Strong Opinions On A Second Economic Stimulus Package

by Jacques Sprenger on 2008-11-0437

What are your thoughts or opinions on a second stimulus check? Is this second economic stimulus package a good idea?

SVB: We’re all set to go to the voting booths today, so I thought it would be apropos to invite our contributing writer, Jacques Sprenger (who enjoys politics and who brought us our spirited Obama vs McCain discussion), to reflect on a few more matters in our financial horizon.

“Such tradeoffs inevitably involve value judgments that can properly be made only by our elected officials.” ~Bernanke

Tradeoffs, also known as “I gain, you lose,” will be evaluated by our elected representatives, said Bernanke to our magnificent senators and representatives when talking about a possible second economic stimulus. He’s referring to the very same people who got us in this mess to begin with. Would you trust their judgment? I hope not. A second stimulus will only deepen the tremendous deficit of our national treasury, as if we could afford another handout.

second economic stimulus package, stimulus check
Photo from the NY Times.

La Divina Commedia (Dante)

“Should the Congress choose to undertake fiscal action, certain design principles may be helpful. To best achieve its goals, any fiscal package should be structured so that its peak effects on aggregate spending and economic activity are felt when they are most needed, namely, during the period in which economic activity would otherwise be expected to be weak.” ~Bernanke speaking to Congress

This masterpiece of gobbledigook, the secret language of turkeys heard just before Thanksgiving, can be translated into a much simpler message: “Give the money (economic stimulus) when and where it’s needed.” No kidding! Mr. Federal Reserve himself is showing his remarkable talents at speaking a lot without saying anything we don’t already know. A graduate of Harvard and MIT, Mr. Bernanke is proving to all of us that these universities produce a lot of smooth talkers who know absolutely nothing about the real world.

Your Economic Stimulus Check’s Disappearing Act

We don’t need a new stimulus check (my first package disappeared the next day and was never seen again). What we need are jobs — good jobs — and lines of credit for small businesses which employ more than 80% of the labor force in the U.S. We need to get rid of incompetent politicians, incompetent bureaucrats (starting with Bernanke), and entrenched CEO’s who willfully invested other people’s money in risky ventures.

A Stimulus Check, For Ten Thousand Dollars?

Dear sirs, what about a consumer “bailout” package? Even though our once mighty dollar has recovered some of its losses to the euro, the reckless printing of more money to finance all these “rescue” packages can only hurt us in the long run. But let’s play devil’s advocate for a minute and see the other side of the argument: just a thought — but if the government is intending to give money away to people, they should instead have considered it BEFORE approving the bailout of $700 billion to failing corporations. We could have given every family in the US ten thousand dollars, and with that larger amount, we could have seen how fast the economy recovered its strength (though you may disagree, as clearly, there are many households that may have trouble dealing with this kind of money responsibly). In an ideal world, that money would have ended up in banks (solving the credit crunch), in the mall (solving the spending crisis), and in paying credit cards (solving the tremendous personal debt).

Main Street vs. Cul-de-Sac

Do you suppose that this way, Main Street could recover much more quickly, while Wall Street awaits the ‘trickle up’ effect so dear to John McCain? The $50 billion proposed by some democrats in Congress just before the election sounds a little too much like a bribe for the electorate. Giving each family a modest $1,200 won’t solve our middle class problems. It will be limited to the stimulation of spending, which is what we did with abandon for the last 18 years without thinking of the consequences.

I’d vote against the idea simply because it comes from Washington. Hopefully our incumbent politicos will be replaced by citizens with a little more integrity and intelligence.

Copyright © 2008 The Digerati Life. All Rights Reserved.

{ 31 comments… read them below or add one }

b4uno November 4, 2008 at 7:42 pm

Economic stimulus will be the least of our issues. This radio show is about what is truly at stake in this election, and what we are TRULY voting for. This election can change the mindset of the entire country and could have an effect for years to come. Most people don’t think of it in this way. It’s very surprising. And either way you decide, you will at least be aware and understand the unspoken implications. If you like what you hear, please pass the link on to others who you may think might like it.

http://tinyurl.com/5znubc

Jesse W. November 4, 2008 at 8:51 pm

GREAT picture! classic…

Kurt November 4, 2008 at 8:53 pm

Yeah, I agree, a second package wouldn’t do much to allievate americans fears right now, particularly since the economy is worse off now than it was when the first package came out. I sure hope the Government is more then just a one-show pony…

Aaron Lee November 4, 2008 at 10:10 pm

God bless America :) I’m pretty sure America will recover from the current economic depression as always.

