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Wasteful socialism VS economic stimulus: know the difference
Our pastors have gotten a lot of confused emails from people who don't understand why the Republican Party voted for the $700b Wall Street bailout while voting against a proposed $15b loan to the auto industry.
As most of you know, I'm an expert in Economics and Economic history. So, it has fallen upon me to explain the difference between economic stimulus and wasteful government spending.
What NOT economic stimulus: the auto industry bailout, consisting of 15 billion dollars of loans to the Auto Industry.
Why it's not stimulus: saving the auto industry means more money for people in Detriot. Now, have you ever seen someone from Detroit? They're not like you and me. They will waste all of the money on fried chicken and watermelons, malt liquor and crack. That means most of the money will just end up in Columbia. And of course they have unions, which means their union overlords will take lots of the money, and send it to their bosses in Moscow or North Korea or whatever unAmerican cesspool they take their orders from.
If you really want to help the auto industry, you should allow the free market to dicipline it. A few years of helping their kids pick for food in garbage cans will teach the blue-collar idiots of Detroit that their reckless speculating in "hybrids" and "fuel efficiency" just results in economic disaster. Eventually they'll learn to become financial innovators, and get jobs of Wall Street, where they will actually produce something of value for the first time in their lives.
What IS economic stimulus: the 700,000,000,000 dollar or so bailout for Wall Street. By sending taxpayer dollars to productive members of society, the money keeps moving around, creating jobs everywhere it goes. Just look at some examples of job creation:
Here's a place that is prospering thanks to the Wall Street Bailout. It's the place the AIG executives used their bailout money to create jobs for America:
Oh, and how can I forget the countless repo-men and collection agents that are working thanks to the Wall Street bailouts?
And of course, lots of that Wall Street money will be donated to the Republican Party, and that means employment for musicians, nightclub owners, and yes, even the auto industry (in the form of limo sales):
More on the job-creating horn of plenty that was the Republican Convention.
Two Illustrations of the Difference:
1. Take a look at the recent incident at Republic Windows & Doors in Chicago. The Bank of America, having just recieved taxpayer money, put that money to good use by refusing a loan to the unionized Republic Windows & Doors, and the entire unionized workforce became unemployed. These unemployed bums then occupied the factory demanding some money that some contract promised them. But that money would have just been wasted on crack and malt liquor. Their CEO had a better idea:
2. See if you can figure out this one by yourself. This story has both an example of economic stimulus, and an example of money being wasted:
UPDATE: Members of our mailing list respond
As most of you know, I'm an expert in Economics and Economic history. So, it has fallen upon me to explain the difference between economic stimulus and wasteful government spending.
What NOT economic stimulus: the auto industry bailout, consisting of 15 billion dollars of loans to the Auto Industry.
Why it's not stimulus: saving the auto industry means more money for people in Detriot. Now, have you ever seen someone from Detroit? They're not like you and me. They will waste all of the money on fried chicken and watermelons, malt liquor and crack. That means most of the money will just end up in Columbia. And of course they have unions, which means their union overlords will take lots of the money, and send it to their bosses in Moscow or North Korea or whatever unAmerican cesspool they take their orders from.
If you really want to help the auto industry, you should allow the free market to dicipline it. A few years of helping their kids pick for food in garbage cans will teach the blue-collar idiots of Detroit that their reckless speculating in "hybrids" and "fuel efficiency" just results in economic disaster. Eventually they'll learn to become financial innovators, and get jobs of Wall Street, where they will actually produce something of value for the first time in their lives.
What IS economic stimulus: the 700,000,000,000 dollar or so bailout for Wall Street. By sending taxpayer dollars to productive members of society, the money keeps moving around, creating jobs everywhere it goes. Just look at some examples of job creation:
Here's a place that is prospering thanks to the Wall Street Bailout. It's the place the AIG executives used their bailout money to create jobs for America:
Less than a week after the federal government committed $85 billion to bail out AIG, executives of the giant AIG insurance company headed for a week-long retreat at a luxury resort and spa, the St. Regis Resort in Monarch Beach, California, Congressional investigators revealed today...
