Philip S. Dedig – 3/15/09

This page was last updated on March 15, 2009.

Stimulus package is a necessary step; Philip S. Dedig; Beaver County Times; March 15, 2009.

Mr. Dedig supported the proposed federal gasoline tax holiday, Hillary Clinton for President, complained about “business as usual” (“Business as usual in D.C.,” 6/17/08) in Washington, DC, regarding energy, opposed offshore drilling, said Democrat voters deserve better candidates (“Local Democratic voters merit better,” 8/22/08), supported “bailing out Freddie Mac and Fannie Mae” (“Fed, Treasury had to move”, 9/30/08), told us we had “No choice but to help auto makers,” and told us “College costs must be made affordable.” If it’s a leftist position, Mr. Dedig supports it.

Below is a detailed critique of the letter.

“The $787 billion stimulus package will work because the federal government is the largest procurer of goods and services in the world.”

[RWC] Not exactly. That honor goes to the U.S. private sector, aka you and me.

The porkulus bill is closer to $1.1/$1.2 trillion when you take interest into account.

“When it spends aggressively in the private sector, it will create increased economic activity and grow the economy.

“I am concerned they are not spending enough, especially on infrastructure and green technology. It takes a large inflow of money to move a $14 trillion economy like ours.”

[RWC] Sorry, Mr. Dedig, but history shows people invest, save, and spend their own paychecks more effectively than politicians spending someone else’s paycheck.

“The $700 billion recapitalization of the banks through TARP was necessary because commercial and investment banks are the engines that drive and expand the economy. TARP money has to be paid back to the Treasury Department, and some banks have started to do that.”

[RWC] Yes and no. The banks that didn’t need/want the funds are returning them. The banks that were in danger of failing are asking for more.

“I’m not an advocate of deficit spending because it creates inflationary pressure, but sometimes it is necessary. A recent Harvard study concluded the U.S. economy has a 30 percent chance of falling into a depression, up from 20 percent in December.

[RWC] Translation: “I oppose deficit spending when Republicans are doing it, but it’s OK for Democrats.” This is the same position taken by Times editorials.

“Obstructionist Republican senators and representatives and their leader, Rush Limbaugh, are acting irresponsibly. I know the finger pointing and bashing of the Obama administration will continue. However, we are in unchartered [sic] waters and something has to be done.”

[RWC] Note Mr. Dedig didn’t detail how “Republican senators and representatives and their leader, Rush Limbaugh, are acting irresponsibly.”

I guess Mr. Dedig hasn’t noticed some Democrats (still too few, though) are finally starting to question the spending.

“When two years are over and if the economy is still in shambles, then and only then can Republicans say, ‘We told you so.’”

[RWC] Mr. Dedig probably wrote this letter before President Obama switched from his doom and gloom message to his comment on Thursday stating that things are “not as bad as we think.”