CONFUSION

Who to believe? . . . about fiscal policy. Here's the way I see it.

The problem . . . banks with money are reluctant to lend it to individuals and small businesses. Individuals with money are reluctant to spend it. Small and large businesses have laid off employees and are not hiring new ones.

The reason . . . banks, individuals and businesses are holding onto their money and not hiring because they are unsure of the future. People who are confident of the future will spend money.
If you believe you will always have a job, you will borrow money based on that confidence. Businesses will put in inventory if they have a good expectation of moving it quickly. Banks will lend money when they are sure that the borrower will be able to repay. There is uncertainty at every level of the economy.

President Obama and his liberal Democrat faithful would have you believe that the government spending money or giving money away to favored segments of the population will stimulate the economy. It will never work in the long run. People will not fool themselves. Everyone but an idiot knows the difference between a one-time windfall and a steady income. Only idiots think that people won't know the difference.

Giving money to people to buy new cars only compressed car buyers into a short time period. Things looked good while it was going on but the car business is miserable now. Giving money to home buyers only compressed home buyers into a short time period. Things looked good while it was going on but the home industry is miserable now. No one bought a car or a house that wouldn't have done it in due time. This tactic will not work in the long run. Giving our money to government sponsored mortgage companies has kept them afloat for now but they are dying a slow death.

We have to stabilize economic conditions. Its the only way. We have to give everyone the confidence that things will not change radically. More important, at this time, than low taxes is frozen tax rates and laws. Our economy works. Let it work. Let's get the government out of the way.
:o)