On...Rebate Checks

Give Politicians and Bureaucrats 5 plans and watch them pick the worst one.

Continuing on the thought of the Stimulus Boondoggle just think of the lunacy of the rebate checks (Both Bush's and Obama's). This is the worst possible way to get money back into the hands of the American people yet this is the delivery system they pick. First they send a letter telling you you're going to be receiving a rebate check. (Taxpayer $ spent) Then they take months to send all those checks out (Think about time, cost, and bureaucracy needed for such nonsense). Then studies show that the majority of the people simply saved it or paid off existing debt, they didn't buy anything new. So the whole point of a big push to the economy didn't happen. AND THEY WANT TO DO IT AGAIN! And roughly the same size! Why aren't more people outraged?! The overused word of the Obamanation already is Smart: Smart Committee this and Smart energy that and Smart Biden over there. Is this Smart anything? No, this is good old fashion American idiocy.

Just cut everyone's payroll tax (or something like it) for one paycheck. You can switch a few digits in a few computers and everyone's next paycheck will be bigger. (Or so it would seem, granted probably a little more complicated, but still) People will be more apt to spend more money in a paycheck than a separate check they can just plug into their savings. They'll go to the movies or out to dinner or buy a new shirt or anything else. It will be more like found money or a Christmas bonus.

Or as someone (can't remember) suggested give everyone a time-expiring VISA-esque card that they must spend or it goes back to the government bureaucracy. Though the logistics and bugs of this project are probably going to be quite messy the first time around and the cost will be higher, it is waaay better than stupid rebate checks of $500 bucks.

On...Just a Mess

Wasted Opportunity

This is why people (regardless of party) don't trust politicians. They take a task and screw it up and waste taxpayer money and in the process rarely solve the problem. David "King of the Centrists" Brooks has a really good article about why this "Stimulus" package is stupid and not even what smart Dems wanted to do in the first place. Though I believe it would be the wrong move I'd rather see a real Keynesian "prime the pump" package just so we could know for once and fore all if this theory has any legs. But no, its a huge hodge-podge of ick. Some change.

David Brooks in the NYTimes

On...Congress and the Stimuli

Stimulate This!

Why does this stimulus package seem more like political graft and patronage than really pumping lots of money into the economy ala Keynes? Taxpayers (present and future) and their money seem to be going to a huge buffet of pork, especially to grease local and state governments and it is all being disguised as an injection to prime the pump of the recession sliding economy. As you break down the bill (and its guises) there is simply too many pet projects and huge chunks of money allocated waaaaay down the road. And there are no guarantees it will do any thing. The whole business cycle could very well fluctuate back into the black with or without this, but the money would be spent anyway. This is just ridiculous--paper money and politicians. But the mob wants anything to be done. Welcome to the junction of Bear Market and Mobocracy.

Newsweek has a very nice summary of the three-headed economic beast we are encountering and why the stimulus is only an arrow aimed at one head.

George Melloan at The Wall Street Journal reminds everyone of the "Leaky Bucket" theory and why the stimulus seems to be just that.

And since Keynes is tossed about randomly right now you can read a long piece from the New Republic on Obama and Keynes HERE (if you wanna here from one voice from the Left)