A Trillion Dollars Here, A Trillion Dollars There?

January 15, 2009 4:06PM ET

(bettertrades) - Former Illinois Senator Everett Dirksen famously remarked in 1969: ?A billion here, a billion there, and pretty soon you?re talking about real money.? Dirksen's remarks were of course made in relation to the escalating Defense Budget during the Vietnam War, but his sentiment translates to today apropos current events, and what is shaping up to be a year of spending like we?ve never seen before.

On January 15th, House Democrats unveiled a stimulus spending bill to the tune of $825 billion, containing infrastructure spending, tax credits, and a likely trough full of pork. On Thursday, The Wall Street Journal reported the original bill totaled out at $775 billion. But the chance to spend more money on a stimulus package was too great to miss out on for Democrats.

Republicans, led by House Whip Eric Cantor, are expected to grow a spine and oppose the steep spending bill, in turn proposing a more moderate plan based solely around tax cuts, without the exorbitant fiscal expenditure package.

A component of the Democrats? bill involves $90 billion for infrastructure spending on highways, bridges, and other public works. Additionally, Democrats are seeking $102 billion to focus on unemployment benefits.

Common ground between the Democratic and Republican plans is tax credit provisions for working families. The Obama-led plan calls for protecting a $500 tax credit for individuals and $1,000 for couples.

Most Americans balk at the whimsical nature at which politicians toss around spending proposals. The fear in Washington D.C. is being labeled a do-nothing legislator. Yet a recent Wall Street Journal/NBC poll suggests a 2-to-1 ratio in favor of fiscal spending as opposed to tax cuts. Some economists suggest a mix of governmental spending and tax cuts while a vocal minority believes no stimulus is needed. Put blandly, these economists think no stimulus package will speed up the contracting pains of this business cycle recession.

Consider how effective - or ineffective ? fiscal and monetary policy has been thus far. The first round of stimulus checks was intended to spark consumer spending, but retailers are posting atrocious sales. Fed Chairman Bernanke has lowered interest rates to the bone, but financial institutions aren?t lending. The mantra on Capitol Hill is clearly: If at first you don't succeed, try, try again. And again, no matter the cost.

So get ready for more spending, more pork, and little relief. After all, the bill won?t be left for this Congress. Everett Dirksen would be beyond horrified.