The "DO NOTHING" Stimulus
Today, after his speech, the President was asked if his new economic proposals were another “stimulus.” He laughed because he knows the first stimulus is not looked upon favorably by the majority of Americans and he’s doing all he can to avoid the “stimulus” label. However his response was even more revealing about a major disconnect the President has with regard to the government’s appropriate role in economic affairs. In his response, he asked, “isn’t that what I should be doing?”
Given our government’s economic track record on health care (Medicare and Medicaid), retirement (Social Security), housing (Fannie Mae and Freddie Mac), financial stability ($12T debt), mail delivery (post office losses), public education ($25K per child) and a host of other economic interventions, the resounding answer should be “NO!”
The word “stimulate” implies action. The government’s role is better characterized by inaction, by getting out of the way.
Let the Capitalists run the economy. Do “NOTHING” to help them and “NOTHING” to hurt them.
Ironically, that will be the best stimulus of all.