The Deep Insight

Does the United States really need a stimulus package?  The economic turmoil that hit the financial markets seems to have subsided for the time being.  The Dow Jones is no longer seeing the huge fluctuations that we saw before the holidays.  In matter of fact the Dow Jones has gained over 500 points in the last week before today’s loss.  The Dow Jones lost 80 points before settling at 8,952.89.

That’s not too bad considering what we have seen in the recent past.  So is it possible that the economy has “bottomed out” and is ready to make a come back?  Stability in the market is key to bringing back investor confidence and capital into the market. I think that the market has achieved this stability.  I am by no means a economist but it seems to me that things have started to level off and that people will be investing more over time.  It might take longer than many people want it to but the economy will bounce back.

That being said, why do people believe that the government can end this recession?  The government does have some effect on the market but by all means it does not control it.  Government will not save us from our economic situation!  Printing up more money and pumping it into the economy is not going to help, it will hurt us.  The value of the dollar will plummet and make things more expensive to buy.

 The next time you want to go buy a DVD player or something like that, instead of paying $50, you’ll pay $65.  Just think of the saying, “your dollar just doesn’t stretch like it use to”. The purchasing power of you hard earned cash goes down.   Have you ever heard your grandparents say ” Back in my day gas use to be .10 cents a gallon?”  Now the price of gas is hovering around $1.50.  This is due to inflation which is caused by excessive growth of the money supply in relation to the productivity of the economy.  Increasing the money supply in a slow economy is only going to make things more expensive.

Imagine if the government put another $800+billion into the economy on top of the $700 billion from the Trouble Asset Relief Program or TARP.  Prices of commodities and staple goods will go up.  Mark my words things are going to get more expensive around here.  Also,  If your considering traveling overseas for a vacation, forget it. You won’t have any money to spend! Converting dollars into foreign currency like the British Pound or Euro will become increasingly expensive for you.

I am firmly opposed to this stimulus package because I believe it will do more harm than good for our economy.  I think the politicians are only responding to the “instant gratification” culture that is present in this country.  The politicians want to win elections and stay in power plain and simple.  In order to do that they have to please their constituents.  Tell everyone the sky is falling and that you have a plan, presto you look like the instant hero.  Unfortunately most of the American people bought it hook, line and sinker.. I hope the Republicans or anyone with a backbone will stand up to this stimulus package.. Oh wait who am I kidding they’re all spineless chumps anyway..

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