Stimulate Me!

Experts seem relatively unified, if such a thing is possible, on the issue of direct economic stimulus to every taxpayer. They're against it. If all the various monies now being set aside were used, the check for each of us would come to nearly 10 grand, apparently. But the economists don't think it's a good idea.

The problem is that given all the bad news, past and future, most of us, it is feared, would simply do what the big banks have done with their bailouts: tuck them away for a rainier day. They were supposed to take their money and fork it over to people who wanted to borrow it. Ha! they said. We're keeping it warm and dry, except for the cash we're earmarked for bonuses. Smart bankers. They care about the economy. They know that if you give an executive hundreds of millions of dollars they will spend a bunch of it, and that will stimulate everybody.

Us smaller fry, it is thought, would take the $10,000 from Uncle Sam and put it in one of those teetering institutions, rather than putting it back into the economy where it is so desperately needed. As the Wall Street Journal pointed out yesterday, people aren't spending enough, inventories are rising, the system is going stagnant and we're all doomed. Or perhaps that was Sunday. It doesn't matter. The gist is clear. We're all very selfish and if we got a bailout of any kind we wouldn't be responsible citizens and spend it right away.

Well I, for one, would like to assure the government that, should I receive $10,000 as a part of the national recovery effort, I would spend every penny of it. Possible areas of expenditure include:

-- Blind auctions for certain educational and religious institutions

-- New shocks for old Volvo

-- Vacations (domestic)

-- Cost of maintaining elderly cocker spaniel

-- Expenses associated with under-compensated semi-adult children

-- Heat, electricity, gas, etc.

-- Grass-fed beef

-- Eco-friendly wine

This is of course just a cursory list. I'm sure I could generate a whole bunch more if I really thought about it. Just sitting here I'm probably spending money on something I don't even know about. In fact, 10 grand might not do it. Give me 20 and I'll really show 'em something.

How about you. Are you willing to take the pledge? Write your Congressman. Tell him or her that you are committed to spending whatever they give us. If all of us come together in one giant shout, perhaps we'll get the job done to the benefit of us all. Have you seen the price of dinner and movie these days?

Comments

[Mnemanth]

We've all been screaming for this for months. We all know, very well, that putting money in the hands of the People is the best course toward economic recovery.
People want to pay down debt.
People want their luxury and convenience items.
People want to invest.
Give me $10k (a rather low number, by the way, given the figures being bandied about for this "stimulus" package) and, most assuredly, I've got things to spend it on.
The problem is this will put power in the hands of the People. And we all know, too, that isn't going to happen.

[MossyOak]

I've been posting this idea for weeks, writing to the president, writing to my senators... . Not one decisive voice has been raised in favor of a taxpayer bailout, yet it is the only real answer to the problem we all face. Well, it should be at least one arm of the solution, a short term bridge to get us through until Congress gets its circus act together.

What we should be arguing about is how not "if" but "how much?" I imagine if Gallup were to conduct a poll asking the question... Would you be in favor of receiving a tax payer bailout in the amount of $10,000 (or X) I'm sure it will be the first poll ever to get a 100% favorable response, except of course for a few loony anti-everythings. Despite that, it will never happen because it's fair and logical.

[rockingbeat]

I would pay down my credit cards. I'm sick of paying 25% interest on them- I made some bad decisions in college, overextending my credit. Apparently I'm not alone. I would sleep better at night having much of my debt taken care of.

[pammygamherst]

i've already written my senators and rep frank and sen dodd and explained to them what i would do with a stimulus check. there was another article here and the author stated by the time all is said and done, the bank bailout would cost several trillion, about $30,000/person (give or take). i could pay off all my bills (except my mortgage) and still have a good chunk leftover to buy my son a car, take a nice vacation, purchase some furniture, etc.

i don't understand why all economists are against sending each of us a check.

[mnyegele]

I'm a retired school teacher. All my life I have lived on skimpy wages simply so rich people like the folks who subscribe to Fortune magazine could get tax rebates. Even my so-called "merit pay" wasn't didly squat. And a big chunk of change went back into the classroom, because I'd far sooner go without than see my students go without.
Going without defines my life style. I wait until things go on sale. I buy and stock up. I survive until end-of-season clearance sales - Although for real, my teaching responsibilities never left much time for shopping. When I hear that business are going bankrupt, that's music to my ears. I love liquidation sales, - and with luck I might not need to buy anything for 3 years.
So if you think I'll spend $ 10,000 - what planet are you on? I have to survive. That $ 10,000 will go into the bank and it will stay there - Forever as far as I'm concerned. I'm a past master of doing without - and if the Economy doesn't approve of my life style, the Economy has nothing to blame but itself.

[RoloTomassi]

I would take the money and buy gold, bury it and wait for the coming apocalypse.

[joebaggadonuts]

A Chinese person I know recommended that the government issue vouchers which would expire if not spent within some reasonable time frame if we really wanted stimulus. They could purchase only domestic goods.

[obamagirl1968]

Actually, I did read about a similar idea but I am not sure where it came from. It would work (in the form of debit cards with an expiration date) for those who have no or few debts. However, those of us who have a mortgage, car payment and student loans (but no credit cards!!) will take any cash and apply it to our bills to pay down our personal debt. Paying obligations can also stimulate the economy as well as new consumer spending....

[mkg489]

Brings up an interesting point, doesn't it? How to keep the stimulus money in the U.S. economy? If we give out $ XX billion to citizens (check or voucher), and everyone goes out and buy goods imported from China, then we are just passing the money to another economy. Might as well write China a check to pay down some of the debt we already have with them.

Instead, I agree with those who favor a designated use for these funds. Buy here or lose it. Yes it smacks of protectionism, but we need protection right now. At least we can be assured that the money with show up somewhere in the U.S. economy and not Shanghai or Dubai.