Two weeks ago, I was praising Lt. Governor Gary Herbert for his willingness to stand up against the Western Governor Association. Yet, today we find him cow tailing to his friends in the Utah Association of Realtors.
On Tuesday, Herbert announced plans to extend another stimulus package for home buyers. While the details are still vague and we don’t know what the package will include, whatever the package is, it is not the right thing to do.
At best, this looks like Herbert is scratching the backs of his friends. At worst, this is corruption at its worst. Herbert is a past president of the Utah Association of Realtors, so this really starts to smell.
The legislator recently passed a similar bill which was signed by Governor Huntsman. We have yet to see the results of this stimulus, yet our government is already talking about passing more. The only reason I can see for seeking more money for home buyers is the make Realtors happy. My guess is we will see a huge donation by that organization to Herbert’s 2010 campaign.
Is the word stimulus the government word of the day. All politician like to exclaim how they are going to stimulate the economy. Even though it may go against the principles of their party, they think they can save the economy. In my very limited understanding this is a Keynesian approach to economic recovery.
I won’t be so self-important as to act like I understand Keyensian Economics. But my understanding is that one of the principle of this theory is that government infusion of money into a market will help the market. However, as Frank Staheli points out in this excellent piece on Keynesian Economics, most of Keynes’ theories have proven false. Government involvement in the free market leads to failure.
I have been tentative about showing support for Herbert. And I am glad that I did. After his forthrightness at the Western Governors Association meeting, I was thinking that I might become a supporter. However, this one proposal may have pushed me back on to the fence, and maybe on to the other side. I am not going to fight against him just yet, but I will be watching Herbert closely to see exactly what he does.
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