Dead cat stimulus plan

A 'dead cat bounce' is a rather unpleasant term used to describe a small, short-term recovery in a falling stock's price. Why? Well, if a cat was dropped from the top of a tall building, it would bounce when it hit the ground -- but it wouldn't bounce much, and it would still be dead. Source - Financial-Guide.net

President Obama may be overdoing the conciliation thing if that is driving him and his economic team to include $300 billion in tax cuts as a major component of his stimulus plan. Congress and President Bush were wrong and stupid to send us $1,000 checks last year when the stakes were not nearly as high as they are today. Those checks stimulated nothing, and a tax break of $300 billion now would be a waste of money at best, and a further step down the ladder toward Depression at worst.
Here is how tax relief checks will be spent. Those having trouble

It is unpatriotic not to spend a tax break check, but what are strapped people supposed to do?

making their monthly house payments will use it for that purpose. Those who have enough in the bank to cover their house costs will shove it into their kids' college education funds. Those who feel threatened by the real possibility of job loss will take about a minute before they drive it over to their local FDIC-insured bank and deposit it as a security blanket. The remaining 25 people in America might spend it at Nordstrom...or buy gold bars.
We Americans had our chance to save, and we blew it through profligate spending, especially on homes many of us could not afford. Now, however, it is almost unpatriotic to save, assuming you have enough discretionary money for that purpose. The best way to stimulate the economy, almost all economists agree, is to spend, spend, spend, not save, save, save.
Okay, if they really insist on giving us the tax break because it will

Give us all a government money card instead of a tax break check. When we reach our limit on the card, we're done.

make Republicans feel better and the President can keep his promise, then give us all a government money card, good at retailers, food stores, the local donut shop, resorts...virtually anywhere it can be spent to keep people employed, except maybe at gas stations (don't want to encourage more money going to those terrorists). We pay for stuff with the government charge card, and the bill goes directly to the Feds. When we reach our limit on the card, we're done. It will be fun along the way, and it will guarantee to stimulate the economy by a multiple of $300 billion, much better than a multiple of the measly few billion if we leave it up to a strapped citizenry. We ought to have the technology to do this, and do it fast.
I did not vote for President Obama because he promised to give all but the wealthy a tax cut. I voted for him, and donated to his campaign, because I thought he was "that one" who is smart enough and tough enough to do whatever it takes to turn this dead cat economy around, even at the cost of a little political capital.

< Prev		Next >

Saturday, 24 January 2009 05:48

Last Updated on Saturday, 24 January 2009 05:57

Add comment

JComments

Login Form

Add comment