Saturday, January 24, 2009

Obamanomics - Part 2

I have a few problems with this plan.

  • Doubling renewable energy - It really depends on what kind of renewable energy. I've chronicled much about the downside of renewables, but it has a place. If this is windmills and solar panels...ok. I can live with it. If this is fuels made from the food supply, it's worse than a bad idea. Ethanol from corn, for example is no better than a break-even proposition. That is, it takes at least as much energy to produce as it provides. Many critics are not that generous. It also burns less efficiently than gasoline, resulting in more emissions per mile. Last, it reduces the corn surplus so less is available to feed the hungry.

  • I don't see how upgrading schools either helps children learn or stimulates the economy. Same with tripling the number of college fellowships in science. No stimulus there either.

  • At what cost do we "save" $6 billion by making federal buildings energy efficient. And again, how does that stimulate the economy?

The broad plan puts heavy emphasis on infrastructure that crumbled as state budgets contracted. Governors have lobbied Obama to help them patch holes in their budgets, drained by sinking tax revenues and increased need for public assistance like Medicaid and children's health insurance. Obama's plan would increase the federal portion of those programs so no state would have to cut any of the 20 million children whose eligibility is now at risk.

State budgets are crumbling not because of the current economic downturn, but rather, as we've seen in Wisconsin outrageous spending decisions by state governments. Bloated bureaucracy, high wages and ridiculous pensions and benefits are killing state governments. Not to mention Leftist programs like BadgerCare and SCHIP.

The only jobs this will create are more government jobs that will result in a more bloated federal and state government. Let's do the right thing and cut tax rates as put forward by Representatives Boehner and Cantor. The only thing that fixes this mess in short order is putting money back in the hands of those who will spend, save and invest.

2 comments:

Dad29 said...

The only thing that fixes this mess in short order is putting money back in the hands of those who will spend, save and invest.

It's not the money they want.

It's the control.

Deekaman said...

You are correct. None of this is about fixing the economy. It's about power and control.