Aramike's Economic Stimulus Package

Aramike · 02-06-09, 04:35 AM

There is no doubt that the current economic "stimulus" travelling through Congress is a load of bull and pork. Besides the obvious special interest garbage, the spending on infrastructure will do nothing to stimulate our economy. Seriously, give a local goverment $10 million for roads - do you HONESTLY believe that any shovel will hit the ground within a year or two?

Unlikely. First there would be months of discussion on exactly where to build roads. Next there would be months of bidding by contractors. There will be environmental impact hearings. There will be protests. Yadda, yadda. We all is said and done, it could be upwards of three years before any of that money is actually spent - which does nothing whatsoever to stimulate the economy.

So, I propose a two part solution:

Part One: Cut the corporate tax rate from around 35% to about 20%. This move would IMMEDIATELY add billions of dollars to the corporate coffers, allowing for job creation, innovation, modernization, etc. But, more importantly, this would immediately impact earnings and stock dividends and begin increasing the value of investments. I'd bet the stock market would gain upwards of 30% within the year due to this alone, as the value of shares would immediately be increased. Also, this would positively impact retirement funds that may have been degraded during this economic slowdown.

Finally, this would attract businesses BACK to the US, as many have moved elsewhere in order to benefit from favorable tax environments. Add all of the above together, and you see instant job-creation which adds money to the economy, which creates government revenue, which helps compensate for tax cuts, which ... on and on.

Part Two: Consumer spending MUST be stimulated immediately. Demand for goods and services is the primary key to driving our economy, even moreso than the markets as demand tends to dictate stock values. But, as we saw, sending people checks had limited impact due to that money simply not being infused into the economy. A lot of that money made its way into either housing payments or, indirectly, the markets where it simply disappeared along with property and share values.

My solution is this: send ALL *TAXPAYERS* a rebate around $600 ... in the form of a Visa/Mastercard/AMEX giftcard. This way, the money will be forced into the private economy and be recouped due to increase tax revenues resulting from higher employment which naturally comes with higher consumer spending. People will still have to use their regular incomes to pay their bills ... this money would directly impact the economy.

I believe this is a reasonable, no bull approach to fixing our economic woes. We are facing a situation where we NEED to stimulate the economy - not use our troubles as an excuse to advance any agendas.

02-06-09, 04:35 AM	#1
Aramike Ocean Warrior Best of SUBSIM Chairman Join Date: Dec 2008 Location: Milwaukee, WI Posts: 3,207 Downloads: 59 Uploads: 0	Aramike's Economic Stimulus Package There is no doubt that the current economic "stimulus" travelling through Congress is a load of bull and pork. Besides the obvious special interest garbage, the spending on infrastructure will do nothing to stimulate our economy. Seriously, give a local goverment $10 million for roads - do you HONESTLY believe that any shovel will hit the ground within a year or two? Unlikely. First there would be months of discussion on exactly where to build roads. Next there would be months of bidding by contractors. There will be environmental impact hearings. There will be protests. Yadda, yadda. We all is said and done, it could be upwards of three years before any of that money is actually spent - which does nothing whatsoever to stimulate the economy. So, I propose a two part solution: Part One: Cut the corporate tax rate from around 35% to about 20%. This move would IMMEDIATELY add billions of dollars to the corporate coffers, allowing for job creation, innovation, modernization, etc. But, more importantly, this would immediately impact earnings and stock dividends and begin increasing the value of investments. I'd bet the stock market would gain upwards of 30% within the year due to this alone, as the value of shares would immediately be increased. Also, this would positively impact retirement funds that may have been degraded during this economic slowdown. Finally, this would attract businesses BACK to the US, as many have moved elsewhere in order to benefit from favorable tax environments. Add all of the above together, and you see instant job-creation which adds money to the economy, which creates government revenue, which helps compensate for tax cuts, which ... on and on. Part Two: Consumer spending MUST be stimulated immediately. Demand for goods and services is the primary key to driving our economy, even moreso than the markets as demand tends to dictate stock values. But, as we saw, sending people checks had limited impact due to that money simply not being infused into the economy. A lot of that money made its way into either housing payments or, indirectly, the markets where it simply disappeared along with property and share values. My solution is this: send ALL TAXPAYERS a rebate around $600 ... in the form of a Visa/Mastercard/AMEX giftcard. This way, the money will be forced into the private economy and be recouped due to increase tax revenues resulting from higher employment which naturally comes with higher consumer spending. People will still have to use their regular incomes to pay their bills ... this money would directly impact the economy. I believe this is a reasonable, no bull approach to fixing our economic woes. We are facing a situation where we NEED to stimulate the economy - not use our troubles as an excuse to advance any agendas.