Sometimes the gobbledy gook that is government produces a real zinger. This one comes from the UK, but I’m sure that the same thinking applies in the idiotic (i.e. Democrat) wing of the US government too:
This too is an oddity, since the Treasury’s own long-standing research shows not only how investment can revive activity, but also how government investment actually produces a positive return, which could be used to pay down debt or boost other spending programmes.
The first of these is the Treasury Public Model, which shows a rising ‘multiplier effect’ from government spending, Annex, page 102. It shows that for every £1bn spent by government there is a much larger economic impact: £1.1bn in the first year, rising to £1.4bn in both the second and third years. This is a bigger stimulative impact than cuts to either direct or indirect taxation.
OK – so do you have that? Government spending creates a bigger economy. Government, which can create nothing without destroying something first, which might print money and buy somethings and thus produce an artificial “stimulus” in some economic numbers, is able to grow the economy.
Let’s take this to the logical conclusion. If your economy is $10 trillion then why not spend another $10 trillion and get an economy that is $11 trillion? Isn’t that what the above is saying? How about really growing your economy and spend $20 trillion – would that give you an economy of $12 trillion the next year? Would anyone with any logical thought believe this would be a logical outcome?
And yet, the British Treasury publishes this kind of stupidity and apparently believes it. There are two ways that the government can “get money”. It can tax everybody (or tax the hated “rich”, or Big Oil, or Big Tobacco, or whatever evil is the flavor of the day) to get its $10 bucks. It then applies its massive overhead (administrators and diversity managers and quality control managers and Congresscritters and Congressional aides and flacks and PR people and ….) and then spends $10 bucks in order to grow the economy. If you actually took in the 10 bucks out of the economy in the first place and then gave it to your favored union, did you grow anything? Adding in the overhead you actually destroyed value in the total economy, not added to it.
Of course, since its Government they can just print the $10 bucks. In this case, you might be able to get a widget maker to make some more products and buy some supplies and pay some wages to his workers. And in your measurement of economic activity it might show up as an increase. But now you have to pay back the $10. Plus interest. So in the end, did you grow the economy at all? I supposed you might think so as long as you ignore your debts – or if you never plan to pay them back anyway.
However, its just as silly as spending twice your GDP in order to “grow” your economy by 20% or some other ridiculous number. You end up with debt, inflation, and eventual collapse of your civilization.
Just where America is headed. And Britain, and Greece, and…..
And you should either tell your children to start buying gold and silver, or tell them to go live in China.
Aren’t you just so excited that the Energy Secretary announced spending another $34 million bucks we are borrowing from our great-grandchildren?
Colorado will get more than $34 million in federal stimulus money for energy efficiency and renewable energy projects, U.S. Energy Secretary Steven Chu said Wednesday.Of the total, $9.5 million will be used to expand the Renewable Energy Rebates and Grants Program, Chu said. The other $24.6 million will go to the State Energy Program.
I know that in the context of federal spending $34 million is peanuts, but take a minute to think about it. If you assume the average family in Colorado has an income of $50,000 that would mean that this is the equivalent of taking the entire working wage for a whole year of 680 families (assuming they actually netted $50,000) just to pay for this silly scheme. And what will it buy this wonderful $34 million?
“This funding will allow Colorado to make major investments in energy solutions that will strengthen America’s economy and create jobs at the state and local level,”
Without the political baloney please
Part of the money will be used for rebates that will reimburse homeowners for a portion of the cost of activities such as energy audits or the installation of attic insulation, air sealing, duct sealing, and high-efficiency furnace replacements.
Energy audits, insulation, and furnace replacements. Just how many furnace replacements will this buy? At $5000 per for the highly efficient ones they will subsidize – believe me I know since we were forced to replace our furnace – and assuming they took the entire $34 million and paid for the whole thing that would be 6800 furnaces! That would also assume none of this will go to the bureaucrats and bean counters and porn surfers in the state government. So at max 6800 homes affected in this way – with approximately 2 million total homes in the state. A whopping .34% of Colorado homes could be helped with your tax money!
What is that? People will replace their furnaces without government subsidies? Oh you silly goose. People would sit in the homes and freeze to death without the government coming and telling them that their furnace needed to be replaced.
