Welfare or Recession

What would most Americans choose when they are faced with a shortage of finances? The new U.S. president, Obama, has introduced an economic stimulus plan marked for $825 billion that will:

• provide relief for families, by cutting taxes, increasing benefits for the unemployed and the poor.
• modernize federal infrastructure
• double alternative energy production in 3 years
• expand health care by providing subsidies for the uninsured unemployed, helping states with Medicaid, and modernizing health care information systems
• improve education
• invest in science research and technology

It is well worth noting, at this point, that Republicans in Congress are wholeheartedly in opposition to this plan, and the only plan they bring to the table is through businesses, by lowering taxes on payrolls and overall business taxes.

Setting these plans aside, looking at the concepts included in this policy, for one, the Republicans are simply griping about a more government-driven economic plan that Obama's administration has instituted and that will be more long-term, filling in the huge hole that has been produced by big businesses, that have no regulation, and are in Republican minds, receiving some more benefits via tax breaks. The Republican argument states that business tax cuts will place more money back into the economy, but for whom, if it is a tax cut? It will go right back into businesses, who are currently laying off people who can't afford to pay taxes, or their mortgages. So we get more recession, because these businesses are not getting effective loans, due to financing freezes, and so in turn these businesses will simply keep the tax money saved. The money train stops there.

The Obama administration has given the American people a lot to chew on. If there is not just long term intentions here, but also a plan that was analyzed to instill long term growth, then it would seem a lot of the items proposed could promote a stabilized economy, and soon. It would be great to see this plan approach government infrastructure in the same way it plans to renovate the health care information systems. If government can go back to limited regulation, and use information technology to enhance transparency of the corporate sector, then there would be more effective oversight of potential corporate financial abuses, which were most likely the root cause of the current failing economy. This would also enhance national security by creating more open sharing of information between agencies. Lastly, there is so much job creation potential deriving from the implementation of this policy.

Taxes are such a limited approach by government. Both Democrats and Republicans are too focused on this issue. In short, taxes only get the American people through the next election cycle, and for Republicans this issue will cater to their lobbying cronies on Capitol Hill. As for Democrats, they are just seeking more votes by the American public, which most likely had a hand in giving them a majority hold. What the Republicans fail to see, is that American businesses have become a political minority in a slow economy, and by reaching out to them, their party could potentially create an even larger rift between party members and loyal voters. The American people will fight this, because it does not foster, what in their minds is individual economic stabilization. Big businesses, are normalizing the economy, and as a result small businesses are being devoured by this. There needs to be a line drawn between the two, and both parties need to provide an opportunity for individuals and small businesses to climb out of a system of handouts and tax breaks.

Instead of resisting each other, both political parties should take the approach of providing the opportunity for Americans to produce and provide growth for themselves, instead of offering us politicized welfare or stimulus handouts. None of this bickering occurred when Congress moved to pass stimulus actions for General Motors or the investment banks. Congress is simply abusing its power when it comes to the interests of the people, but when they need to keep their lobbyists happy, they don't hesitate to pass legislation. Why keep creating this constant system of monetary flow control, instilling a bottomless recession, and only offering the public a limited solution to a much larger problem? Government, stop wasting our time and our dime. Get to work, and work for the people!