Stimulus passes Senate test vote, may be approved within the week

The stimulus was put to a test vote on Monday, reaching the necessary 60 votes by getting votes after converting three GOP Senators (both from Maine and Arlen Specter from Pennsylvania). The bill passed the test vote 61 to 36. Harry Reid, Senate majority leader, has said that he will hold Senate in session into President's Day weekend if need be to pass this legislation. I say to GOP Senators, begrudgingly... just let them pass the damn thing already. You're not going to be able to stop it and I suppose it's better for them to give it a try now then to wait a week and then implement it. Yes, I think it will be as big of a blunder as you do (Granted, probably for different reasons). But, there's really nothing you can do about it now except try to shave off a few billions more.

That being said, let me synthesize what I've come to learn over the past few weeks about my views of the economy versus those of people that I talk to who are much more supportive of the plan:

I don't think that the United States' economy at present is a viable economy. We are a debtor nation. 70% of our GDP is consumption. We have had a negative trade balance almost every year since 1971. In 1971, the trade balance was only -$1,303 (in US millions). In 2007, the trade balance was -$700,258 (IN US MILLIONS). Sadly, this year was actually a banner improvement, down from -$750,000 (approx.) in 2006. In almost every year since 1971, this trade balance has decreased as imports rise and exports fall. In Lehman's terms, we buy way more than we sell. Some fields that were once American strongholds: automobile manufacturing, electronics, etc. became fields in which our imports dwarfed our exports. We don't make things anymore. Instead, our economy consists of buying all of the things that the world makes. When America goes down, the rest of the world takes a hit too. Why? Because people aren't buying from them as much anymore.

Why is this a problem? Because, at some point in time, if no change is made, other economies will realize that having a consumer nation to buy all their stuff becomes more of a burden than a benefit. Our creditors begin to learn that the money they give us won't ever be repaid. Why? Because we bought TV's and cars with it. We didn't use it to start new companies or invest in technology with which to further our economic well-being. We get money, we spend money. For the time being, countries are luke warm about lending to use because it means a better market for their goods. But, there will come a time when someone puts a stop to the tab and our economy will really be on its ass.

Many proponents of the Obama stimulus believe that the economy must only be stimulated and the investors must only be encouraged. They believe that with renewed market confidence, the US economy will resume what has become its usual charade. But, I believe otherwise. I believe that this economy requires substantial change in the coming years or we may be looking at something more serious than we can imagine.

I believe that the US economy needs a major overhaul. I believe that these staggeringly negative trade balances must disappear. I believe that we must make our industries competitive again. I believe that we must return to an economy that does more than borrow and spend; it produces.