"Rooms at this resort can cost over $1,000 a night," Congressman Henry Waxman (D-CA) said this morning as his committee continued its investigation of Wall Street and its CEOs.
AIG documents obtained by Waxman's investigators show the company paid more than $440,000 for the retreat, including nearly $200,000 for rooms, $150,000 for meals and $23,000 in spa charges.
"They're getting their pedicures and their manicures and the American people are paying for that," said Cong. Elijah Cummings (D-MD).
From the website:"Rooms at this resort can cost over $1,000 a night," Congressman Henry Waxman (D-CA) said this morning as his committee continued its investigation of Wall Street and its CEOs.
AIG documents obtained by Waxman's investigators show the company paid more than $440,000 for the retreat, including nearly $200,000 for rooms, $150,000 for meals and $23,000 in spa charges.
"They're getting their pedicures and their manicures and the American people are paying for that," said Cong. Elijah Cummings (D-MD).
From an intimate private party in the Wine Cellar to a black-tie gala dinner in the Pacific Ballroom, the St. Regis Resort, Monarch Beach and its highly skilled catering staff provide the most ideal settings, amenities, conveniences and excellence to make your event memorable.
Not only does this mean employment for skilled catering staff, but also employment for people who are good at massaging kids: Teens receive their own special evening at Spa Gaucin where they have an opportunity to experience an amazing 45-min facial or massage for only $120 (reg. $175). So Teens, gather your friends for this truly “spa”tacular occasion!
Bailouts even create jobs for comedians:More than 300 HBOS bankers enjoyed a boozy £330,000 junket - complete with five-star hotel rooms and a four course meal - while they are being bailed out with £11.5billion (About 23,000,000,000 American dollars) of taxpayers money.
The 302 Halifax/ Bank of Scotland mortgage staff, along with 68 guests, guzzled down champagne while watching TV comedian Patrick Kielty - who charges £20,000 a show - tell jokes...
Walchovia bank is creating jobs on cruise ships:The 302 Halifax/ Bank of Scotland mortgage staff, along with 68 guests, guzzled down champagne while watching TV comedian Patrick Kielty - who charges £20,000 a show - tell jokes...
While waiting to see if the government will relieve it of bad loans, the bank prepares to send 75 employees on a Mediterranean cruise...
"This is one way that we recognize our top financial advisors," she said.
And AIG creates jobs for golf course maintainers and hotel workers:"This is one way that we recognize our top financial advisors," she said.
Moreover, a spokesman for American International Group said the company was going ahead with plans to host a three-day confab for about 150 insurance brokers at the Ritz-Carlton Resort in Half Moon Bay next week.
The hotel's website describes the facility as "an elite golf and spa resort" where guests can "enjoy soothing coastal breezes and captivating ocean views," and "estate-style accommodations."
Rates...more than $1,000 for a suite.
Then they went on to create $500,000 worth of jobs in Los Vegas (also known as the "Wall Street West"):The hotel's website describes the facility as "an elite golf and spa resort" where guests can "enjoy soothing coastal breezes and captivating ocean views," and "estate-style accommodations."
Rates...more than $1,000 for a suite.
The golf and spa outing Sept. 28-30 came just two weeks after the Federal Reserve stepped in Sept. 17 to save AIG from imminent bankruptcy from it's bad bets. The outing for 50 AIG representatives - said by several sources to cost as much as $500,000 - was at the Mandalay Bay Resort in Las Vegas.
A "leveraged buyout engineer" just bought an $82,000,000 yacht, and as the article makes clear, he did it for the sole reason of promoting the American shipbuilding industry:Cakewalk — Gallagher's fifth yacht of that name — features a spiral central staircase with balusters of ivy-like wrought iron, a formal dining salon (with chandelier), a fireplace, an elevator and "Versailles-patterned woodwork." There are six staterooms for guests and separate quarters for captain and crew.
The master stateroom has a separate sitting room, his-and-her baths and walk-in closets. There's a grand piano on board, original art and a walk-in cooler just for fresh flowers...
