Obama’s “stimulus” package that has passed the House with a price tag of $820 billion and is now working it’s way through the Senate with price tag of $900 billion (or more), will likely be the one of the largest single interventionist programs by the government outside of war.
I discuss this in a new article of mine on, “Obama’s Costly Government Experiment.”
If the $825 billion “stimulus” package was a separate country, it would have the 15th largest Gross Domestic Product in the world, right before Australia!
The Census Bureau estimates that in 2007 the median household income in the U.S. was slightly more than $50,000. Just for the sake of argument, if half of the stimulus package actually “created” the 4 million jobs through government spending that Obama talks about this would mean that each of those jobs would have cost $100,000 to bring into existance — or double the median household income in America!
The Congressional Budget Office (CBO) has estimated that the Federal government will be running a budget deficit in the current fiscal year of at least $1.5 trillion, which Uncle Sam will have to fund through borrowing (or money creation).
With around 305 million people in the U.S. this means an additional per capita debt budren on the American citizenry of around $4,900. The IRS says that there are about 140 million income-earning taxpayers in the U.S. This means that their additional per capita debt burden will be around $10,700.
(And, of course, this is ignoring the interest charges on this extra Federal debt for which taxpayers will be expected to cough up the cash.)
The “stimulus” package being weaved together by Obama and the Congress will be a giant, costly — and in reality wasteful and counter-productive — exercise in the absurd idea that government can manage the economy and produce the Keynesian “miracle” of turning “Stones into Bread” (as Ludwig von Mises called it many years ago).