Thursday, February 5, 2009

Economic Stimulus: Spending plus Tax Cuts

American Recovery and Reinvestment Act

On the Web site:
"Check back after the passage of the American Recovery and Reinvestment Act to see how and where your tax dollars are spent. An oversight board will routinely update this site as part of an unprecedented effort to root out waste, inefficiency, and unnecessary spending in our government."

It might be valuable to also see how and where our tax dollars are PROPOSED to be spent. That is to say, to be able to review the proposed legisation's line items of spending BEFORE it becomes law.

An objective of the American Recovery and Reinvestment Act (of 2009) appears to be: Give money from the government -- bailouts, stimulus packages -- back to the people and companies. Why then, does the government take so much money -- taxes -- from the people and companies? It might be more efficient, and perhaps logical, if the government simply didn't take so much money from the people and companies. This would reduce the duplicative work -- first collect it, then return it -- of giving the money back.

If you are interested to read the opinion of a nationally syndicated radio talk-show host regarding the general subject area of "Economic Stimulus", THE WALL STREET JOURNAL has published this op-ed piece written by Rush Limbaugh:
"Keynesian economists believe government spending ... is the best way to stimulate our staggering economy. Supply-side economists make an equally persuasive case that tax cuts are the surest and quickest way ... We know that when tax rates are cut in a recession, it brings an economy back.

In this new era of responsibility, let's use both Keynesians and supply-siders to responsibly determine which theory best stimulates our economy -- and if elements of both work, so much the better. The American people are made up of Republicans, Democrats, independents and moderates, but our economy doesn't know the difference. This is about jobs now."

Read more: My Bipartisan Stimulus -- THE WALL STREET JOURNAL

Student Loan Repayments
(Paraphrased from an unknown stand-up comic) "If the government was so serious about me making my student loan payments, why did they let me continue in that (insert here famously impractical career choice) major!"

Scary thought