Robert Stein 1924-2014

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Tuesday, October 05, 2010

Economic Stimulus of October 2010

Congress is pumping money directly into the economy, but the bipartisan bonanza will end November 2nd.

Republican enthusiasts are spearheading this stimulus by a 7-1 margin of $80 million spent so far compared to $16 million at this point in 2006, with benefactors choosing anonymity far more than ever before.

Democrats may be catching up, raking in $16 million during September alone from small donations that could signify a stirring of the Obama base that has been bombarded with multiple e-mail requests for $5 apiece in recent months.

The irony here is that such relative pin money is being expended in a "debate" wherein both sides are treating the TARP bailout, which has just expired, as politically toxic, despite objective opinion that it kept the economy from going over a cliff.

What's worse is that American corporations are now sitting on their biggest pile of cash in decades--$1.6 trillion--at the expense of retirees and other savers, who are getting nothing in return for the money they prudently saved over a lifetime, and failing to use any of it for job creation.

What's holding the recovery back? Corporate heads must surely be cheered by the prospect that Republicans will be taking over at least one house of Congress, and that the President has signaled his intention to scale back his push for new legislation that might make them nervous.

At this point, only politicians and their backers are plowing money into the economy. Perhaps the answer is to make the election cycle permanent.

Then again, that won't work because it already is.

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