Despite the size, splendor and cost of the new Cakewalk, it is not the world's largest yacht, or even close to it: On Power & Motoryacht magazine's 2010 list of 100 largest yachts, Cakewalk ranks No. 38
"I wanted to be the first one to demonstrate to the yachting industry that the U.S. shipbuilding capability can produce quality that meets or exceeds the quality standards of the large yachts that are built in Holland and in Germany."
So, all you pro-wasteful-spending big-government collectivists who opposed the bailouts: do you REALLY want American inferiority in the large yacht industry? If so, why do you hate America?Despite the size, splendor and cost of the new Cakewalk, it is not the world's largest yacht, or even close to it: On Power & Motoryacht magazine's 2010 list of 100 largest yachts, Cakewalk ranks No. 38
"I wanted to be the first one to demonstrate to the yachting industry that the U.S. shipbuilding capability can produce quality that meets or exceeds the quality standards of the large yachts that are built in Holland and in Germany."
Oh, and how can I forget the countless repo-men and collection agents that are working thanks to the Wall Street bailouts?
And of course, lots of that Wall Street money will be donated to the Republican Party, and that means employment for musicians, nightclub owners, and yes, even the auto industry (in the form of limo sales):
More on the job-creating horn of plenty that was the Republican Convention.
Two Illustrations of the Difference:
1. Take a look at the recent incident at Republic Windows & Doors in Chicago. The Bank of America, having just recieved taxpayer money, put that money to good use by refusing a loan to the unionized Republic Windows & Doors, and the entire unionized workforce became unemployed. These unemployed bums then occupied the factory demanding some money that some contract promised them. But that money would have just been wasted on crack and malt liquor. Their CEO had a better idea:
New York Times: Republic’s chief executive, Richard Gillman, demanded that any new bank loan to help the employees also cover the lease of several of his cars — a 2007 BMW 350xi and a 2002 Mercedes S500 are among those registered to company addresses — as well as eight weeks of his salary, at $225,000 a year.
See? Now THAT is how to help the auto industry. Fire the blue-collar paracites, and give the taxpayer money to the CEO, who then buys cars with it. Recession solved!2. See if you can figure out this one by yourself. This story has both an example of economic stimulus, and an example of money being wasted:
Roughly 100 employees of the business association [U.S. Chamber of Commerce] ran up an $8,204 tab this week at The Exchange, a sports bar just blocks away from its prime real estate opposite the White House...
...155 pitchers of beer, 37 bottles of beer, 208 mixed drinks, 111 shots, 43 margaritas and 11 open bottles of liquor. Sources who attended the party described it as something akin to a Cancun booze cruise. They reported that drinkers ordered multiple pitchers of vodka and Red Bull and full bottles that they drunkenly left behind at the end of the night...The bill...was reportedly several pages long.
Party-goers put some of the blame on the bar, saying that the waiters who served them had — among other things – slapped an 18 percent gratuity on the bill
...In his e-mail, Chavern asked staffers to contact The Exchange to say that the Chamber will not be patronizing the establishment for the foreseeable future...
Just in case anyone didn't notice, the Chamber of commerce created jobs for waitresses and bartenders, as well as for brewers and distillers, hops farmers etc. But then the waiters got greedy, and now the money won't be spent at their bar any more. Hopefully it will go out of business, diciplining them, and teaching them to eventually become productive members of society....155 pitchers of beer, 37 bottles of beer, 208 mixed drinks, 111 shots, 43 margaritas and 11 open bottles of liquor. Sources who attended the party described it as something akin to a Cancun booze cruise. They reported that drinkers ordered multiple pitchers of vodka and Red Bull and full bottles that they drunkenly left behind at the end of the night...The bill...was reportedly several pages long.
Party-goers put some of the blame on the bar, saying that the waiters who served them had — among other things – slapped an 18 percent gratuity on the bill
...In his e-mail, Chavern asked staffers to contact The Exchange to say that the Chamber will not be patronizing the establishment for the foreseeable future...UPDATE: Members of our mailing list respond
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