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Cash For Clunkers?


Location: Unknown

Dear Friend,

While we have yet to see a net jobs increase as a result of previous federal stimulus packages, yet another stimulus package is being proposed. It is no longer being called a "stimulus," though, but "Proposals to Accelerate Job Growth and Lay the Foundation for Robust Economic Growth," or, as the President described it, "Cash for Caulkers."

We saw an evolution in the terminology used to describe the public-option in the proposed health care reform bill. That evolution is happening again. Please don't be fooled by a change in how the government characterizes more big-government spending.

This one, we are told, will be focused on "shovel-ready' infrastructure projects such as the construction of roads and bridges. This is exactly how the Democratic leadership attempted to sell the stimulus package I voted against in February. Instead of infrastructure, the money went to wasteful pork projects such as $500,000 for the study of ants in Arizona, $4 million for a bike trail in Massachusetts that leads to Taco Bell, and $2.8 million to fight forest fires in Washington, DC, where there are no forests.

How will this new package be paid for? Well, there are already tax increases scheduled to come in 2011, if not earlier, as well as more federal borrowing. This is something I will continue to watch and will keep you updated as the plan develops. Please fill out the survey below and tell me what you think.

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