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Infrastructure Impotency
December 26th, 2008Like an aging porn star, Obama’s infrastructure-focused economic stimulus scheme fails to rise to the occasion.
One can contemplate any economy as a cube (or a matrix for the computer programmers amongst us). Cells in economic matrices are weakly interconnected. When lagging, an economy should be stimulated so every cell has money to spend, save or invest depending on what people therein need and want most. Once inseminated, economic intercourse resumes between the cells.
Yes, economics is dirty especially when politicians are screwing you.
Obama seeks to impassion the economy by (re)building infrastructure such as parkways to patrons, bridges to backers and damns to donors. It is Obama’s reliance on specific political cells in the American economic ecosystem that will doom the States to a prolonged recession while reinforcing Obama’s infrastructure — his political base — for the next two campaign cycles.
Three vectors sweetly summarize people who collectively comprise the economy including all those Obama purposefully leaves behind. First, people are spread across geography from coast to coast and border to border. This includes big cities, sleepy suburbs and rural ranges. Obama’s infrastructure programs target places where infrastructure already dominates, the mega metropoli. Big cities backed Obama and now rural taxpayer-financed infrastructure projects will back big cities. Think of this program as both a payoff and a down payment to his core voters. People in small towns, rural regions and even the suburb-bound middle class don’t get their money shot.
Obama arrogantly amalgamates all people as plebeians, assuming that the ignorant masses know how to pour concrete and tie rebar, and that they will move off their farms to build bypasses. Our economy is composed of a genetic soup of people who code software, style hair, pilot planes, bake cookies and invest money. Obama’s infrastructure spending provides zero direct economic stimuli to most of the people powering the nation. Any indirect stimuli from his trickle-down economics will be small, localized and unlikely to increase demand for computer software, air travel or a new dos (no use spending big for a new hair style that you’ll hide under a hard hat).
The remaining economic vector is wealth or income. Everyone spends or invests money to the benefit of someone else. Willie Brown, San Francisco’s mayoral maven and steadfast Democrat chided San Francisco swells who thought it good form to cut back on holiday parties in deference to the hard economic times. Willie wisely reminded them that a lot of caterers, waiters and booze slingers count on well heeled soirees to stimulate personal economies. George Bush the Elder destroyed the American yacht building industry by instigating a luxury tax and putting on unemployment compensation nearly everyone who laid fiberglass or ran cables in new yachts. Real economic recovery requires improving the fortunes of the rich, the middle class and the poor. Construction company owners are the only wealthy people who stand to benefit from Obama’s flaccid tactics.
Envision the economic cube above with only a dozen cells lit. That is Obama’s economic vision, one that leaves nearly everyone in an economic drainage ditch. Big city unionized workers and their bosses however will do quite well and have excess campaign donations come 2010 and 2012.
The real solution is across the board income tax reduction, preferably small, steady, and repeated each of the next four years. Everyone, everywhere, in every profession at every income level receives instant relief and will spend or invest as best suits their needs. Every cell in the economic cube will be lit and money once again will boink betwixt. But during the campaign Obama said his mission was to make “government cool again” (which it never was). Relying on the people to keep and make the best use of their own money cuts government out of the equation.
To Obama, that’s not cool. What a tool.









