Monday, December 8, 2008

Obama's stimulus package

700 Billion to build Infrastructure?

What will that do? Nothing. To me, it is simply like a bankrupted homeowner borrow some more money to put a new marble counter top in his kitchen before he goes bk.

All these money at best will be used to replacing or repairing the old bridges and roads. We don't need more bridges to nowhere, let alone the bridges to oblivion. So, the stimulus will not provide any additional value to the economy. We will lose tons of 100k+ jobs and create a lot of 70k jobs. It will do nothing to saving this economy.

We need investment in High tech, education(kind of late and won't be fast enough to see effect for a long time). We need to fix the health insurance and medicare system. We need to fix the government. We should have courage to cut defense and govt to 1/3 of it size. Then use that money to cut tax, and lower the medicare cost. We need protectionism come back for at least 10 years. So that everyone can have a job produce something we all need. Without all these measures, we are going to have a long and painful road in front of us.

And again, where will the money come from??? Printing? It could be an answer, but it definitely is not a solution. Yes deficit spending does not matter for now. But still, where will the money come from? Chinese? Forget it, they need money themselves. Arabs? No Way, Crude oil is at 40 bucks now. Japan? I doubt it. Europe are all going broke. And don't count on Mexico, cause we don't need pesos.

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