The Trillion Dollar Spending Plan: Why Spending Does Not Equal Stimulus
Startling Stats On Trillion Dollar
- The Senate spending bill of $900 billion is equal in size to
the entire economy of Australia. It is twice the size of oil-rich
- It is enough money to provide every current high school Junior
and Senior student a four-year education at a private university,
and still have $150 billion to spare.
- The House spending bill last week of $819 billion is equivalent
to borrowing $10,520 from every family in America. This
borrowed money equals what the average family spends on food,
clothing, and health care in an entire year.
- 2010 spending from this bill would more than double New Deal
spending in 1936, in today's dollars. Despite doubling federal
spending, unemployment after the New Deal was enacted remained
above 20 percent until World War II.
- More recently, Japan responded to a 1990 recession by passing
10 "stimulus" bills over 8 years (building the largest national
debt in the industrialized world), and their economy remains
- By inserting a Davis-Bacon labor-wage provision into the
legislation, leadership has automatically tacked on an additional
$17 billion in spending to protect distorted, inflated and often
inaccurate special interest regulations.
Liberal Agenda Disguised as Economic
- Health Care : Today, government already controls 46% of
all health care spending, dangerously close to an irreversible
tipping point. Medicaid's expansion in the Pelosi-Reid-Obama
Spending Plan is a blitzkrieg tactic against the private sector
that will stifle innovation and quality.
- Education : Since the 1970s, federal per-student
spending has more than tripled while student test scores and
graduation rates have remained flat. Despite this, the
Pelosi-Reid-Obama Spending Plan doubles the annual budget of the
federal Department of Education.
- "Green Jobs" : The idea of "green jobs" merely means
attempting to replace one lost job with a new job that fits the
left's agenda. It is a zero sum game. No net jobs are created. The
Pelosi-Reid-Obama Spending Plan more than doubles the Department of
Energy's budget from $23 billion to $58 billion.
Creating a Government Debt Bubble
- Combined with TARP, this spending plan will increase total
federal borrowing in 2009 by at least $1.9 trillion, ballooning the
national debt to $8.3 trillion. This massive debt is likely to
create a long-term government debt bubble that will increase
interest rates, thus deterring private investment and further
extending the worldwide recession.
There is a Better Way
Check out Heritage ideas for how to provide twice the jobs at
half the price at heritage.org.