Dear Mr. Mitchell,
The purpose of this note is to encourage you to vote against the "stimulus" bill.
To put it most simply, we have engaged in vast amounts of deficit spending over the last 8 years. It did not prevent a recession. More of the same will obviously not cure one.
As is well known, this manner of economic stimulation did not work in the 30's, 60's or 70's. Even Keynes said himself after the FDR effort in the 30's that massive government spending is not an effective way to stimulate an economy in severe downturn.
This bill has turned into a massive pork barrel and it will do no good to the reputations of any of you who vote for it.
We often make mistakes when we are in a hurry. This is no time for mistakes. A yes vote will mortgage the futures of our children to extent not previously seen.
As has been pointed out in the "disappeared" CBO report and is confirmed as less severe in the current one, a great deal of the spending called for will not be immediate.
I urge you to caution your colleagues that they are embarking on a catastrophic course from which recovery will be difficult.
The most likely solution to the current problem is to let the markets do their work. It is government interference in the mortgage markets that produced the problem we are dealing with in the first place. More government interference will only delay the market correction that is essential to the business cycle and recovery.
If we want to help those with mortgages they can't afford, let's do it. If we want to help the unemployed, let's support them. We don't have to spend a trillion dollars to do it.
Good long-term jobs come from the private sector, not government construction programs. Stimulate the housing industry with buyer tax credits. Support business friendly policies and tax cuts. They work.