Thursday January 29, 209

Stimulus Package - The stimulus package (which I vehemently oppose) is the perfect political project.  You see, politicians have no accountability. 
        Salesmen have to meet quotas.
        Managers have to make budgets.
        Even line workers have to get so many pieces completed.
        Companies have to make profits for their shareholders.

But the politicians never set objectives for themselves or their projects.  The last one that offered a benchmark was Jimmy Carter, when he identified the "misery Index" (inflation rate plus unemployment rate) to explain how badly President Ford was handling the economy.  Problem was, the numbers got even worse under a Carter Administration, and Reagan succesfully used the same benchmark to take the White House.  Few politicians have made the same mistake again.

The Stimulus package is a perfect example of this.  There are no expectations for the economy when this is implemented, only that it will "improve".   And in two to three years, when the impact of this package is finally upon us, both Republicans and Democrats will be able to point to the results for the justification of their position.

If the economy is still faltering, Democrats will say, "It would have been even worse, if the package hadn't been created,"
And if the economy is booming, Republicans can say, "This would have happened anyway."

Neither side will really win, but more importantly, NEITHER SIDE WILL LOSE.  And at the end of the day, it's becoming increasingly clear, that's all that really matters to the long serving politicians in Washington.  

Blagojevich
       Word is that Blagojevich may resign at the end of his speech today before the Illinois Senate.  I've got nothing very insightful.  One interesting item:  Whether Blago resigns or is removed via impeachment, he still retains his pension.  It's only if he is convicted of a felony that he would lose his pension benefits.  

 

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Comments

  • 1/29/2009 1:14 PM A wrote:
    Politicians use "Mark to Market".
    If it sounds like a good idea that will benefit their constituent's "ME" mentality, they reap the political benefit immediately. The end results of the projects, however devastating to our country, garner no negative impact to the "creators" of these programs.
    Reply to this
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