So You Want To Boost The Economy? End Affirmative Action!

"Whenever someone gets preferential access to a job or a promotion because of his race or ethnicity, someone else of a different race or ethnicity gets displaced. In the U.S., the displaced person is usually a non-Hispanic white. "

With America having ruined its finances through excessive debt, the new administration is urging more hair of the dog that bit us: borrowing another $820 billion or so for “fiscal stimulus”.

Of course, in all the infrastructure spending in the Democrats’ bill, there’s no mention of beefing up or speeding up one massive infrastructure project already underway: the lagging border fence.

The rationalizations for the stimulus keep changing. Obama’s latest featured money pit—wind and solar energy!—being a desperate throwback to last summer when gasoline prices were twice as high.

Sure, none of it makes much sense. But for Obama, politically, it’s a no-lose proposition. Either the economy gets better and he takes credit; or the economy flatlines and he demands more fiscal defibrillation.

In either case, he gets to give huge sums of other people’s money to the politically well-positioned. The taxpayers will eventually have to pay for all the new borrowing, but most of the bill will likely come due after the 2012 election.

Our economic problem, though, is more severe than a temporary downturn. We now know that our purported wealth as of July 1, 2007 was illusory, based on a mountain of leverage teetering on the unquestioned assumption that some drywallers in Palmdale would actually pay off their half-million dollar mortgages.

From 2001 onward, there was no real economic growth in America, just pseudo-growth ginned up by home equity withdrawals. Our trade balance, for example, averaged over 5 percent of GDP throughout Bush’s second term.