The Cody Word
  • December 10, 2008 02:36 PM EST by Cody Willard

    The Government Sucks; Or, Stimulus Is Just Another Word for Pork-Barrel Spending

    Freedom, lord what a funny word,
    We search for it just like some kind of fool,
    Woman leaving home, man sits there all alone,
    Little child is paying all the dues -- The Allman Brothers

    I know most pundits and politicians and the company executives they cater too are all convinced that going into the markets and borrowing hundreds of billions if not trillions of dollars that are then going to be to give huge contracts to huge corporations that have made huge donations to the politicians who are doling out that hundreds of billions of dollars is going to be bullish and good for our economy.

    They're idiots.  They're wrong.   The socialist Republican/Democrat/Obama's Stimulus Package is actually the single largest pork bill ever proposed in this country.

    “It will be a two-year, nationwide effort to jump-start job creation,” Obama said of the plan. “We’ll put people back to work rebuilding our crumbling roads and bridges, modernizing schools that are failing our children, and building wind farms and solar panels.”

    That's a nice thought...but the funding for such things can only come from excess profits in the system.  And in case you guys didn't notice, there are only excess losses in the system right now.

    Keynes went broke because he was an idiot and didn't understand the very broader economic cycles he purportedly conceptualized.  Gimme a break.  Keynesian economics uses force to redistribute the value of savings (profits) to those most connected politically.   That's it.  You can put up all the fancy equations and layer all the trickle down magic on top of the principle that you want.  But the fundamental politicization of any "stimulus/pork" contract is the most fundamental principle of Keynesian economics.  And politicization of contracts doesn't create as much profits as profitization of contracts.

    I hate the use of force to redistribute wealth.  Keynesian economics purports using force to redistribute wealth.  Therefore I hate Keynesian economics.

    "We are not going to simply write a bunch of checks and let them be spent without some very clear criteria as to how this money is going to benefit the overall economy and put people back to work. We're not going to be making decisions on projects simply based on politics and -- and lobbying," Obama said.

    How else does a politician decide anything -- but on politics and lobbying?  By definition, politics are decided by politics.

    It ain't good for our obviously corrupt government to amp up its sucking of money that would otherwise be invested in private, profit-seeking markets.

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Jack

Cody: Nail right on the head

December 10, 2008 at 5:19 pm

JD

Someone correct me if I'm wrong, but I've heard that there is a mass shortage of skilled welders, machinists, etc in this country. Many skilled trades people would be needed for the infrastructure proposal. Does that mean we would end up bringing in skilled workers from other countries? I heard that Canada had to do that when starting their tar sands infrastructure projects. They tried to recruit from the US, but there were no workers with the skills they needed, so they brought people in from Scandinavia.

December 10, 2008 at 5:12 pm

Halifax

The crisis is government's golden opportunity to explore hitherto unplumbed depths of corruption as they dole out these unprecedented amounts of your money. Better hope you're well-connected, so you can be one of the winners over the next few years, rather than one of those who will foot the bill. Bill Bonner, one of the enlightened pundits who predicted our current situation some time ago, made reference yesterday to "the NEXT big bubble – the LAST big bubble of the whole Bubble Epoque – a bubble in public debt." We can only hope it's the last.

December 10, 2008 at 4:38 pm

Rick

Cody, Love your candor and fresh perspective in comparison to the rest of the talking heads! I work out of a home office and have had FBN on the TV daily since that first 300 point drop in October. Your perspective resonates out here in the trenches and I really appreciate you echoing our frustration and anger with the mess in Washington DC. I stumbled onto Happy Hour and really enjoy the way you get fired up about the things we care about. Keep up the good work! Thomas Jefferson had it right when he wrote James Madison in 1787..."I hold it that a little rebellion now and then is a good thing, and as necessary in the political world as storms in the physical...It is a medicine necessary for the sound health of government."

December 10, 2008 at 4:19 pm

A Capitalist

Cody, Right on! The use of force to redistribute wealth...uh, let me see....yeah, that would be stealing.

December 10, 2008 at 3:56 pm

Lloyd Zimmerman

Agree and it is quite evident that nobody read the TARP plan as written by Paulson, if they did, they would not have been surprised when he did what he did. I read it when it was first published on the Foxbusiness website and guess what, there were no controls. Now the Big Three companies are lobbying against terms of the bailout and the $25 Million threshold saying it won’t work! Since when do companies that are going broke get to dictate policy and where are they getting the money to hire lobbyists? GM says they are broke and going to be out of business in a few weeks. Where do they get the audacity to hire lobbyists and dictate policy to Congress and the President? It sounds like politicians are listening to them. Well, if they want to dictate policy, let them figure out another way to borrow money. Unbelievable, simply unbelievable, Don't let GM pull the wool over our eyes. Let them go bankrupt and get rid of the unions or borrow the money with strong controls and on our terms. You know that when they get the money they are going to cut employment like we have not yet seen. Wagoner is an over educated idiot, don't leave him and his yes people in control--he bankrupted the company--he was captain of the ship (why did the President of the company and the board let him sink the ship?). They only have experience in making big mistakes and not listening---they don't know how to run a business, they are a cancer--get rid of the cancer.

December 10, 2008 at 3:18 pm

TomMc

Cody, as long as we have professional Representatives and Senators every bill that comes out of Congress is pork. We need to make the house terms longer and the senate longer and put term limits in place. Since the President is Two four year terms, how about we do the same with the House and Senate. Congress persons won't have to spend the entire term pandering and raising money for re-election and we won't get stuck with old giesers like Byrd, Kennedy, Lautenberg, McCain, Biden, and etc.. There would be true public servants in place not out of touch professional who never held a private sector job.

December 10, 2008 at 3:16 pm

about this blog

  • Cody Willard is an anchor on the FOX Business Network. Willard is also the principal of an investment management company. He was a long-time featured columnist for the Financial Times and TheStreet.com as well as a regular featured economist and stock picker on CNBC's ''Kudlow & Company."

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