Monday, March 16, 2009
Nancy Pelosi said she hasn't ruled out a second stimulus. This is just what we don't need right now. First we need to wait six months to see how the last one affects everything. We also don't need more debt pilled on the American taxpayer. While I am against all this stimulus if they are going to do one it needs to be directly given to the American people. The argument that it doesn't work is just not true and here is why. Back when they gave a five hundred for singles , a thousand for couples it was not enough to make a difference to most people. It was like putting a one inch band aid on a twelve inch cut. I thought the guest on Glen Beck made an interesting point that if you could have given every person over 18 and a legal citizen in the U.S. a million dollars instead of the stimulus they passed. I would say he's right except that it would be to inflationary. So what they could have done is give singles 50,000 and couples 100,000. It would have spent 10 percent of what the stimulus cost us. So for those who say it doesn't work lets go over the only choices people have to use the money. First lets take the top 3% who don't need it, they would most likely put in bonds , Cd's, or the stock market. Great it adds liquidity to the banking system and capital for companies. Second take the bottom 10 % , they most likely will pay their bills and spend a lot. Most likely on bigger ticket items such as TVs, cars, furniture etc.. Some will buy houses if they have income to support the payment. Great they are buying goods and cleaning up their debt. Now lets take the rest of us. We would most likely first clean up our debt and boost our savings. Great our position is better for future purchases and banks and credit card lenders get paid back which increases their liquidity and balance sheets. We save thousands in interest which increases our disposable income. We would also do things like home improvement, new vehicles ( great for car makers struggling) ,paying for our kids college etc. Great all helps the economy. If we do any more stimulus it needs to be direct since it is our money they are spending. Tell your representatives that if they are going to support a stimulus it needs to be direct although you know where I stand , no stimulus!!