I thought we didn’t need another stimulus

Maybe I’m wrong, but I thought the economic stimulus bill signed by Barack Obama was sufficient. Months after it passed, it received criticism from many conservatives as the unemployment rate rose. The Obama Administration and other liberals stated that this criticism was incorrect, since much of the money hadn’t been spent. We were assured by these liberals that the stimulus was indeed successful, and may have rescued us from the brink of depression. What has changed?

Despite the alleged success of the first $787 billion stimulus, we might be looking at yet another round of excessive government spending. This plan would be financed by TARP money that is being paid back by banks and a new financial transactions tax which could raise $150 billion per year.

If you haven’t been following the financial transactions tax bill, it would charge a tax of approximately 0.25% on financial transactions, such as the sale of stocks, bonds, and other securities. Many Democrats love the idea and find this idea palatable, since only the “wealthy” invest. (They must not get out much).

Fortunately, I don’t think the financial transaction tax will go anywhere. Besides having some Democrats opposed, it would also require all of the members of the G20 to pass similar laws. If they don’t, customers could just move their accounts overseas and avoid the tax. I find it unlikely that every country in the G20 will pass this tax, and think there might even be a few countries that would become safe harbors for cash.

As for the stimulus, I think it will have trouble passing. With all but one Republican opposed to the first bill, I don’t see much GOP support this time around either. Plus, Barack Obama’s falling popularity will hurt when trying to convince moderate Democrats to vote for the bill. He doesn’t have the political capital he had before, and that will be quite evident if another stimulus is suggested.