Sunday, February 22, 2009

Stimulus Plan

It seems to be the topic everyone is talking about; the topic that everyone has an opinion on. Over these last couple of weeks, our nation has debated over whether to do a stimulus plan for the economy or not. They’ve debated how much we should do and what should be included. Should it include increased spending or decreased taxation? They’ve debated on the effect of the outcome and the consequences of such a plan. They’ve debated on what has caused this crisis and who’s at fault. They’ve considered who should be helped and who shouldn’t be based on who they think caused this crisis.

It’s tiring listening to the conversations going on; the opinions that are broadcast to the masses. So, here’s my opinion, my two cents. Get to the root of the problem and focus only on that!
Here’s the thing I don’t hear much about. Our economy is much like a see-saw kids play on. There’s a balance to it and if the kids weigh the same you could actually have the see-saw stay level. But what happens when one is heavier? They drop to the ground and would have to give a push off the ground to be able to keep moving. If they get off and just let go as they do, the other end drops to the ground and the child on that end can get seriously hurt.

The same can be said of our economy. An 800 pound guerilla got off the see-saw. Home values dropped dramatically; in Arizona some places have dropped more than 50%, most of that is in debt (aka someone else’s money). I’m not an economist and I may be oversimplifying the situation. In my opinion, when that much money has been pulled out of the economy in a relatively short period of time, people will get hurt and they won’t jump back in very quickly; it will take time to rebalance and trust who’s on the other end of the see-saw. In the mean time, there is substantially less money circulating in the economy causing fewer jobs and lower pay.

There are a few ways to off set that cycle whether it’s families, businesses, or government; currently we’re focusing on the government doing it. The entity that can produce more money (i.e. the government) can either spend their way out (increase government debt putting money into the economy now to be paid back later), increase the money flow (print more money which lowers the value of that currency which leads to inflation) or they can reduce taxes (leave more money in the economy and reduce government spending to match). Keep in mind, there still is a balance and each one has a consequence. And with each one of these, we’re trying to fix our money problems with money.

I personally don’t think our government should be fixing the problem in our economy by spending money or printing money. In doing so, they are simply getting on the see-saw. They shouldn’t be on it but govern the way it’s played on to maintain some sort of balance and fairness and to maintain the core values of the founding fathers of our nation. Had it been governed properly before, I don’t believe they would need to get on now.

But we still haven’t got to the root of the problem that we should be focusing on. You can’t buy your way out of a problem, whether it’s our economy, our relationships with others, marriages, etc. Only submitting to God’s plan will fix the problem. God has given us His Word to solve this crisis.

He tells us in Deuteronomy 8:17-20 -
You may say to yourself, "My power and the strength of my hands have produced this wealth for me." But remember the LORD your God, for it is he who gives you the ability to produce wealth, and so confirms his covenant, which he swore to your forefathers, as it is today. If you ever forget the LORD your God and follow other gods and worship and bow down to them, I testify against you today that you will surely be destroyed. Like the nations the LORD destroyed before you, so you will be destroyed for not obeying the LORD your God.

It is God that gives us the ability to produce wealth when we seek Him. When our nation starts to seek God and His ways, then our nation will be healed and revived; we’ll have new inventions and discoveries develop wealth in our nation that will benefit others first. In the process of discovery and development of new inventions, we’ll increase our national production and cure our financial problems. When we return to our roots and be a nation under God called to be lenders not borrowers, we’ll reduce our personal and national debts and increase our influence in the world.

4 comments:

Billy Coffey said...

An excellent post. I love your analogy of the see-saw. So, so true.

Tamela's Place said...

Very Good! couldn't agree more, but will the American government do that? They haven't yet :( so i don't know if they ever will.

Money seems to always be the answer, maybe if the government as well as the people would stop spending what they don't have things would change.

I live in Az. the housing market here is rediculous. People were buying up homes in 2005 and 2006 and paying huge amounts for them. #1 they weren't worth the amount people were paying and houses were being appraised at rediculously high prices and #2 the banks were giving loans to people who couldn't afford them. GREED! is what it comes down to.

Theres my 2 cents :)

Avily Jerome said...

Great post, Jeff! Thanks for sharing that! And I, too, love the see-saw analogy! Very apt!

Anne Lang Bundy said...

I'm jumping on the bandwagon as a fan of the see-saw, and the image of an 800-lb gorilla getting off, while an even bigger pork animal is getting on.