Economics is often seen by liberals as a simple action and reaction game. They create a certain set of rules to solicit a reaction favorable to their policies. However, liberals fail to recognize the repercussions of some of their economic policies.
A light example is the $25 unemployment increase that President Obama pushed into his stimulus plan. This was intended to provide Americans with more money, thus keeping the economy from contracting further from increased unemployment. However, what the President and Congressional liberals failed to understand is that $25 increase would push many households over the threshold for qualification of food stamps. So, while many families are receiving a $25 increase in unemployment checks, they are also losing hundreds of dollars in food stamps.
Now, the liberals have struck again by passing the cash for clunkers bill. (http://www.usatoday.com/money/autos/2009-06-18-cash-for-clunkers_N.htm?csp=usat.me)
The law would allow Americans to receive up to $4,500 if they trade in a gas guzzler for a new car. Analysts have projected that this could boost the car market by 10%. However, it presents the possibility of a new problem. What if Americans choose to turn in their older American made vehicles for new foreign made vehicles?
Let's face it. Toyota is leaps beyond the mpg realm in fuel efficiency (Prius 70+mpg), and the Honda Civic is ahead of American made compact cars. Why would someone trade in their car for an American made vehicle when they might be able to get a better mpg deal from a foreign auto manufacturer.
So the American government is going to spend an additional $1 billion or so that will likely end up in another country. That's liberal economics for you!
Popular This Month
TRUE PROGRESSIVISM: A LESSON FROM TEDDY ROOSEVELT I've noticed in the health care debate that liberals are constantly digging up Te...
I was thinking further about the expiration of the Bush tax cuts at the end of the year and some of the questions I would like to ask our ...
“In the age of financial regulation reform, everyone forgets that the last time we had financial regulatory reform, it l...
Milton Friedman may be gone, but his lessons in economics live on. One example is regarding bailouts. In the late 70s, the government len...
Thomas Sowell, who comes from the same think-tank as Milton Friedman, wrote a book that every American should read. It is a basic interpr...