Stimulus Packages Don’t Work

I am for getting our economy going, and creating jobs. But not into stimulus packages that don’t create jobs for the the BC residents, and Canadians across our country.

That’s right. Stimulus packages don’t work - they just redistribute income. They take your income and redistribute to someone else.

Stimulus packages do not create jobs. They never have and never will.

This isn’t new News ….. This has been taught in Graduate Level Business courses for nearly 50 years. The study of “stimulus packages” in Graduate Schools across this Country is limited to a study of the “lies” perpetuated by Politicians and the press about how they, “Stimulus Packages”, work.

They Don’t. When you hear “Stimulus Package”, think “Pork Barrel Spending” dressed up for Halloween.

So you doubt this is accurate? You are completely wrong.

Government sponsored stimulus packages have been universally rejected as effective means to stimulate economies.

THIS IS NOT. It is a matter of the same group of Politicians lying to you while they feed their special interest groups off your tax dollars and the Economy and the Country go to hell in a hen basket

You doubt this ……. then read,


Harper government is breaking the bank in a desperate attempt to spend the economy out of recession. His federal budget makes no pretence at being anything but a return to Big Government that has Ottawa stretching its tentacles into every crevice of economic life - from how Canadians lease cars to imposing grace periods on credit-card companies before they can charge interest.



The underlying principle is that if the private sector won’t spend and invest, the government must do it.



The Harper government estimate the $40 billion in stimulus will boost the economy by 1.9 per cent over the next two years. That’s a big if, the plan could still come undone by poor execution, wrong assumptions about people’s ability or willingness to spend, and slow-to-start infrastructure projects.



All of this will be considered perfectly acceptable because it is part of a "fiscal stimulus package". It's good for the economy, people will say.



We're in a recession.



If the federal government doesn't give this cash to car makers, Banks, and Elite Corporations the economy will collapse into a depression.

I have a better suggestion. If the federal government wants to adopt a fiscal stimulus package, it should give the money to taxpayers - through lower taxes.

I fail to see why a cheque written for a Bank, Elite Corporations, and their bakers, creates more of a stimulus than if it were written to me. Indeed, there is ample evidence that it doesn't. It’s called theft.

If Harper is prepared to have a $30 billion deficit to stimulate the economy, then I think a large portion of that should be in the form of tax cuts to ordinary Canadians. It's our money and I fail to see why certain Canadians (car makers, Banks, Elite Corporation who have made billions of profit) should get more of that money than others.

Governments have the power to move money around between citizens and potential recipients have devised every scheme imaginable to justify receiving the largesse. This talk of a "fiscal stimulus package" is just another scheme.



Far example, Harper could do something radical and immediately raise the basic federal personal income tax exemption to $15,000.



Such a basic exemption would cut taxes primarily to lower income Canadians and mean that many would pay no income tax at all. The effect of the tax cut would be immediate since payroll taxes would change on the announcement (anticipated in January) and Canadians would have larger take-home pay packets as early as February. It is estimated that a basic federal personal exemption of $15,000 would cost the federal government about $28 billion.

In a country such as Canada, this is a fair way to have a fiscal stimulus package because no region would get more than another. All Canadians (with income) would see their taxes fall.



This tax cut would end the current corrupting lobbying now starting in Ottawa to receive the federal largesse of this so-called stimulus package.



Cutting income taxes would have some immediate effect on Average Joe's spending, to be sure, but it doesn't 'create jobs' like gov't spending is touted to do. However, as you say, gov't job creating schemes are wide open to abuse...how effective were the Liberal advertising campaigns in Quebec or the 7 billion dollar gun registry to that end?

Only industry really 'creates jobs', and thereby increases the tax base. Tax incentives, should they be truly used for directional purposes, ought to be applied to businesses, and in a specific fashion.

Let's take, for example, the auto industry. I believe there is a manufacturing plant in Montreal making viable electric cars which are virtually unavailable in Canada (except BC, I think)

Rather than 'bail out' the 'big three' (that is, giving them cash to continue to temporarily run failing businesses) tax credits could be given to those companies that turn out zero emission vehicles.



While it is true that the 'big three' will collapse (which looks likely anyway), jobs in the electric car sector (including parts and sales) would skyrocket.



New incentives to new ideas, is where we can make a viable business. Ideally (and with a healthy bit of dreaming) those workers would simply have to 'cross the street' to a different, but related industry that would benefit the whole of Canada. A new concept of building a stronger Canada and creating jobs that will benefit all Canadians.

The fiscal 2009 draft budget unveiled isn’t likely to help Japan recover because the recession will probably accelerate the ongoing decline in tax revenues. While some (politicians) say more spending is what is needed to stimulate the economy, others are suggesting the government should reconstruct its finances and embark on structural reforms to spur growth.


For the American’s they should be mad as hell at being lied to again and again. This is not a stimulus package - It is the largest pork barrel spending package ever to leave the Congress - This Pork Barrel extravaganza will not stimulate the American economy or help American Workers with new jobs. This “Package” will saddle the average American with huge increases in the taxes they owe down the line when the bill comes due.



And a lot of the states are refusing the stimulus package because they realize it’s not going to work if they throw more cash in the wind.