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El Dorado County rightly turns down federal stimulus money
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It appears that the El Dorado County Supervisors have a few clues when it comes to economic policy. Last week, the Board of Supervisors refused to accept $1.6 million in “stimulus” funds offered by the federal government, claiming that government intervention inflicts serious damage on the economy.
They’re right, of course. Whenever the government attempts to “stimulate” the economy it only takes money from group of people—our children in this case—and gives it to another. This transfer of wealth always creates unintended consequences and never serves as a long-term solution. In fact, the more the government intervenes, the more bleak the economic conditions become as time goes on. Creating money out of thin air, which is how the federal government generates all the free money for Wall Street banks and municipal governments, causes inflation and lays the foundation for economic downturns, like the one we’re experiencing now.
Unfortunately, there are many in El Dorado County that disagree with this analysis. And, naturally, they’re the individuals and businesses who would have been the beneficiaries of the federal stimulus money. Real estate agents, affordable housing advocates, local unions and others urged the county to take the money because it would have been just fantastic for local economy.
It seems, however, that the only justification provided for taking the federal money was that it would be “foolish” not to. None of the proponents of the stimulus seemed the least bit interested in the contrary evidence (discussed above) which illustrates why government intervention is problematic.
The county did the right thing by refusing federal assistance. America is headed for trouble as result of the fiscal recklessness running loose in Washington D.C., and few people are interested in acknowledging this problem and addressing it. For doing both the Board of Supervisors should be applauded.
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