Posted by
Jonathan Morris on Thursday, January 22, 2009 1:16:20 PM
On January 7, 2009, there was a meeting between Robert Reich, Pres.
Obama's economic adviser, and the Way's and Means Committee. There are
a few things there, but the thing I want to address came from
Representative Charles Rangel in a discussion of providing economic
relief money in order to save and promote local and State economies.
"Governors are going to be forced to find some formula to find out how we can get the money where the hemorrhages are."
I
have two problems with this short statement. First, "governors are
going to be forced..." Really? I don't mind the government saying,
"Hey, we are sending you money for high risk areas. Put something
together so we can make sure it all gets where it is needed." The
problem I have is the transfer of responsibility. Instead of the
"unity" we keep hearing about, the goal is to pass the buck to the
governors. This sets a precedent. If the money doesn't make it, it's
the governors fault. There is no unity, there is a sign off, a transfer
of responsibility. "Here is that box of money, it's all in your hands
now." I don't like constant federal over-watch, but come on. How hard
is it for them to work together to put something together?
That
is actually a small thing, one that I may change my mind on later, but
there is another element that bothers me most and it is an issue of
"common sense." He was talking about pushing money to the
"hemorrhages." Medterms.com defines a hemorrhage as "Bleeding or the
abnormal flow of blood." It comes from two separate Greek words, one
meaning blood and the other "to break free." So Rep. Rangel is saying
that there is a constant economy "leak" in these areas.
There
was a man living in a small European village who was selected to refill
the towns water reservoir after it leaked onto the ground. The man ran
from the stream to the reservoir, filling it one bucket at a time.
Whenever it reached the small crack, though, the water would drain.
When he realized that he was making no progress, he gathered more men,
each with larger buckets than his first. Back and forth they ran,
filling it bucket after bucket. Finally, the water lever kept rising,
even as it was leaking. They filled the reservoir to the top and
finally, were able to rest. While they were idle, the water drained
through that crack. The next morning, the men saw the reservoir empty
again so they began filling it, running from the stream to the
reservoir. They did this everyday, and the reservoir emptied every
night.
Congress' solution of sending money where these economic
hemorrhages are is akin to trying to fill a broken bucket: you may get
it to the top, but it will still drain out. But they are not seeing
this. All they are seeing is the reservoir is filling, ignoring the
fact that there is a reason it is empty every morning. What the
villager should have done was let the reservoir empty, repair the crack
(or replace the reservoir, but that is a different argument) and then
fill it. Likewise, Congress needs to not throw money at these problems
but instead, find where the "crack" in the economy is and work to
repair it. Once the repair is done, we can send money to give it a
kickstart.