Sunday, February 15, 2009
I support the stimulus legislation. First, I don't see any positive action in the private sector. Individual businesses may be acting, but as a group they are just sitting around waiting for someone to take the risk. I'm very much aware of the concern about future taxes, high cost and billions of dollars being spent on non-stimulus programs. I'm also aware of the standard griping about big government, liberalism and destroying the fiber of America. I've heard that song and dance all my life.
My wife and I are not large investors compared to many of our friends and acquaintances, but what we have, we darn sure earned, and the recent loss in value dramatically alters our retirement plans. If our investments increased from their current value by 10 percent, we could cover any reasonable stimulus cost. An increase in value more than 10 percent will be a return on our stimulus investment. Granted it may not work as I think it will, but capitalism is risktaking. If I don't take the risk and the market drops, say from 8,000 to 7,000, I'll lose more money than it will cost me to take the chance. I'm willing to spend money in order to make money. I would rather make a little than lose a lot.
Granted there are billions of dollars being spent on non-stimulus projects. The majority of those projects are areas the government is expected to improve or maintain. We cannot get infrastructure improvements done at a lower cost than right now. The number of contract bidders is high and the competition keen. They will do the work with a lower markup now than when times are good and bidders are few. Now is the time to invest because we will get the best deal. To me, that is simply good business.
To my good friends who will read this letter and will suddenly have a problem with high blood pressure, I offer my usual plea: my God-given right to be wrong.