The Hotblog Stimulus Plan

The popular and political "best plan" for solving our current economic doldrums is for everyone to use lots of credit and spend lots of money. Led by the government. The same thing that got us into the mess... So I'd like to proudly say while biting my tongue that I'm doing my part. First my hot water heater needed replacing, then a refrigerator. Not exactly cheap or purchases we could put off. Then, something that we have been putting off for a while ... my wife bought a new car. The timing seemed advantageous before California sales taxes goes up by 1% and vehicle registration fees go up a hefty amount next month and while sales are slow and it's a buyers market.

I'd say we did more than our fair share to stimulate the economy. Oh, but maybe not in the way our government wants. We used money we had instead of diving into deep debt. In that regards I'm glad we didn't take after the U.S. government's example.

President Jackson Told You So

Andrew Jackson, 1767-1845, our 7th US President faced down congress to revoke the charter of the central bank of the U.S. in 1836. His quote:

The bold effort the present (central) bank had made to control the government ... are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it.

When he opposed congress and revoked the bank's charter he is quoted as saying:

Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves.

This sure sounds to me like it applies to the current mess - oops to late. Instead of one central bank we have several large institutions. Our government, using the noble cause of reinvigorating our economy and resolving real hardships, is bailing out the den of vipers and thieves that they are beholden too. These companies should be held to their failings and dismembered so that the more responsible companies can flourish. Otherwise we just have a continuation of the system where, when times are good money flows freely into certain big pockets but when times are bad those pockets are protected and the institutions and public get to make good any losses.