Web Talk November 5, 2008 at 11:49 am

As European living in Europe I greet the result of this past election as a a way to get out from our recession as well. if the States gets better the whole world gets better. that’s a fact, no matter what other people say!

Jamie November 5, 2008 at 1:12 pm

We love our hummers don’t we. I don’t think we will actually ever see a second stimulus check to be honest, however I hear it has been a major issue in congress. It will be interesting to see what will happen within the next few years with Obama at the helm. It will be very interesting.

The Debt Helper November 5, 2008 at 3:00 pm

wonder whether Obama will change the current policy which appears to be spend as much money as possible on the problem and it will go awy. It can’t go on like this and remember our children will be picking up the bill in higher taxes

The Digerati Spouse November 5, 2008 at 3:08 pm

About the only thing that would give me confidence in the economy is if the government would stop sending out stimulus packages based on borrowed money.

Mary@SimplyForties November 5, 2008 at 9:10 pm

Much as I like to get checks in the mail, this is one I don’t want to see.

Goran Web Design November 6, 2008 at 8:22 am

Now that’s very funny. That board statement can be interpreted in so many ways.

Matt @ MyFinancialRecovery.net November 6, 2008 at 2:16 pm

Right on Digerati Spouse! I am also a bit tired of the government borrowing for everything. Of course if they are going to send them out anyway I suppose I would just put it into savings.

Miss M November 6, 2008 at 2:50 pm

I didn’t get a check the first round so I doubt I’d get one if there is a second round. I make too much when compared to the average american, but living in high cost Los Angeles means my above average salary barely gets me into the middle class. Whatever, until we change the spend till we drop mentality these problems will keep coming back. So I really hope there isn’t a 2nd one, our country is broke and shopping for consumer junk would just be a band aid on a big bleeding wound.

DES November 7, 2008 at 4:20 am

What a silly idea – go into debt (thus costing the public money) by giving the public money to stimulate the economy!

Jacques Sprenger November 7, 2008 at 3:19 pm

Thank you, Des, you are right, totally. The government get into more debt so we can spend more? Who will pay the piper eventually? We will! And your children’s children will also.

Goran. Could you expand your cryptic statement?

Austin Real Estate Broker November 8, 2008 at 2:44 pm

I agree that checks don’t really cut it. What we need are new jobs and lots of them. I’ve always hated the incentives to large companies that make a ton of profit, but move jobs. What I want to see is a tax incentive for new jobs so long as the jobs are created here in the US. I think I finally heard it mentioned during the campaign, but only time will tell if the new administration is able to enact it.

Joe

Escape Somewhere November 8, 2008 at 3:57 pm

I think Joe is right on. If we are going to throw money at corporations we need to tie the money to what they do. Thats what kind of bothered me about the bailout package. We just threw a bunch of money at the banks. I think we should have tied it to increased lending. Throwing a bunch of money randomly at something rarely fixes a problem. The money should always be tied to incentives.

Also we should get a percent of future profits like any other investor.

Duane Goudy February 9, 2009 at 2:42 pm

we should give tax credits on top of tax credits for companies that do not layoff. They just give a paycut, say 15%. They would have 85% of their income vs 50% on employment.

clarisa February 14, 2009 at 2:07 am

i feel like we should have the choice of whether we want a check like last year or the way obama wants to do it. if it was up 2 me i would want the check instead………

Amanda February 19, 2009 at 8:49 pm

I want MY bailout! My family(husband and two young children)and I live in a one bedroom apartment with no working stove and no mantinance people. We live paycheck to paycheck, and were looking forward to another stimulus check this year, if only another $600. I am rather dissapointed and a bit disgruntled that out of $787 billion dollars, my family will only see a $1000 TAX CREDIT!!! AGGGGGHHHHH!!! It makes me sick to think that these banks and automakers and people living the highlife will benefit while the poverty-stricken can’t get a little bit of a freaking BREAK!

