Friday, February 06, 2009

Federal Bail Out Paralysis

Of the two methods to help the economy, the federal infusion of capital is logically the best choice. 

What better way to get things moving again than by have your best "Customer", the Fed, put in a big order (a bridge painted, and road fixed) to the company (you and me).

However. 

In all government projects of this scale, there is fraud, corruption and the legendary government efficiency. That sets back the stimulation by %50. Now it ain't so pretty.

So a 800 Billion dollar project is now 400 Billion.

So then there is plan B

Tax cuts. While not a sure fire way of boosting the economy, its actuality the best option and most efficient per dollar.

Now about that paralysis; Doing neither is the worst. A struggling entity that may receive a load of cash in the future can now sit back and claim full stop we are doomed. There is no incentive to figure out the hardship, work it out. This then breeds victim-hood attitudes and further deteriorates our economy. 

Thanks Obama.......but no thanks.

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