Thursday

Economic Stimulus Policy

My formal education doesn’t extend beyond my Bachelor’s Degree, but I’d like to think that I’m a pretty sharp dude. I say that because I often fail to understand why politicians make certain decisions. Take the Economic Stimulus Package that has been carted around to American’s as of late. I don’t know about you, but most of the ideas that are being tossed around are garbage in my opinion. More directly, tax cuts are a sorry way to spark the economy. I'm sure they know this, so why do they always look to give tax cuts and lower interest rates? They are throwing the $600 - $1200 rebate check around like it is actually a big deal. And who cares about the interest rate being dropped when the average American can’t borrow $20K unsecured.

I'm sure the politicians will say they are trying to find a way to effect the largest amount of people. Well, here’s an idea and consider it "one on the house" -- lower the price of gas about $1.50 nationwide, and watch the economy soar once again. If they are worried about inflation, which will be their next excuse, slowly bring it down like they slowly shot it up.

Don’t give me all that garbage about the markets governing the price of gas either. We all know the fix is in. So fix the problem already – get your hands out of our pockets. Ever since Bush got into office back in 2000 gas has been going up and up, and that is in large part due to him and his cronies being in bed with the Saudi's. Meanwhile, the oil companies, who both Bush and Dick Cheney (you don't hear his name at all anymore - he's quietly doing his dirt) have interests in, are constantly getting paid. Please believe the Republicans have been tucking away the cash these last eight years. Kinda puts you to mind of a twisted version of the Biblical Joseph putting away supplies for the hard time Egypt was due to face. Once again, everybody will be hurting but the rich boys.

So back to my discourse. As far as the price of oil goes, they can treat it like a tax abatement by keeping the cost of crude suppressed for the next couple of years. While everyone does not have a car, cutting the cost of crude affects all of us. It will bring grocery prices down. When I last checked a gallon of milk had risen a $1 in the last year. Eggs are as high as I've ever seen them, and other items have found there way up little by little. I’m talking staple foods that families use. Lowering the cost of fuel will allow the trucking industry to lower their prices which will ultimately lower the cost people pay for food. Bringing down fuel cost will also help with the cost of electricity and heating fuel. You know that hits everyone. Not to mention, fuel costs impact all sorts of businesses, especially those that depend on vehicles. If fuel costs come down, small business owners can afford to bring their prices back in line and thereby attract customers again and that would be just the beginning. The dollars recaptured from this move could also give Americans a shot at getting out of debt. I’m sure there are other areas that make this a win as well, but you get my point. So instead of trying to push that rebate check on us, which we’ll have to declare on our taxes next year, why don’t these politicians do something that really impacts Americans and stop all the political posturing.

What other things can you think of that make more sense than giving folks a check that will be gone in a week or less? If you had to put together an economic stimulus package, what would be in it?

6 comments:

Ticia said...

I need to think abt that more.
But I do agree with you.. a $600 check don't fix what is going on!

We have too many homeless people, hungry children... Just a lot of things wrong.

I think that Big Business needs restructuring...
We need to reverse the effects of outsourcing.

Have an economic plan in place that fixes the mortgage crisis.....

I will be back with more!

CapCity said...

I won't be MAD if i get a check;-). But er, ummm, until Black Folk get reparations ain't too much politicians can say to make my ears perk up. I'm the political pessimist.

And as much as folks argue that reparations can't be done cuz it's too hard to know who was affected - that's BULLSHYT! If U are BLACK at ALL(of AFRICAN Descent [whether u like it or not!;-)]) we should NOT have to pay taxes AT ALL(how hard is it to give out tax exempt cards that we scan EVERYwhere we go & when April 15th rolls around send in a copy your birth certificate;-)?)! That's the LEAST this rotten Azz gov't can do! But, I don't think I answered your question. LOL!

Torrance Stephens bka All-Mi-T said...

Yep u sarp and u aint never lied. Every no bid contrac that went seems like Dick Cheney got some of that loot. Like i wrote before, I dont se what it is supposed to accomplish, seems like one is passed each electio cycle

Tony Stringfield said...

If I had a economic stimulus package, my check would be included, yours too Bruh, I ain't lying, I'd try to break these crackers for every dime. Kick down like a Las Vegas slot machine. Reparations baby. The bible teaches, one may steal to feed his hunger, but when he is caught, he is to pay seven times that which he has taken. I don't know about you, but my forty acres done grew at least 400 %, so I'd get my loot! Point blank!!!!!

MsPuddin said...

I don�t have a plan, but I think that there are bigger problems going on in our country that if we started at the root, working with the people, things might shift. For example, the gap between rich and poor, job loss, poverty, health care system, etc. I agree at check is going to be gone quick fast and in a hurry.

jali said...

I'll preface my comments by saying, I'm not an economist - I never even took a class.

I think a national tax free shopping day or two would stimulate the economy. The lines are long when certain municipalities offer their tax free periods.

Bonds (similar to WW2 war bonds)offering a premium return would make sense to me too.

The rebate checks will (in some cases) go directly to the underground economy. Really dumb idea.