Valentine's Day

So I just had to take two seconds to brag about my adorable husband. As you know, Saturday was Valentine's day and I am such a sucker for holidays so I am big in to celebrating everything. And I had been anticipating this day for a while because Chase had decided to make dinner for me. He made me a three course meal complete with two cocktails (virgin, of course). He made homemade tomato soup, spinach salad and shrimp pasta which you can see is really healthy food. I attempted at making a red velvet cake for dessert but it actually turned out hot pink and I didn't cook it long enough so it was gross. We figured it was good not to have all the extra calories. Now my favorites surprise was that Chase bought me a dozen red roses and had them delivered to the house. He told me earlier in the week that he wasn't getting me flowers so I was really happy. It was just a wonderfully romantic evening at home and I loved every minute of it! How'd I get so lucky to have such a cute husband?

Is the stimulus a good thing?

WARNING: This post is political in nature, if you don't care, don't read it.

So the House just passed the economic stimulus bill. The 787 billion billion dollar bill passed 246-183. It was surprising. Of course all but 1 democrat voted in favor of it, and no republican voted for it. But it should have failed. We just spent the last 8 years under a republican administration that did nothing but expand government spending, and now, the first thing President Obama does (not counting signing the Lilly Ledbetter Act) is pass more spending after spending 700 billion to try and save banks. The House of Representatives stuck it to the American people for at least 3 generations.

I'm torn about the package because I believe that something is needed for the economy. I believe that increasing government spending in times of recession will help pull the economy out of it. But my problem is that only 11% of the money will be spent in 2009. and 53% won't get spent until 2011. Most financial gurus are saying we will be out of the recession by 2011.

I also have a hard time with the package because Obama says it is free of pork. Yeah right. One example of pork is 30 million dollars going to a California conservancy group who are working to save an endangered species of rodent in San Fransisco (that has Pelosi's hands all over it don't you think?) Now tell me, how does saving a rodent create jobs?

The third problem that I have is that there is not a consensus among economists on whether or not this will work. I'm not expecting 100% agreement, but I won't hope their would more of a consensus among experts before the government spends money it has to print. Also, who says the money will actually get out of the federal bureaucracy.

The final problem that I have with the bill is that it does nothing to change expectations. One of the first things I learned in econ 110 is that people's expectations determine economic outcomes. If the people expect things to change, they will change. Most Americans don't want this bill! The 700 billion given to Wall Street didn't work. Why would we believe this 700 billion will work?

Another sign of problems with the bill is that over 100 employers of Caterpillar who were laid off last month contacted their congressman and urged him to vote no. This was after the President said that this stimulus package would give Caterpillar the money to rehire some of those laid off. Ouch.

I think that a better stimulus bill is one that spends more than 11% this year (that's about 85 billion of 787 that will first be spent). It also needs to be one that cuts out pet projects and focuses on infrastructure.

The bill will pass the Senate tonight. It will be tough since reports say that Sen. Kennedy will not be present. So even if all democrats and the 3 republicans vote in favor that only gives exactly 60 votes. Granted 60 is all that is needed to pass it. It won't be a landslide victory.

I hope this stimulus works. But I think our government made a mistake.