The federal government “borrowed” $900 billion from the future (from our children and grandchildren) in December and then an additional $1.9 trillion in March.  The December “stimulus” legislation was passed to provide a $600 payment (to most citizens), and the March legislation was passed to fund an additional $1,400 payment.

So, here is the first piece of simple math regarding the March legislation – – $1.9 trillion divided by 330 million citizens is $5,757 per citizen.  On what planet does borrowing $5,757 in order to receive a $1,400 check make sense?  Why would any person willingly funnel $5,757 through the hands of the federal government?  (More on that later).  And what happened to the rest of the $5,757?

OK – The next piece of math is a simple sum of the components of the legislation that was passed – – $410 billion for stimulus checks, $360 billion for government, $246 billion for extended unemployment benefits, $176 billion for education, $143 billion for expanded tax credits, $123 billion for COVID-19 response, $105 billion for other healthcare costs, and $325 billion for “all other” (none of which related to the pandemic).      

$410 billion divided by $1,400 equals approximately 164 million (not 330 million).  Simply put – – the Socialists have successfully implemented one more step in their game plan to eliminate “income inequality”.  Unfortunately, they have accomplished that feat by stealing that money from future generations.  And why is this “favoritism” not considered to be a direct violation of the general welfare clause that talks about the country as a whole, and not just sub-segments of the “winners” (citizens below the stimulus checks’ income threshold) versus the “losers” (the kids and grandkids)?

The $360 billion to government is also a wealth transfer.  In this case, it’s from future generations to the politicians in power today.  Most of this money will be going to bail out Blue states that have mis-managed their state’s finances. 

$246 billion will be spent so that some people may continue to choose to remain unemployed, because it is more profitable than finding employment.  And with continued government-mandated restrictions on certain segments of the economy (restaurants, etc.) unemployment will continue to be higher than it should be. 

$176 billion will supposedly be spent on educating our children, many of whom continue to be prevented from actually attending classes in their school.  A lot of the money that has already been appropriated for education in previous “stimulus” bills has not even been spent yet, and we do not know where or how this latest “payoff” will be spent.

$143 billion for expanded tax credits is simply another way for politicians to buy some more votes.

If you add the $123 billion and the $105 billion, the math shows that only about 12% of the total cost of the March legislation is actually being spent on the pandemic.

US Debt Clock math – – $84,700 as of March 1st, plus $5,757, equals $90,457 for every man, woman, child and retiree in the country.  One last piece of simple math – – the March legislation was passed with zero Republican votes in either the House or the Senate.  The Socialists in Washington DC are simply buying some more votes today at the expense of our country’s future.  More on that next month.

E-Newsletter No. 87                         March 2021          

Last month, we discussed the reasons why Socialism is immoral and is akin to slavery due to the government’s confiscation of an individual’s output, coupled with the individual’s loss of liberties and freedom.  Socialism has a long history of failure wherever and whenever it has been attempted.  So, what are some of the principles we should follow in order to avoid that fate?  The following thoughts are from Lawrence Reed, who is the president of the Foundation for Economic Education.  (More education is always a good thing).  We agree with the principles he lists.  It should be noted that we have taken some liberties in adding our own thoughts to the discussion about these principles.

Free people are not equal, and equal people are not free.  This is a truism that is rejected by the Left.  The Left’s dogma is that in a utopian Socialist society, the government needs to ensure that there is an equality of outcomes.  They do not accept the reality that in a free market, where people are free to pursue their own dreams and passions, some people will earn vastly different levels of income.  The Left does not accept the fact that some people have more valuable talents, and if they do, then other people are entitled to their “fair share” of what that individual produces. 

What belongs to you, you tend to take care of; what belongs to no one or everyone tends to fall into disrepair.  We agree – this principle was discussed last month.

We need to consider long-term effects and all people, not just short-run effects and a few people.  The “general welfare clause” pertains to the country as a whole and all of our country’s citizens.  The US Constitution also talks about securing the blessings of Liberty for our posterity.  Another concept that our Editorial Board supports is “Favoritism to None.”  When the Left divides us (in order to dole out certain types of favors to some sub-segment of the population) it creates problems.

Mr. Reed goes on to say that our government officials need to be thorough in their thinking.  If a thief goes from bank to bank, stealing all the cash he can get his hands on, and then goes to the mall and spends it all, some people (i.e., the government and the store owners) might say that he has stimulated the economy.  However, the vast majority of us would still conclude that the thief’s actions were immoral.  Is it moral for the federal government to “borrow” (steal) an additional $1.9 trillion from the future, after having just done the same thing in December for $900 billion?

If you encourage something, you get more of it; if you discourage something, you get less of it.  Encouraging dependency is not a good thing.

Nobody spends somebody else’s money as carefully as he spends his own.  Socialists and the Left have no qualms about spending someone else’s money, especially when it can buy some votes.

Government has nothing to give anybody except what it first takes from somebody, and a government that is big enough to give you everything you want is big enough to take away everything you’ve got.  (This quote is oftentimes mis-attributed to Thomas Jefferson – but that’s OK – we agree with whoever said it first).  Another twist on this quote is “There is no such thing as government-funded – it’s all taxpayer-funded.”  Circling back to the first principle listed above, a free and independent people do not look to government for their sustenance.  They should look to government only as a protector of their Liberties.

Liberty makes all the difference in the world.  Liberty isn’t just a luxury or a nice idea – it’s what makes everything else happen.  Liberty is one of the most important elements of the American Trinity (stamped onto every coin) along with E Pluribus Unum (under constant attack by the Left) and In God We Trust (under constant attack by the radical Left).  Our country’s citizens need to recognize and acknowledge that all three elements of the American Trinity are under constant attack by the Socialists and other advocates of Big (and Bigger) Government.

US Debt Clock – – February 1st – $84,150 per citizen / March 1st – $84,700