Anyone with even a basic understanding of financing knows that the short term gains will be offset by long term losses. Use the simple example of buying a car. If you pay cash there is no future negative impact to your finances. If, on the other hand, you purchase a car with a loan not only is your future ability to purchase reduced by the cost of the car but also by the interest payments on the loan.

With the bailouts being funded by deficit spending not only do the People have to pay for the bailout but we also have to pay for the interest on the bailout. The cost is going to be huge because the government has never reduced the national debt so the interest payments go in indefinately. Imagine the same situation in buying a car but you only pay the interest on the loan never paying off the principle. You buy a new car this year and only pay the interest. Then in four years you buy another new car and only pay the interest. If you keep doing this eventually your entire income goes to just paying the interest on previous loans and you have nothing left to spend on the necessities. That is basically what the government is doing and they will have to continually raise the taxation to pay for the necessities which is extremely harmful to the economy and reduces private investment required to expand the GDP.

Of interest to some, the US currently spends enough on interest payments on the national debt to actually fund the entire enumerated responsibilities of the US government under the Constitution.

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That's a lie. The CBO said no such thing. I know, because I actually read the report. [/quote]

That's not what the report said.

The word "help" isn't even used in the report.

Here's a link to the actual report for those who seek truth and want to read it for themselves:

http://www.cbo.gov/ftpdocs/96xx/doc9619/Gregg.pdf

Your title is highly misleading. Leave it to the Washington Times to highlight only the potential negatives. First, the negatives are over-stated.



Summary:


The long-term costs are directly associated with the increase to national debt. Remember, Bush and the Republicans turned a record budget surplus into a trillion dollar budget deficit. Seems a bit hypocritical for them to complain.



However, note that long-term benefits offset long-term costs.



In contrast, Bush's trillion dollar war and tax cuts for the wealthy have not provided such long-term offsets to the debt they created.

I personally think the CBO is being a bit conservative on the positive long-term effects of parts of the stimulus. The energy provisions, for instance, will lower our demand for fossil fuels which helps the environment and makes us less dependent on foreign oil. Since economists find it difficult to measure the positive economic effects of these things, it's generally not included in such studies.

Lastly,

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"You have shown what history teaches us - that at defining moments like this one, the change we need doesn't come from Washington. Change comes to Washington."

- President Barack Obama, 8/28/08

"To the average American who’s struggling, we’re in some other stratosphere. We’re the party of Big Business and Big Oil and the rich."

- Sen. Olympia Snowe (R)

Budget surplus inherited by Bush: $236 billion (CBO, 2000)

Budget deficit inherited by Obama: $1,667 billion (CBO projection, 3/2009)

Well, well, well looks like i need to read this entire briefing from the CBO. It doesnt surprise me that some folks have skewed what they actually said in the report. Thanks to those posters that actually posted the correct link and a brief overview on it!

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[/quote]

"CBO, the official scorekeepers for legislation, said the House and Senate bills will help in the short term but result in so much government debt that within a few years they would crowd out private investment, actually leading to a lower Gross Domestic Product over the next 10 years than if the government had done nothing."

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"If the President simply adds a couple of Republican solutions to a trillion dollar health care package that the American people don't support, it isn't bi-partisan. It's political cover," Rep Eric Cantor (R-Va.)

A 1.2 percent to 3.6 percent increase in GDP (relative to the CBO baseline forecast of GDP) for the fourth quarter of 2010, plus 1.3 million to 3.9 more million jobs (than the baseline forecast of total jobs) for the fourth quarter of 2010, are positive economic benefits that will greatly outweigh the negative economic impact of a measly one to three tenths of one percent decrease in the CBO base line estimate of GDP for the fourth quarter of 2019.

Why won't the plan work?

That's funny, I wonder what a search of that office on this forum will reveal about how conservatives feel about it.

My guess is.......you hated them.

Another case of hypocrisy.

CBO’s basic assumption is that, in the long run, each dollar of additional debt crowds out about a third of a dollar’s. CBO has incorporated both more and
less crowding out into its range of estimates of the long-run effects of the Senate legislation. The CBO's estimates of the long run effects of the Senate legislation are:

On the up side: A 1.2 percent to 3.6 percent increase in GDP (relative to the CBO baseline forecast of GDP) for the fourth quarter of 2010, plus 1.3 million to 3.9 more million jobs (than the baseline forecast of total jobs) for the fourth quarter of 2010

On the down side: A one to three tenths of one percent decrease in the CBO base line estimate of GDP for the fourth quarter of 2019.