Stimulating the Red Dragon
Posted by BrianAs politicians fall all over themselves to lay out the most massive economic stimulus package one of the most broadly proposed solutions, simply giving money to people, is probably the worst from a practical perspective even if it is politically popular. President Bush, sounding more like George McGovern than an actual conservative, wants to give away money. At least Bush wants to do so through tax rebates for people who actually pay taxes. The Democrats are upset with him for not simply GIVING money to people who pay no taxes - an unabashed, unapologetic call for income redistribution. The Democrats are so eager to hand out money like candy on Halloween that they are prepared to waive their much ballyhooed pay-go rules.
The true irony of any such monetary disbursement is that many, if not most, of the people who receive the money will probably spend it on products made in China. Just whose economy are we trying to stimulate?
FWIW, if I eventually receive a rebate check from the government I will promptly deposit it in the bank just to undermine the intent of the hand out.
Fortunately for conservatives, packages that stimulate are banned in Alabama.
Related:
- George Bush: The Keynesian “Conservative”
- Good column about Bush’s flaccid stimulus package and the overall stimulus orgy from the Cato Institute.
January 24th, 2008 at 4:56 pm
From CNN:
The rebates would go to 117 million families, according to a Democratic summary. That includes $28 billion in checks to 35 million working families who wouldn’t have been helped by Bush’s original proposal, the analysis estimated.
Republicans, for their part, were pleased that the bulk of the rebates — more than 70 percent, according to an analysis by Congress’ Joint Tax Committee — would go to individuals who pay taxes”
What a novel concept: a rebate being actually for people who paid something to begin with