Wednesday, February 18, 2009

Braindead Economics

Our government is being run by people who do not understand the first thing about economics. Want proof they are doing the absolute WRONG thing?

Consider the so-called auto bailout oif 17 billion dollars in December.

In under two months, they have pissed through that and are now begging for another 20 billion. They accomplished nothing. They created zero jobs.

Now let us assume for a moment that Mom and Pop's little manufacturing firm that makes furniture, and has 20 employees, was given just $1 million. With that, they could hire 20 more employees and increase inventory, to produce more product. This results in a net gain of 20 jobs and an increase in GDP.

Now let us assume we used that 17 billion to pump one million into each of 17,000 small businesses. Instead of the ZERO new hires and ZERO GDP produced by the auto industry, those same funds could have created 340,000 jobs immediately, and increase the GDP substantially.

Moreover, those small businesses would not have any need to be back at the trough, because the increase in productivity increases profits.

Our government needs to stop and realize that you get much more bang for the buck when you help SMALL business, not BIG business.

Another fact: even if you do manage to save GM, that will benefit Detroit. The rest of the nation will still face serious problems. By helping 17,000 small businesses, you help 17,000 towns and cities across America.

Now let us see what we COULD have done with the Pelosi/Obama stimulus money of $787 billion. Using the same figures as above, $787 billion used to pump up small businesses across America could provide funds to 787,000 businesses and result in a net gain of 15.7 million jobs - enough jobs to put EVERY unemployed American to work, and still have enough jobs left over for 3 million legal immigrant workers wanting to come here.

Now let us assume each small business spent 25% of that money to build an addition so they could increase hires and production. That puts contractors, plumbers and electricians to work. It creates sales at lumber yards and hardware stores, lighting, plumbing. Contractors, paving bigger parking lots.

Instead, we have a dead economy, and only a possibility of 3 million jobs created OR SAVED.

What really surprises me is that all of Obama's great financial minds cannot see this. But according to quiznet, President Obama has an IQ of 127. That's barely better than average (98). That would explain a lot. Former NH governor John Sununu had an IQ of 156. My daughter's IQ also 156, which barely surpasses my own. Perhaps Obama could get some tips from her :o)


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