We need more stimulation.


The other states that are LA CRISIS!

The other states that are in LA CRISIS!

Will NY be the next state handing out IOUs?

  • State tax collections for the first
    quarter of 2009 showed a drop
    of 11.7 percent, the sharpest
    decline in the 46 years for
    which quarterly data are
    available. Combining the
    Census Bureau’s quarterly data
    with its annual statistical series,
    which extends back to 1952,
    the most recent decline in state
    tax revenues was the worst on
  • After adjusting for inflation,
    legislative changes, and known
    anomalies, tax revenue
    declined in 47 states.
  • The personal income tax
    decline was particularly sharp,
    an unprecedented 17.5 percent
    in nominal terms. The
    inflation-adjusted decline in
    state personal income taxes
    was the greatest in the 46 years
    for which quarterly data are
  • Early figures for April and May
    of 2009 show an overall decline
    of nearly 20 percent for total
    taxes, a further dramatic
    worsening of fiscal conditions
    nationwide. Preliminary figures
    for the state fiscal year 2009
    indicate around 8 percent
    decline in total taxes, 13
    percent in personal income
    taxes, and 5 percent in sales

Info from the Rockefeller Institute of Government.

Many people are going to look at the above numbers and go, “See the stimulus didn’t work, so we should just let the market, I mean the economy correct itself.”

I don’t agree. To me the above logic is comparable to a doctor giving a patient with syphilis half of a bottle of penicillin and then saying, “You’re not better, so we better just let it run it’s course.”

I don’t know about you, but I don’t want to die from syphilis.

The first stimulus passed in 2008 after Bush realized he really messed up the country.
Then the second one was passed by Obama after he realized that Bush really messed up the country.

I think the second stimulus was too conservative and not taking into account how incompetent George Bush truly was. You know how Obama likes to be positive.

So I’m voting for a third stimulus. I’m not an economist, but from looking at the numbers above it looks like it wouldn’t be a rush to judgment (the people who talk this give it time silliness assume that you don’t know how to read the above charts or any charts at all that don’t come with naked people or movie stars)  to assume the conservative stimulus package that was passed isn’t going to quite give the economy the jump start it needs, unless someone plans on killing off all of the unemployed people via a spectacular disease or fancy war.

The people who don’t want another stimulus give very vague reasons, which mainly center on things are getting better.

They don’t look better to me.

They also like talking about inflation.

But that’s stupid. Here why it is stupid put more succinctly by Harlan Green:

“The main inflation worry has been about the enormous amount of government debt. But the U.S. ran twice that amount of debt as a percentage of GDP during World War II that got us out of the Great Depression. Japan’s debt load is even higher.

And we cannot have inflation without rising wages and salaries—which make up more than 80 percent of incomes. Not only have wages and salaries barely kept up with the inflation rate for more than 30 years, but the jobless rate of this recession will reduce incomes even more. The average work week has now dropped to 33 hours—when it was 40 + hours during boom years.”

According to the above Rockefeller Institute of Government Study  personal income tax fell by 17%, so I’m thinking that means fewer people are working and until that number comes back up (which doesn’t look to be anytime soon) we don’t have to worry about inflation.

Let us look at the Great Depression. In the Great Depression there was a real fear of inflation aka preserving the dollar at all costs. The government decided deflation was the way to go.  This is why it lasted so long. (It’s more complicated than that, but this is just a blog.) The gov’t didn’t inject enough dollars, so people kept losing jobs, then everything kept getting worse and worse,  BUT the upside is that people who already had cash. People whose banks didn’t fail and had fixed incomes (i.e. trustfunds,)  came out smelling like roses. Their money rose in value. (It didn’t so much rise, but their purchasing power increased.)

Rich people already know what is going to happen. They know you’re going to be “responsible” and say we should buckle down and say no to more stimulus. The rich  plan on staying rich which is why in September of 2008 they took 550 billion dollars out of their US Money Market Accounts.

So you might understand why a selfish rich guy might be anti-stimulus, because if this country continues to do poorly, his dollar ends up worth more which makes him even richer. Don’t listen to rich people who don’t have degrees in economics or non rich people who have ties to the stock market and work for rich people.

