This week Congress will vote on a stimulus package that, as I have previously written, is more package than stimulus.
Worse, I fear that this short term plan could do long term damage to the economy. And I’m not alone in this. In a recent edition of Forbes, economist Bruce Bartlett warns:
“Thus the argument really boils down to a question of timing. In the short run, the case for stimulus is overwhelming. But in the longer run, we can’t enrich ourselves by borrowing and printing money. That just causes inflation.”
By pouring nearly a trillion dollars into the economy, we are almost certainly risking a rise in inflation. Why worry about inflation? Because inflation taxes everyone. When the price of goods goes up, we all pay for it.
That’s just another reason for President Obama to think through the stimulus plan before signing it. We don’t need a cure that’s worse than the illness.
-Randy Hill
