Today the House passed a $161 billion economic recovery plan to combat recession through tax rebates for families and fiscal incentives for businesses to invest in new capital. The rebates would range anywhere from $600 to $1,200. Families with children would receive a larger rebate check, where as high income earners will get a considerably smaller cut of the dough.
Who wouldn’t a mind no-strings attached 600 clams?
Certainly, putting money directly into the hands of the people is a quick fix – a theoretical band-aid for the economy — reling entirely on Americans’ need to slake their thirst for consumption. We get money, we spend money and we boost the aggregate income.
But why is Bush pushing for a package based on consumer spending? Why not use the $161 billion in government spending? Invest in domestic enterprises like education and healthcare? Not only would consumption increase, but more jobs would be created to employ future taxpayers.
Unfortunately, these aren’t the long term solutions Bush is looking for. In his last months as President, he doesn’t need real solutions, he just needs something to hold the recession at bay until it’s the next guy’s problem.
In the mean time, for the sake of the economy, don’t save your rebate. Don’t pay off credit cards or loans. Do what we Americans were born to do, what we were trained to do, what we live to do.
Head down to your local Wal-Mart and spend that money like there’s no tomorrow.
Mo’ money, mo’ problems.