STIMULATING WHO?

01/18/08

Deficit spending is by definition a fiscal stimulus, then we are already stimulating the economy beyond any rational limit. And as the consumers get their checks to spend, the money will go to China for goods and to the Arabs for oil, we are already doing that. So why not think of new paradigm, like creating manufacturing jobs in this country, or just send the checks to the Chinese directly and save the postage.

Update, 4 Feb 2008

The president has proposed a budget of three point one trillion dollars, that is three thousand one hundred billion dollars. What difference will another one hundred fifty billion dollars will make when the projected deficit is about four hundred billion dollars,(add in the social security off set and the cost of two wars and the deficit becomes seven hundred billion dollars, but who is counting), can we say twenty three percent? If anyone does need help it is the people on social security who are on the bottom rung of the income scale and have been hurt by the rise in Medicare co pays and rising drug costs, not to mention the inflation in food and energy costs, these are not the ones flipping houses or buying computers and Hummers, they need help to pay electric bills and to put food on the table, for the rest of us new jobs in producing goods is the only kind of stimulus that we need. the kind of jobs I mentioned previously, a tax cut for REOPENING and OPENING factories in furniture manufacture, carpets, clothing and small machines is needed. A CUT IN PAYROLL TAXES AND PROPERTY TAXES IN SUCH MANUFACTURING will go a long way towards stimulating the economy in the long term, and will return the monies spent back to the government thus reducing the deficit not increasing it. We (the president and the congress) keep deluding ourselves and the public that six hundred dollars a person will do any thing but to buy time till after the election at which time the money will be in China and we will be left holding the bag.