BY: NCViking

Some would define insanity as repeating the same thing over and over expecting a different result. So goes Porkulus Part Deux.

Some have been considering a second stimulus package to jump start a lagging economy after the complete failure of the first one. Conservatives argued in February that spending, political giveaways and slow-to-realize construction projects would not stimulate anything but debt – and they were right. So logically the best course of action is to ignore this advice again and launch yet another stimulus package. What? Luckily, key Democrats put a kibosh on this idea before the public blew a gasket.

Soooooo … since all of the so-called experts in Washington failed so miserably, why not let some putz blogger with only a few courses in college Economics take a crack at it? Can’t hurt. Well, here it goes …

This recession is not unlike others by being a crisis of confidence at its core. What Democrats, most Republicans and the Obama Administration do not realize is that a dramatic weakening of the financial health of the United States government by running up massive debt to pay for huge stimulus packages, pet boondoggles, mass government take overs and entitlements exasperates confidence levels exponentially. One does not need to be an economist to realize that if there is no confidence in the entity backing everything up, we are in for a world of hurt. So what should be done?

Vikinomics.

First, table all major initiatives, cut spending and balance the federal budget by fiscal year 2011. What? In a downturn? Yes. Just announcing a plan to do this would restore confidence in the government, stabilize the dollar, reduce interest rates, stimulate foreign investment, etc. Nothing like a dose of responsibility to boost confidence levels.

Second, cut the capital gains tax to 10%, the same level as China. Hell no! What about already dwindling tax revenues? A slumping economy is the worst drain on tax revenues and broad based tax cuts have proven to stimulate economic activity (this is not to be confused with goofy one time rebate checks). When Clinton cut the capital gains tax rate in the 1990’s we saw growth in tax revenue and the economy. When Bush did it in the 2000’s the same thing. It has been proven to be a low risk move with big benefits.

That’s it.

What? There has to be more! No more. Government needs to then just get out of the way and let capitalism work. Besides, with a couple of wars, illegal immigration and a multitude of corruption, dysfunctional programs and waste, the government has plenty to work on to get its house in order.

I know … I am not an economist or living in reality, blah, blah, blah. But consider this; could my ideas be any less effective than what’s been done so far? Well, I guess there is always apologizing to the world for Americas economic sins.

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