Monday, January 12, 2009

Obamanomics

Forgive me. I admit, my economics background is grounded in pure experience. Budgets require that you not spend more than you earn. Borrowing from the future is a bad idea. Having more money allocated to fixed expenses does not promote spending, it promotes cutting back. These are things I have learned via the school of hard knocks, the occasional over expenditure that resulted in a raidings of the savings account, and the brief experiement with a home equity loan.

We spend much easier than we save.

I remember wondering how the dot coms made money. It turns out, they didn't. I remember wondering how people could afford these McMansion houses starting in the low 900's. It turns out they couldn't.

So I'm wondering how taxing to create a 1 Trillion dollar bail out plan will actually result in more money being available. Flooding the markets with money to loan won't be something that people can afford. If we're paying more in taxes, we're not going to want to take on more debt.

The number could be a gazillion or five hundred google and it wouldn't matter. The money has to come from somewhere. If we print too much, the money we have will be worth less. It's been tried before.

Yet, we're going to press on with this plan because that's what the Country needs and people who write for the New York Times even fret that it's not enough. Those who complain are slammed as hypocrites because they spent foolishly when they were in power. So if I understand this correctly, the Democrats are entitled to spend foolishly because the Republicans did.

But the economy shall rise like a Phoenix because we spend this money quickly. I really hope it does, but my own ordinary understanding of economics says this won't work. We can't make the economy sing by taxing ourselves into oblivion.

So you heard it here first. I have coined the phrase, "Obamanomics." You tax to prosperity and when that doesn't work, you tax more.

I'd laugh but this isn't funny.

1 comment:

MightyMom said...

sadly true actually

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