Recovery package? You're kidding right?

I find myself in a strange position. I am generally in agreement with the Republican party in asking "What are the Democrats thinking?"

For those that missed it:

WASHINGTON — House Democrats on Thursday unveiled an $825 billion fiscal recovery package, a combination of spending and tax cuts aimed at putting millions of unemployed Americans back to work. And in a second major advance for President-elect Barack Obama’s economic agenda, the Senate voted later in the day to release the second half of the Treasury’s $700 billion financial bailout fund, sparing the new administration a messy legislative fight. (New York Times)

Now, I will be the first to tell you that the economy in the United States is in pretty rough shape and it is affecting the economies of many other countries around the world, but the United States government is broke. Not only is it broke, it is beyond broke to the tune of an estimated $1.2 trillion. That is a lot of zeros. And the United States is not just broke but it is investing (read bailing out) a number of companies that are also broke and broken. And it is getting worse every day. The latest debacle is the $20 billion support payment that was given to Bank of America to assist with their take over of Merrill Lynch.

At last count, as a tax payer I own a majority share or have loaned money to most of the banks, a couple insurance companies, three auto manufacturers and the list goes on. And now the Democratic party wants to spend another $800 billion on top of the $750 billion that has already been spent? And then there is that war funding. You remember that $600 billion last October? Total investment is so high that most people glaze over a the real costs for the on-going conflict in Iraq and Afghanistan. Yes, there are still troops on the ground there, from a number of nations. And it costs money. Money that a number of these countries are rapidly running out of.

What is worse, local jurisdictions and state level governments are in even worse shape. The Federal government can print more money if it finds itself a little short. States are not so lucky. Both Virginia and Maryland are looking at huge deficits as the local tax bases dry up, both due to plunging house prices and increasing bankruptcies in personal and commercial finances. This starts the cycle of cuts, including personnel cuts, that will only increase the downward spiral of available funds as their own personnel, now out of work, cannot meet their financial responsibilities.

There is no money. The United States cannot spend their way out of this depression. It is going to be deep, it is going to be painful and it is necessary. There are too many inefficiencies in the system and too many liberties have been taken for too long. Prices will have to tumble, significantly, for commodity items, and the greed mentality of the 1980s has finally run its course. The time of quarterly earnings and profit taking are over. It is time for real business reform, where companies actually care about the products they make and sell and the people that work for them. Those companies will come out ahead when the country comes out the other side. The others will cease to exist. As it should be.