Oh dear. I fear that our new President has quickly gone astray. Damn. I hate it when that happens. A quick perusal of the economic stimulus bill leads to a sense of impending disaster.
And it's sooooo simple.
What will stimulate the economy is spending. To make people spend, give them vouchers. (Tax credits would work but vouchers are more tangible. ) If the Gov is hell bent on spending 900 billion dollars (gag), let's just voucher the hell out of everybody. Let's see, approximately 120 million households in US, right?
Detroit needs a hand? Send out 120 million vouchers good for $5000 off a new or used car. Maybe ten million get used and whoopie! the auto industry is revived!
Same thing for housing. My voucher is worth $10,000 on the purchase of a home. Go for it! The housing industry now rocks!
Put the money directly into the hands of the people if spending money is what you want. Sure, there will be counterfeit problems and accounting problems and plenty of problems.
But there will also be plenty of spending. Sure cure for economic woes.
This will never work. Too simple.
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