have created debt for ourselves to figure out. The value of money continues to lose its wealth overtime a hidden tax that no one takes into account.  We are merely borrowing and spending to sustain our unsustainable life styles. This is like trying to pay your credit bills with more borrowed money. Consumer economy is a myth. When the multinational corporations are done robbing America, they will simply move out to suck the blood of other growing nations. They are working hard to create consumer culture elsewhere around the globe, and they want to take as much as they can and pay as little as possible. In America consumers consume, go into debt and become poorer.  Someday if we don’t realize how to correct our bad habits the Governments Free Lunch of a free nation will be over.