CHESSNOID

There is a great article on Yahoo Techticker with a video I embed here.  Basically, it just talks about how these stimulus packages are not working with the first one under Bush and the second one under Obama.  More than likely, we will get another stimulus package even bigger than the previous ones.  Anyways, Charles Ortel explains why this is not good for capitalism.

Techticker:

After Joe Biden’s “misread” comment last weekend, the Obama Administration sought to quickly dampen discussions of a second stimulus (or third, if you count Bush’s 2007 tax rebates.)

It’s “premature at this point” to talk about a second stimulus package, a White House spokesman told The Wall Street Journal.

But less than 24 hours later, Obama economic adviser Laura Tyson recommended more stimulus at a speech in Singapore, and downplayed concerns about the deficit, Bloomberg reports. “The concern is that the U.S. will have to inflate away its debt. I do not think that is a valid concern,” she said.

With the U.S. already “teetering on $62 trillion of debt,” this is a very dangerous game, says Charles Ortel, managing director of Newport Value Partners, an independent research firm. Still, he believes the Obama administration is “going to try” for more stimulus this year, even if the $787 billion package passed in February was a “hodgepodge of programs nobody really understands.”

In addition to adding to America’s yawning deficit, Ortel opposes more stimulus because he believes the government is the “sector of the economy that needs to be subjected to a scalpel.”

He also worries the Obama administration is waging a “war on capitalism,” but doesn’t give President Bush high marks on that front either.

As to the Keynesian argument the government needs to grow during periods of severe economic distress, Ortel says history suggests otherwise. “It’s not clear stimulus worked” to get America out of the Great Depression in the 1930s, he says, and it’s “abundantly clear Japan’s stimulus didn’t work” to stem its now 20-year economic malaise.

I don’t think most people in America are aware of what Japan did for the last 2 decades and how their economy and stock markets have done, but if you want to know more details about it just google it. They had many stimulus packages building this and that public project. I believe they tried to duplicate the theory of what got America out of the Great Depression, but unfortunately didn’t see the results they were expecting or wanted.

Here is another video I could embed with Ortel basically discussing some economics a few months ago.  The video is called “US Waging a War on Capitalism?” You will have to scroll down a bit to see the video.