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| Feb 02, 2009 12:51 pm |
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re: re: re: re: re: Commonsense Approach To The Economy |
Kathy Buck
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Economic Stimulus Packages for Dummies
In order for a stimulus to work two things must be achieved
1 - generate quick economic recovery
2 - that recovery must lead to sustained economic growth
The idea behind any stimulus package is that increased spending will increase production, Walla - jobs.
Contrary to popular belief... the government spending programs implemented during the Hoover, Roosevelt, Ford, and George W. Bush administrations that intended to generate this kind of economic stimulus did NOT create sustained economic growth or reduce unemployment long-term. And now look at Japan during the 90's.....
So Joe Blow Construction gets a Gov't contract to fix the roads. Stimulus monies allow Joe Blow to hire workers...what happens when the road project complete? Loss of job. So it is not long term...
While I'm all for my wallet gaining some girth, I'd suspect I'd be like most middle class folks --monies will go to the heating bill and not that new flat screen TV I've had my eye on.
Stimulus packages IMO rob from us long term, It's like robbing from Peter to pay Paul. Or worse - like those people with multiple bank accounts that use to write bad checks for cash from one to another to keep from going negative...a very dizzy short term solution that comes back and costs loads in overdraft fees if one is not careful. Stimulus plans can cause inflation.
Will extra tax cuts for businesses work? Wicked circle - more tax breaks could see more employment - but if sales are down whats the point?
...and on a whacked note. I about spit out my chicken wing last night while watching the superbowl. WI economy and state debt in the crapper. Yet the WI lottery running regional ads during the most expensive run time known to mankind. Promotion of their own stimulus package, scratch off and win for extra cash...give me a break. On my agenda today? A letter to Gov Doyle.
Private Reply to Kathy Buck (new win) |
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