Andre Bolden February 20, 2009 at 7:13 am

It is utterly ridiculous that the government we live through has Issued well over a trillion dollars in less than a year to huge corporations, banks, auto-dealers, and other well off companies to try and get “we the people” to spend more. If the American government wanted to really infuse stimulation they’ve be “giving” significant money to “We the People” to inject it properly into the economy. Instead of bailing out banks who were certainly apart of creating current crisis they need to be satisfying the mortgages middles & lower class, written from 04-08. It is very well evident that this goverment once again will be trying to pull wool over our eyes, as if we’re ignorant enough to believe what they are doing is going to help anyone. And you better believe the very companies that are sustaining themselves are taking advantage of their employees most effected by this crisis by not paying fairly, holding back, bonuses, curtailing raises, decreasing commission payouts, anything they can to get legal cheap labor. I wonder why no one talks about these things in the media.

tasha February 23, 2009 at 2:04 pm

I believe we should recieve an economic stimulus check due to jobs not paying enough and requiring us to work long and hard for $7.30 an hour that i have to make last when it comes down to bills,food,transportation and good education. Things costing more in life not less.

MICHELLE February 27, 2009 at 3:17 pm

WHATS 65.00 THE BANKS ARE GETTING BILLIONS DID YOU SEE THE PRICE OF FOOD EVERYTHING WENT UP THE 65.00 WON’T EVEN COVER THE FOOD BILL FOR THE MONTH HOW SAD

robert March 9, 2009 at 1:15 pm

i truly don’t understand what is going on; a few more bucks in our paychecks, tax breaks on purchasing cars or a house? were the heck are we going to get the money to buy a new car or house! we’re supposed to do this with a few more dollars a month? what a joke!

robert March 9, 2009 at 1:34 pm

i recently ran my own bus. employed 3 to 5 emlpoyees at a time wasnt a big company but did everything as best i could to keep food on my table and theirs recently went out of bus. couldnt make it any more did,nt employ alot of poeple but did employ some were the heck was my bail out money i could have saved my company and their jobs but now 6 poeple unemployed and thats just my story how many others the government says there trying to creat jobs and save jobs well how many have we lost like this they give car companys and banks all this help and money to save jobs so i wonder how many jobs were saved this way and how many would have been saved if they helped company like mine and others all over are country i wonder what the number would be

dan shawver March 12, 2009 at 10:29 pm

that’s pretty good. I read somewhere that if you make $8100.00 then there’s a tax cut. What about us people who don’t make that much. We get nothing, which is wrong! We should get a check for $400.00 then.

Wendy March 13, 2009 at 2:42 pm

I think they should give out a second check . I have worked for the past 20 years of my life and now for the first time I am unemployed and struggling to make it. Please send us — the people who are unemployed by no fault of their own — some help!

donna March 14, 2009 at 4:57 pm

i am so fed up with all this talk about this stimulus package helping everyday people. so far i have seen nothing to help me out. ive always been a hardworker and was laid off my job in nov. cant find a decent paying job and cant pay my bills and eat too. send me some money. these tax breaks are a joke.

seema April 5, 2009 at 6:02 pm

i think we should receive a stimulus cheque because most of the american lost their jobs and that stimulus cheque will help a little for most families so hope we will receive a stimulus cheque in 2009.

charlene April 17, 2009 at 3:55 pm

I feel they’re should be a sec stimulus check ! the first one’s sent out i think were too small
for people to go and spend $300-$600 and probably didn’t help anyone much,if they could
a big enough one people will be more likely to go out and spend it,and these tax cuts i’m afraid aren’t going to help much either,but i guess will just have to wait and see.

Stimulus Check May 29, 2009 at 11:16 am

I don’t think there will be a second stimulus check, and if there was, it would be a band aid for how 2009 was handled. why not come back next year and make ppl forget the one this year.

Cathy Charette October 9, 2009 at 8:51 am

Dear President, you people all talk about upper class, middle class, what about the poor people? I would like to see how you people could live on a small income like some of the people on S.S.I or Disabilty. Some people do good on disabiltiy, but the people that are on S.S.I don’t really make $700 or $800 a month. I would like to know how they make us do better in the economy, if we cant make it thru the month, with rents, utilities and other things that you have to have. sincerely Cathy Charette

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