Obama's Senate Stimulus Bill Passes......Now What?
The International Institute of Nonviolence
By: Rev. Jermano
The Senate passed the Obama stimulus bill. The vote was 61 to 37. The bill is 838 billion from the Senate while the House of Congress passed their version of 819 billion. They are both significantly different....in that the Senate version has more tax cuts and less than the amount of spending the C.House approved.
It is not a done deal...in which now they have to come up with an agreement. Now putting the two together.
This stimulus package is in my opinion a balancing bill that takes care of the people in creating jobs for main street. The 700 billion package that Bush engineered just before his term ended was a bank bailout used to try to stimulate lending by banks who went insolvent because of fake assets, and really the failed employment market that left people without income to pay their mortgages.
So Bush did not take care of the problem....and now President Obama is here to balance the debt burden. Now we have a protracted 1 trillion 500 billion total debt. Clearly the tax cuts in my opinion are useless, because those tax cuts do not put money in the pockets of the people right away.
My idea would be to approach the Republicans about their failed tax cuts ideas that have literally never worked....even during Reagans administration...because he had the most bank failures during his tenure than any sitting President......that being to change their approach to improving the conditions.
We know that Republicans think taxes are bad for the economy....While they enjoy the benefit from high interest rates at Banks they collect from people when they take out loans to run their business. This builds the debt cycle of higher and higher debt. The banks mostly run by republicans earn easy interest profits...and by cutting taxes assures them a long protracted time to pay off debt....which helps them. They like government debt....don't let them fool you. The more debt they place on the government the more long term easy interest payments they collect from borrowers of the money...to include the US government.
When Democrats ask for increasing taxes, it literally decreases the amount on the debt. and the Republicans get less earned easy interest profits. They don't like that.
Given that the US needs to create jobs....they needed to pass this Obama stimulus package. My proposal is in order to get banks lending again....they need to assure the banks they will get their money repaid.....this means the need for jobs creation to do that. That assurance is by increasing taxes....which republicans are so blind to recognizing in order to create jobs.
I would disagree with the Senates version of the bill with more tax cuts....because it does not assure the banks any good will or security. What the Republicans need to do is have the banks provide near zero interest loans to the people, to make lending more available....with the banks knowing that people will be paying higher taxes. Those higher taxes are the revenue flows that provide the banks its security for lending.
There is only two things they can do....
1. Low Loan Interest Rates....with higher taxes...............or
2. Higher Loan Interest Rates.......with lower taxes....which is the current tax cut failed policies of the Republicans for the past decade.
Option number one is clearly the answer.........and it is not a debate about socialism vs. a capitalist market place... It is a realization that neither can survive without the other, and mangagement is the key to regained prosperity.
I think the stimulus will work when new jobs are created....as long as they assure low inflationary pressures.
Obama would also be smart about reducing the military budget, and using that money for envirnomental green tech job creation. Really I would like them to become the Environmental Enforcers......instead of Oil and Big Business rapers of the earth.
Obama also needs to consider a cap for Real Estate Home values. People don't want to talk about this.....but there is a time when the age of a home must reflect true values. Those values do not reflect market demand......but old age reality. As people promulgate the bottoming out of the home mortgage crisis.....they need a reality check on the ceiling value of Real Estate instead.