RebelCapitalist: Financial Information for the Rest of Us | We Need a Different Type of Stimulus

We Need a Different Type of Stimulus

Nov 06, 2008 | By: Mr_Blue | Tags: economic stimulus, economy, jobs

This past spring most Americans received an economic stimulus check. It cost us, taxpayers, $168 billion and had very little impact and no lasting effect on the economy. Consider the recent economic news: Economy Shrinks as Consumers Cut Back on Spending. What happened to those checks? Did people put into savings or did it go to paying off credit card debt or some other bills? Congress is talking about additional economic stimulus. But our economy needs a different type of stimulus – a jobs stimulus in the form of rebuilding our country’s crumbling infrastructure. We are talking roads, bridges, libraries and schools.

A survey conducted by H&R Block indicated that a majority of people used their stimulus checks to pay bills. If this survey is representative of what the rest of us did with our checks was the $168 billion worth it? I say no.

This type of stimulus via tax rebate is a political ploy. It allows politicians to say they are doing something for the people. But what they are really doing is increasing our national debt and federal budget deficit with nothing to show for it economically.

Who benefits from a tax rebate stimulus? Certainly not us, sure we pay the bills but we don’t have anything to show for it such as a new computer or TV. But what if we did use it to buy something such as a TV or computer? The retail outlet would benefit from our purchase, the foreign electronics manufacturing company would benefit and some foreign country such as China who is purchasing the U.S. government bonds that are used to finance the tax rebate stimulus. There is very little lasting benefit to our economy.

What if the economic stimulus legislation was different, what if it went to investing in our infrastructure such as bridges, roads and buildings? This type of economic stimulus would create jobs. This type of economic stimulus is an investment in our country and in return for the additional national debt incurred with such a stimulus we would at least have something of value to show for it such as new roads or buildings plus more jobs.

If you agree please call or send a message to House Speaker Nancy Pelosi and tell Speaker Pelosi that you want real economic stimulus and don’t waste our tax dollars on some tax rebate stimulus.