March 15, 2009

Eating your fitness ice cream

President Obama's solution to the current economic crisis is analogous to wanting to lose weight or increase your fitness by eating more ice cream.

The housing crisis or bubble was caused by an over-abundance of credit to those who didn't merit it. The problems at GM and Chrysler were caused by them being uncompetitive - including spending more on production than their capacity to do. The problems with the banks were caused by over-lending. The problem with the American economy contains components of over-spending and lack of savings and re-investment. The commonality? Over-spending.

The President's solution? An $800 billion stimulus package. A $400 billion omnibus bill. A $3.5 trillion dollar projected budget deficit. $600 billion plus as a DEPOSIT on health care spending.

Trying to solve debt problems in an economy plagued with debt problems by spending even more is like a 500 lb. man trying to lose weight by upping his ice cream intake.

Unless of course the purpose of the effort is more along the lines of trying to kill the patient.

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