Economic Stimulus Plan

*Originally published on 4/29/12


It should be no surprise to hear that the economy hasn't been doing so hot. Back when George W. Bush was in office, the Government issued $700 billion to struggling corporations as a means of keeping them afloat. It kind of worked, I guess, but not as well as one might have hoped.

Enter Barack Obama, who swore that he was going to do us proud. He had a plan to kick-start the economy that would cost $800 billion. Where Bush's plan geared towards big businesses and executives, Obama threw money at all sorts of things with varying results.

I don't get it. I have no idea how you throw that much money around and have so little to show for it. Honestly, they would've been better off just giving me the money.

That's greedy. You'd just spend it all on yourself.

You're overestimating my desire for stuff. Yes, I have a sizable wish list on Amazon and, true, a portion of those funds would go towards clearing that out. However, I couldn't spend $800 billion on myself if I tried. Even if I paid off all bills and cleared out my wish list, in terms of dollars, it wouldn't put a scratch in the grand total.

However, other people have Amazon wish lists too. I could roam the site and buy things for others.

Some will argue that this only serves one big conglomerate. How will this help the little guy? Don't forget, used items can also be purchased. I could easily "spread the wealth" by purchasing items from independent retailers, or even individual people, giving that money to stores that need it more than larger chains.

Speaking of chains, had I been given access to this money, Borders would still be open. There wouldn't be any handouts, but I would drive all over the country, buying books and donating them to local libraries.

This would be a boon to the schools. Not only would they have a plethora of books, but buying them would generate sales tax revenue for each state. That's money that could go towards balancing budgets, hiring more police officers and teachers, or just ensuring that they are taken care of regarding benefits. Jobs would be created in both the public and private sectors, attacking this problem from two fronts.

Of course, books aren't the only things that would be purchased. The same strategy would be applied to several companies, large and small.

Philanthropy

While this may help, it's not enough to save the economy; further measures would be necessary. Thus, I would start getting philanthropic, essentially pulling a Jack Nicholson Joker and giving out large sums of money to people who need it, are struggling to get by, or are starting to fall behind on their bills. It should go without saying, but there would be no giant toxic gas balloons in case anyone wanted to take that reference to its logical conclusion.

But David, we need to serve the needs of the 1%! All hail the 1%!

That's the beauty of this plan. When working class people get large sums of money, the first thing they do is pay off debts; whether it's car loans, credit cards, or mortgage. That would pump money into the struggling bank and auto companies, allowing them to balance their books while also providing some relief to people who were hit hard by this crisis.

Giving out million dollar checks to people would seem ideal, but the lottery has proven that this may not be the best course of action. You want to give people enough to help, but not so much that they get reckless and finish off worse than they were before.

Considering that the idea is to get people back to work, giving them enough where they think that they can retire early would also be counter-productive.

Such a largess could also benefit those who lack health insurance. With a sizable chunk of change in their accounts, people could use that money to buy health insurance. This helps those who are struggling, while also being beneficial to the big businesses. Essentially, everyone wins.

Regarding the Government

You may wonder where the Government would come into play, beyond funding this endeavor. After all, when talking about the economy, it often branches into things like energy policy, road construction etc. There's also the fairly hefty deficit and debt, which does not help matters.

All the spending, by others as well as myself, is sure to generate a good chunk of sales tax revenue. Even if a person put the money towards paying off their car, that would free up a lot of earned money each month that could be spent elsewhere.

With people having more discretionary funds, businesses would prosper and more people could remain employed. This would add to state and federal government income via an increase in income tax revenue without any tax hikes. That would help balance the budget and help them get their own financial house in order.

Stock Market

I'm no stock guru, but it's safe to say that this would benefit investors too. If profits are up, investors are more likely to buy. More than that, more employed people means that more people are putting money into 401Ks or other retirement plans. This would add another layer of stability to a market that has been rather volatile, as money would constantly be pumped into the market.

So, that's my economic stimulus plan. Would it work? I think so, but that's just me.