STIMULATE WHAT? THAT IS THE QUESTION.

CORRECT STIMULATION MEANS A WISE AND EFFICIENT FUTURE.

At this point the USA is crumbling under inefficient economics; in the last decade, a huge stimulus was applied to the financial and real estate sector. Mac Mansions in suburbia and corruption on Wall Street came out. No high speed trains, no efficient cars, no good education, no good science, no social programs, no diminution of the slow sinking of the middle class, no good health care, no good jobs with added value for the whole country came out. Nothing really worthy came out. What mostly came out was ever more money for the few, ever less for the rest. Ever more power for money, ever less for the rest. Then People revolted, and refused to pay their outrageous mortgages.

The first reaction of the plutocracy was to re-stimulate what had made it so much more of everything: it came out with TARP. The TARP has revealed itself to be: Transferring Assets to Rich People. TARP was all about stimulating the plutocracy. The People stayed stuck in the muck, and the economy went down faster.

So the only question to ask the new incoming stimulus is: what will it attempt to do? What will it stimulate? Will it stimulate the lower parts, those balls of greed on Wall Street, or will it stimulate the real economy one needs to be more efficient, more educated, more healthy, safer and happier tomorrow?

Equations, like statistics, can say whatever. What is sure is that the economic model that reigned in the USA ever since Nixon created HMOs, has failed. That model privatize everything, forgetting that entire sectors of the economy are immune to the profit motive. Since 1996, the USA has been overstimulated, and overstimulated the wrong way. Coke addicts get stimulated too, and it's not good. Stimulating with electric shocks someone who has cardiac arrest is good. But the same shock on someone that is healthy would be deadly.

Looking forward is not about silly equations, but really about what one wants to do with the USA. It is a philosophical problem. Philosophers discerned and named economics. Time to come back to that reality.

Patrice Ayme
Patriceayme.wordpress.com