The $700 Billion Bailout is Good for the Economy

By iamned - Last updated: Monday, September 22, 2008 - Save & Share - One Comment

There is a lot of hemming and hawing regarding the proposed $700 billion government bailout intended to purchase bad mortage loans in an effort help mitigate the worst imaginary financial crisis in the past hundred years. Not surprisingly, the boo hoo hoo pro-Obama liberals are opposed to such measures on the grounds that tax payers shouldn’t cover the tab for reckless lending behavior, and that the bailout would add to the national deficit.

This opposition to the bailout plan is yet another example of the socialist, pro-Obama liberals trying to interfeare with whats best for the US economy and the free market. Printing money is good for the economy and wallstreet. Thats why we need to bailout these financial institutions and later invade Iran in order to drive the dollar lower, and the price of oil and other commodities higher. Rising commodities and a falling dollar benefits numerous export heavy sectors such a technology, energy, and industrials. The war in Iraq created a huge national debt, but since 2003 when the war began the S&P 500 surged from around 900 to a high of 1560; a gain of over seventy percent lead by energy, technology (Apple, Google, Rimm) and defense stocks.

Rising oil, food, and gas is good for credit card companies, too. Everyone wins when there is more inflation and debt. Companies report more revenue, real wages go down, GDP rises, and stocks go up, which is good for wallstreet and working Americans. Rising unemployment coupled with inflation is also good for the economy because it indicates a labor shift from low tech jobs to high tech ones. Google for example increased its total employee count from 5,000 in 2004 to over 15,000. Facebook, which didn’t exist five years ago, now employs 500 people. Twitter, another web 2.0 start up, has a rayroll of 150 computer scientists. This is real job growth that you won’t hear about from the boo hoo hoo, anti-free trade, anti-outsourcing, Obama liberals who are preoccupied with factory closings.

Also consider that the US government took in $2,518,680,000,000 from 168,808,955 tax returns in 2006 source.
$700 billion dollars is less than thirty percent of yearly taxpayer income. Furthermore, $700 billion is just seven percent of the total national deficit. One of the reasons that the US can incur so much debt is because the US government brings in so much income from taxes. And the resulting gains in the stock market make it all the worthwhile. The DJIA surged from a low of 10,600 last Thursday to a high of around 11,400 in just two days on news of these bailouts and SEC restrictions on shorting. Imagine how more the market will rally when the $700 billion bailout is approved by congress. So in actuality $700 billion seems petty when you put it in perspective, especially when you consider the economic growth that would stem from this bailout. This is why we need to give Paulson our heartfelt support and get this bailout approved as soon as possible.

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One Response to “The $700 Billion Bailout is Good for the Economy”

Comment from jeff
Time March 25, 2009 at 11:36 am

obama was good to the economy and stockmarket…

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