My Stimulus Question

February 16, 2009

I have an economic stimulus question. Instead of bailing out companies, what if the government only gave a stimulus to individuals?   The money would pass through individuals and eventually get to the businesses that the collective people wanted to save.

Pretending that politics aren’t a factor, is there a practical problem with stimulating the economy this way?  It seems that pushing more money through the people helps those people and allows a more capitalistic way to bail out worthy businesses.

4 Responses to “My Stimulus Question”

  1. Dusty said

    So, my dearly beloved, here’s why that doesn’t work:

    Giving money to individuals will get spent on gas, toys, and rent, but it does not create jobs. It does save jobs (by keeping some stores open that people buy things at.)

    But since individuals don’t create jobs, and businesses do, you have to keep them afloat so they can create more jobs and keep people off the employment line.

    It’s all about job creation… that’s what saves floundering economies.

    The end.

    However, let me emphasize, I’m full of shit.

    Love you.

  2. jasonhenle said

    Regardless of what people spend money on, eventually doesn’t that money filter its way up the chain to potential job creating places? After buying standard-issue consumery things, the money doesn’t stop changing hands, what gives?

  3. I think you are mixing the two situations. However, this Spending Bill that President Obama is pushing will drown USA more. 35% tax cuts, gimme a break. The other things they put there were Democrat wishlists/pet projects. It is ridiculous. You don´t need to do all that there. USA will be in better shape with $100bn for real stimulus. I will post the song on Youtube soon. But you can get a copy of the single thru Amazon mp3 this week.

  4. jasonhenle said

    Regardless how large or effective the stimulus will ultimately be, what would happen if all stimulus entered the economy through the people instead of buisness. Might that have an equal, less, or greater outcome?

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