Thursday, August 06, 2009

Wait, Where's Our Stimulus?

Yesterday, we were reminded that the government is writing a check to General Motors for $400 million so GM can develop better car batteries.

This check wasn't a loan. It was a "grant." Another word for "grant," of course, is "gift."

The GM news came a few hours before the Senate finally agreed on how best to give car-buyers and car companies $4,500 per new car. These payments aren't loans, either. They're gifts.

Notice that all the helping hands that have gone out are aimed at either those that are "too big to fail" or to those who "can't help themselves".

The formula for destroying a civilization by destroying the middle class is so well known and understood that I can only wonder at what point our President and Congress are accused not just of being wrong about these policies, but in fact of intentionally trying to make matters worse.

While companies like GM (and the banks) may be "hurting" there are many small and medium sized businesses that have already bled to death but aren't big enough to make headlines.

Yes, Microsoft and Google will pay more taxes and deal with more regulators than your average electrician or plumber, but those regulations, taxes and fees will represent the difference between survival or failure for these small companies, while to the big guys (even those not being bailed out) they are simply an inconvenience.

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