Thursday, March 19, 2009

Un-Stimulate me, Please

Governor Sarah Palin (R-AK) announced her rejection of 45% of Alaska's portion of the stimulus package. In the short run, this bold move would reject $415 million aimed in multiple areas of life, such as $170 million for education, and several million focused on energy. With this in mind, she claimed that she does not want strings attached to her funds, and expand government, only to have deplete and have programs that become liabilities after the expiration of support. This is a valid objection, but it is a decision that could draw the treatment of economic policy along party lines. If this action holds, and is followed by other governors, much of the stimulus package could go to waste. This would result in an eventual increase in taxes for no apparent reason, causing people to feel less wealthy. End Consequence: a decrease in aggregate demand, leading to... more economic recession. In short: although the stimulus is a highly liberal solution to the economic crisis, opposing it could prove fatal, if not properly researched and planned out. Some conformity of opinion might be necessary for the current recession to be overcome.
-Adam

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