Here are the people with credentials who agree with me that another stimulus is needed.

It is bad out there, but we can fix it, but we need more help from the federal government.

Hopefully this current administration will not allow our whore of an economy to die of syphilis.

The economy promises next time to wear a condom.

By Browne Molyneux

This entry was posted in Analysis, history, La Crisis and tagged , , , , by Browne Molyneux. Bookmark the permalink.

About Browne Molyneux

My name is Browne Molyneux. I'm a lady. I'm a radical feminist. I'm black. I'm an Angeleno. I'm an artist. I'm carFREE. I'm a freelance writer. I'm a blogger. I'm a philosopher. I'm a humanist. I'm a journalist. I formerly wrote a column on transportation, Tracks for LA City Beat. The above are all of the things I have to work on being, got questions email me. browne@shametrainla.com My topics of interests include but are not limited to politics, transportation, dark green issues, economics, race relations, feminism, culture, working class urban life, media, art, Los Angeles and literature.

5 thoughts on “We need more stimulation.

  1. They need to just cut checks out to citizens in general. It always, always works, man. Give Americans money, they spend it, the second they tear it out of the envelope. It’s a time tested kick start. Bush did the same thing, and nobody cared. Barack’s afraid to do it because god forbid, he might get labeled a socialist by right wing critics. As it stands, they’re calling him a hero and a patriot, so he wouldn’t want to ruin that.

  2. I think in general the American public is so scared that they don’t want to make things worse, but you can’t make things worse at this point. We need to try something different. I think alot of people would say no to more stimulus because they think something bad will happen (inflation,) because that’s what Money Magazine and the Wall Street Journal and all of those “honest” politicians that are in bed with Wall Street has told them.

    I’m obviously not an economist, but the only people that inflation at the level that it would be even though its not going to even get to that extreme, even in worse case scenario, is rich people, it makes them a little less rich, that is it. The only reason the wealthy doesn’t want stimulus is so they can buy up more stuff on the cheap. If it gets to the point that stimulus money brings on the kind of inflation, the kind of inflation where money is more valuable to burn for warmth than spend, then we were screwed anyway. That’s not going to happen. That’s the scenario rich people like painting to scare the crap out of regular people like us so we think its best that our neighbors starve. But that is totally insane, just my opinion as I have said before I was a philosophy major I’m simply thinking.

    All the American public has to do is think and demand what is best for the country. Not what is best for the rich people who have money and want to keep it, but what is best for the majority of Americans who cash a paycheck in order to pay rent and eat.

    Next year is going to be so much worse than this if we don’t get some more help. This waiting around and adjusting thing. People who you had drinks with and used to go to concerts with will be living in shelters. There is more job slashing and hour cutting and furloughs to come, this is not the end if we don’t get some more stimulus and that’s what people have to be afraid of.


  3. “unless someone plans on killing off all of the unemployed people via a spectacular disease or fancy war.”

    That can always be arranged.

  4. This is kind of off topic, but kind of not, considering that greed amongst the wealthy class is certainly somewhat to blame for the mess we’re in.

    I was watching something on t.v. today about how Leona Helmsley, who owned the hotels, left 12 million dollars to her dog when she passed away. I guess it all depends on how much the dog spends. If the dog hoards the money, it would be a real waste. But if the dog travels, hits restaurants, tips, etc., that money can circulate back into the economy.

  5. It’s not off topic RobThomas, actually that seems to the logic that many politicians use. Lets give a truly selfish individual who doesn’t care about this country lots of money. Then lets assume that the money that is given to the banks that are taking away people’s homes, invested irresponsibly will some how have a change of heart and decide to work for the good of the people who build this country.

    Then they give it to their lapdogs and we’re supposed to be ok with that, because lapdogs are living beings.

    I’m not happy.

    Maybe we should start eating lapdogs.

    You know I’m going to write about the 1999 repeal of the 1930s-era Glass-Steagal Act. You can trace the free for all destruction of our country from this act. I mean it’s pretty freakin amazing actually. The mirror of the 1920 and the Aughts and the 1930s and now for us going into the teens, the exact same thing happened, well very similar things.


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