But it isn’t all being spent on furnaces what about all those energy audits and insulation and duct tape – so that .34% overstates the impact a bit. And don’t forget that there’s much more:
It will also be used for incentives for residents and businesses that use onsite renewable energy technology, particularly home heating systems, and the state will also offer $400 rebates for the purchase and installation of efficient biomass-burning stoves that can make use of the state’s wood-pellet resource.
Biomass burning stoves? There is an EPA restriction on the whole of Denver that pretty much outlaws the burning of anything in order not to offend Mother Gaia, so Denver and its surrounding counties don’t get this lovely benefit. And I think the ecoFreaks consider the cutting of any tree as the equivalent of murder. But I know I want to get in line for my $400 stove subsidy. Well, except for the fact that putting it into my house would mean completely redoing the heating system and putting in a chimney and it would probably end up costing me thousands of dollars to actually get my $400 bucks. So I guess I will pass – as will anybody who actually has a brain and thinks will also do.
And there’s even more:
The money will also be used for programs to help state agencies, including public schools, reduce their energy use and carbon emissions. The state says it will promote greater energy efficiency in new and existing homes with programs such as a “whole house tune up” that bundles efficiency incentives.
Note that first sentence there – state agencies will use it. How they will use it is not specified, but it will be used I’m sure. But somehow you just know that when it comes time to actually account for how this money is used (and we all know that will happen when pigs develop the ability to levitate) all these wonderful audits, and insulation programs, and wood pellet stoves, and furnace replacements will be a drop in the ocean. This money is going to help keep your state government running and interfering in your life.
This isn’t about energy or carbon credits or anything. Its just a transfer of your federal tax dollars to the state government for them to pay people to run around piously proclaiming their green credentials. Aren’t you so glad your taxes are being used in this way? Because children unborn will be paying interest on this useless waste of money.
Hidden somewhere in the news lately is the fact that Iran announced that they had detained 3 people on their border. The Iranians call them CIA spies of course, while the news reports have been about ‘hikers’. Well, it turns out that they are died-in-the-wool kooks from Bezerkley:
Three Americans whose disappearance in Iran has prompted concern from U.S. officials are idealistic UC Berkeley graduates whose interest in Middle Eastern culture and human rights led them abroad to study and do freelance journalism, friends and colleagues said Monday.
Shane Bauer and Joshua Fattal, who are 27, once lived in the same Oakland co-op and taught a student-led class at Berkeley that envisioned a harmonious, postcapitalist society. Sarah Shourd, Bauer’s 30-year-old girlfriend, describes herself on one Web site as a lover of “fresh broccoli, Zapatistas and anyone who can change her mind.
Perhaps its just me, but how stupid can you be to decide to go ‘hiking’ on the Iranian border?
Bauer graduated with honors from UC Berkeley in 2007, earning a bachelor’s degree with a major in peace and conflict studies and a minor in Arabic. He went to Sudan’s Darfur region to research a thesis on the crisis there.
Shourd is described by those who know her as passionate about teaching, traveling and politics. After receiving a bachelor’s degree in English in May 2003, she worked as a tutor with Americorps, a tutoring service in Berkeley and a charter elementary school in Oakland.
Fattal, who earned his bachelor’s degree in environmental economics and policy, is a Pennsylvania native who recently worked and lived at a sustainable living research center in Oregon.
Good luck in that Iranian prison you twits.
In an April 4 Newsweek guest editorial, Secretary of Energy Steven Chu also proved that — his Nobel Prize notwithstanding — common sense and rudimentary knowledge are lacking. First he did not offer one sentence on securing the 87 percent of energy supplies that the US needs other than to discuss “advanced biofuels.”
Not to be outdone in slogan-style exaggeration, Secretary of the Interior Ken Salazar chimed in…Salazar, the Wall Street Journal reported, “raised eyebrows when he said offshore wind farms could replace 3,000 coal-fired plants.” Never mind that the US only has 600 of them. He also claimed that offshore wind in the Atlantic could deliver 1,000 gigawatts of capacity – approximately equal to the entire electric generation capacity of the US…Salazar’s statement should raise a lot more than eyebrows.