CBO; Stimulus Will Hurt Future Economic Growth

Stimulus spending acts similar to credit card debt. It can accelerate demand in the short run but in the long run it detracts from future purchasing power simply because one can't make new purchases until the borrowed debt is paid down. In a perfect world everyone would pay cash but sometimes debt is necessary and sometimes it is beneficial to the borrower. It may make perfect sense to put a new overcoat marked down 50 percent at the end of the season on your credit card and pay it off in six months provided the interest paid is less than the savings and you do need a new overcoat. Buying a round of drinks on credit for your OWS lodge brothers means that you lost the price of the drinks plus interest from your future purchasing power. Quietly the Congressional Budget Office has admitted that in the long run the stimulus bill will damage the economy.The new report finds, for example, that the stimulus may have added as little as 0.7% to GDP growth in 2010, when spending was at its peak, and created as few as 700,000 new jobs.

Worse yet instead of buying the topcoat it bought drinks for its friends. Most of the spending went to pay political debts not to infrastructure spending so now we have neither the money nor the infrastructure. Sending money to prisoners and dead people, underwriting loans to Solyndra and First Solar and giving money to states to prevent laying off teachers and cops left the country $825 billion plus interest in debt with very little to show for it. As the stimulus money began to flow into cities and states they appeared to spend less of their own money so economic activity was not increased but the debt was shifted from state and local governments to the national debt.

"New Company Policy: We are not hiring until Obama is gone."

Considering the economic recovery is the worst since the great depression it's shouldn't surprise anyone that many in the business world have soured on Obama and his hope and change. Bill Looman, the owner of U.S. Cranes, LLC explained; "Can't afford it. I've got people that I want to hire now, but I just can't afford it. And I don't foresee that I'll be able to afford it unless some things change in D.C." After putting the signs on his company trucks he posted it on FaceBook. Eventually the word filtered to the Feds and the Secret Service dropped by to see how subversive he really was but left laughing.