Sunday, August 29, 2010

To Stimulate Or Not To Stimulate. Any Questions?

Here's where we stand. Conservatives are demanding that the country wean itself off of government stimulus plans. They only raise the debt and cause a decrease in the businesses it's designed to help as soon as they run out. And of course they have to run out. The economy and our country cannot sustain permanent stimulus. Liberals see the need for additional stimulus. They point to the fact that it saved our economy and financial systems at a point where they were about to tank out. A further infusion of help is called for. In other words, some say yes and some say no, and I agree. Here's the thing; our economy is getting ready to drop again. Now I don't hold with handing out money to Wall Street and banks again. They showed a complete disdain for the public they're actually supposed to be serving. On the other hand, help for the auto industry, which was sorely reviled, seems to have worked out OK. The car manufacturers actually did some rehiring. So what's the answer? Well, as the worlds smartest economist, or the dumbest dummy in the world, I think we need to have another round of stimulus. This time we should exclusively target two areas. Unemployment and consumer goods. Durable goods. The home buyers and auto incentives helped with demand in those two areas and gave a boost to the economy and employed more people. So, what if we broadened it to include more durable goods. Appliances and home improvement item and other like products would help to increase demand which would create the need for workers. And by the way, this, NOT tax breaks for the wealthy, will create jobs. How can we afford such stimulus? Savings has increased in this country more than any time in recent memory. That's the only reason we can afford to do it. And I sincerely believe that without it, we'll never get out from under the mountain of debt we face. Putting money in the pockets of rich people only helps rich people. They're not likely to share the wealth.

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