OT: Stimulus Bill - Explained

[T-Bone]

Thought this was pretty good


This explains the American Stimulus package as good as anything......

Shortly after class, a student approaches his economics professor and says, "I don't understand this stimulus bill. Can you explain it to me?"

The professor replied, "I don't have any time to explain it at my office, but if you come over to my house on Saturday and help me with my weekend project, I'll be glad to explain it to you." The student agreed.

At the agreed-upon time, the student showed up at the professor's house. The professor stated that the weekend project involved his backyard pool.

They both went out back to the pool, and the professor handed the student a bucket. Demonstrating with his own bucket, the professor said, "First, go over to the deep end, and fill your bucket with as much water as you can." The student did as he was instructed.

The professor then continued, "Follow me over to the shallow end, and then dump all the water from your bucket into it." The student was naturally confused, but did as he was told.

The professor then explained they were going to do this many more times, and began walking back to the deep end of the pool.

The confused student asked, "Excuse me, but why are we doing this?"

The professor matter-of-factly stated that he was trying to make the shallow end much deeper.

The student didn't think the economics professor was serious, but figured that he would find out the real story soon enough.

However, after the 6th trip between the shallow end and the deep end, the student began to become worried that his economics professor had gone mad. The student finally replied, "All we're doing is wasting valuable time and effort on unproductive pursuits. Even worse, when this process is all over, everything will be at the same level it was before, so all you'll really have accomplished is the destruction of what could have been truly productive action!"

The professor put down his bucket and replied with a smile, "Congratulations. You now understand the stimulus bill."

[Arkansas]

Funny thing is, many people used to say that trickle-down economics don't work. That is to say, giving big business tax incentives to create new jobs, didn't work. Now the President's plan is basically doing the same thing, except he's putting direct cash in the politician's hands to distribute in the form of local work programs. And in all fairness, there's a a little direct consumer cash too.

But who's better at stimulating the economy by creating jobs? The business owners, or the politicians?
Interesting paradox.

I for one think trickle-down does work and did work. I don't think it worked overnight like many expected, and I do think that corporate gluttony disallowed some of it. However, for the most part I think it did work...just several years later. President Clinton was a direct beneficiary of it. What he did while in office had the benefit of what Reagan & Bush41 did.

I hope what our current President is doing works too. But honestly, I don't trust too many politicians. Power corrupts...on all sides of the aisle. If any of these billions ever make it to my neck of the woods, I'll be really surprised.


later~