Most people in New Smyrna Beach and other areas of Southeast Volusia have caught on to the fact that President Obama’s stimulus program is having no beneficial effect on the economy.
What some people do not know or understand is that a stimulus of this kind can’t possibly work -- ever.
The first necessity in getting an economy to improve is to increase production.
There is nothing in the action of throwing money at people that gets them to produce. It simply induces them to bend over and pick up the money but nothing has occurred that will induce them to work more and produce more.
Some people may be elated if they receive large amounts of money but they will not produce any more than previously since they are not being rewarded for production.
On a more negative note some of the stimulus money may be going to projects of smaller or no economic value while taking resources away from projects of higher economic value. This does nothing but hurt the economy.
Since much of the stimulus money is “being printed“ it causes inflation.
The way to get the economy moving again is to reward production and make the moves that will make production easier. This includes lowering taxes, reducing regulation, promoting sound money, promoting international trade and good legal protection of people’s property rights.
Since there have been no movement on any of these things, the economy will continue to limp along with very small growth and high unemployment. ----------------------------------------------------------------------------------------------------
