#015 — The MyMoneyMinute Economic Stimulus Plan (Part 1)
Congress has passed a $787 billion economic stimulus bill, much to the disapproval of many Republican leaders.
In my humble opinion, this stimulus package, due to be signed by President Obama today, misses the mark. Lots of money is being spent on projects that either (a) provide only temporary jobs or (b) provide no employment whatsoever.
“So what would you do, Jason?” Well, glad you asked..
Part One: Fundamentals
Before any specific proposals are given, a stimulus plan should first begin with basic, fundamental philosophies.
Fundamental #1
This is the taxpayer’s money. Be efficient, not frivolous.
If it’s one thing we can learn from government spending, throwing money at a problem without a clear objective will not solve the problem. For a Republican “I told you so”, bring up our education bureaucracy. For a Democratic “I told you so”, point out no-bid contracts in our War on Terror. Money is needed for both education & defense, but the point remains we are often inefficient with how we spend it.
Fundamental #2
Short-term cash injections must have long-term benefits.
I understand that unemployment is rising and near-term jobs would help significantly. Even if the jobs do not last forever, the money should be invested in projects that help our nation & economy long-term.
Fundamental #3
Economic stimulus funds must reinforce & encourage good financial behavior.
In other words, no more blanket stimulus checks where we send $600 to every taxpayer. You know what I did with my stimulus check? Paid off debt. So did many others. Those that did spend their stimulus check only contributed to a temporary fix to a long-term problem. Now the money’s spent and our economy is still sluggish. Worst of all, the government reinforced bad financial behavior by giving people money and telling them to spend it instead of taking care of their household first. Encouraging the citizenry to buy a flatscreen instead of paying down a credit card is not sound financial policy.
Come by tomorrow and see specific proposals in Part 2 of The MyMoneyMinute Economic Stimulus Plan!
The Big Fundamental
Are there other fundamentals you would add to a government stimulus plan?
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