Let's just assume for a momet that we, the United States, does not borrow 40 cents of every dollar the Federal government spends. I am fantasizing just to show the stupidity of what is to follow. For the sake of this illustration we will make believe that our Federal government lives within its means and that every penny it spends it has revenue to cover.
Now here is the stupidity:
"If you talk to economists, they will tell you there are two things that are the most stimulative that you can do -- one’s unemployment insurance, the other’s food stamps, okay?”
Okay? Got that? So according to Stenney Hoyer (D-MD), former majority leader of the House of Representatives, and some unknown economist if you give people food stamps and unemployment checks, it stimulates the economy. Not only that but it is the most stimulative. I guess this would mean that it is more stimulative than let's say starting new businesses and hiring those unemployed and letting them buy their own groceries? Which begs the question why doesn't everyone collect food stamps and go on unemployment then the country's economy would be humming, right?
This is where we have sunk to as a nation when very prominent national politicians actually talk this way. It is understandable though, Hoyer is a big government hack, that is the way he views this nation, not as a dynamic country full of individuals seeking opportunities but rather as a nation of mouths to feed and votes to buy.
But to understand how truly malicious this way of thinking is consider how he explains this:
“Why is that?” Because those folks who receive those resources must spend them. And they’ll spend them almost upon receipt. Most economists with whom I talk believe that those with significant discretionary income, that that’s not the case.”
Consider how absolutely stupid this statement is. If you are unemployed to the point where you are dependent on government for your basic survival, then you are good, you stimulate the economy. However if you have significant discretionary income then well you are not really helpful to the economy, I guess this is because you will...what? Not eat? Because as anyone with a lick of sense knows, a person on unemployment and food stamps is just getting by-if that. They are paying what bills they can or have to and probably not all of them regularly and they are eating.
However those unstimulating significant discretionary incomers, well they just pay their bills and can afford to do all sorts of things with that nasty discretionary income, none of which according to the powerful but stupid Congressman Hoyer, helps stimulate the economy. Based on Hoyer's theory the less you have the greater benefit you are to the nation's economy whereas the more you have the less helpful you are to our nation's economic well being. Stupidity.
For those who may be offended by my calling Hoyer stupid I will only say that if he is not stupid, then he is in fact evil. Evil for demeaning the citizens of the nation he is supposed to serve and evil for promoting stupidity as national policy.
So let's get back to where I started, you know the make believe world where the US Government is responsible and run by adults instead of children like the Honorable(?) Stenny Hoyer (D-MD). Where the Federal Government runs a balanced budget or anywhere close to it.
Let's also pretend that the United States is thirty families and five of these families find themselves in hard times. These five families need help and we as a nation have decided we will do what we can to help those in need, So Steny Government is going to provide unemployment benefits and food stamps to those five families.
But where does Steny get the money? Well Steny could just print the money, but what backs the money, what gives it value? Unless something gives money value, it is just paper. So what gives Steny's money value? Steny's money has value because he got it through taxing the families of the nation. Why does that give Steny's money value? Because Steny's money now represents the labor of those who earned the money to pay the taxes to government. The peoples labor gives money value. It really is that simple.
So these thirty families are the nation's economy and their labor is the primary source of the nation's wealth. They are providing each other services and goods in exchange for money which is just a medium that we use to represent our labor. Now the five families need help so Steny Government has no money of his own so he taxes the families of the nation to help them, all is well.
But wait, Steny Hoyer told us that food stamps and unemployment would stimulate the economy.How? How can taking money out of the economy and running it through Steny's grubby little hands and putting it back in the economy cause it to be stimulated? It can't, it's a myth, it is stupid and it is an evil deception that politicians have been foisting on the public for decades. Robbing from Peter to pay Paul does not create assitional economic activity it just transfers wealth from the haves to the have nots.
How do they get away with it?
Simple, the money isn't really taken out of the economy, not all of it anyway, Not 40 cents out of every dollar currently. It, like my nation of thirty families, is make believe. The money they use is either borrowed money or printed money that has less value and when money has less value the labor that backs it has less value. It is not a theory, it is reality that the less the value of the money, the less the value of your labor expended to earn it.
But what if it is borrowed money? Well then it must be paid back and that means more taxes (more of your devalued labor). But borrow enough and you won't be able to pay it back in your lifetime or at least in your term in office so what happens. It is your children who must pay the bill-your bill. It is your children and grandchildren's labor which is being spent. They are serving you with their labor, you are their master even from the grave.
And that is how the Steny Hoyer's of the world get away with it, they sell future generations of American's into slavery and call it stimulus. But nothing is being stimulated because when working people pay others not to work there is less labor to tax and it really is as simple as that too.
Personally I think that Steny Hoyer is both stupid and evil, but that is just me.
"I sincerely believe... that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale."
--Thomas Jefferson to John Taylor, 1816.
But I'm in good company.