Quote:
Originally Posted by Villages Kahuna
See my reply to the discussion on a "thoughtful response" in another thread.
But the proposal to send every couple $50,000 0r $100,000 doesn't work. I might even agree that such a one-time stimulus would actually revive our economy. But unfortunately $50,000 for every to people in America would be an expenditure of $5.5 trillion. $100,000 per two people would be $11 trillion dollars--that's would result in an immediate doubling of the U.S. national debt.
And we do know what happened to the money spent on tax rebates earlier this year. The statistics show that most people either paid down existing debt or saved the money. Neither had the planned effect of stimulating the economy.
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OK, but try this one on for size. As you know the states are salivating at the thought of getting and spending "stimulus" money. Of course the false assumption in Washington is that this is what we need to do to stop the recession and/or prevent a depression. So, I learn on a news talk show that my home state of Pa's capitol city Harrisburg has proposed to "build 2 new giant hotels with stimulus dollars". Only 1 problem.... there are already TOO MANY HOTEL ROOMS VACANT IN HARRISBURG, PA!
So, we put all those good people to work building hotels we don't need and when they're finished being built we lay off the employees from the older hotels that are not even full now. Yep, that's our government in action. Anyone remember Arnold's movie Terminator????---> Game over!!!