The Stimulus Plan Sucks

[Coyote_Bandit]

Mind you I'm not against a stimulus plan and I'm not opposed to government intervention in order to protect personal assets and provide some stability and predictability in markets. I just think this particular stimulus plan is a complete and utter waste.

Like the last stimulus plan it isn't going to do much to create jobs. A lot of it is going to be put into savings, used to retire debt, or used to purchase imported crap. Most of that isn't going to do shit to creat new jobs here in the US. Although with an additional $20 a week or so resturant traffic just might pick up a bit and return to previous levels.

The stimulus plan is grossly inequitable and fails to provide a stimulus to all taxpayers. There is no stimulus for those with taxable income derived from something other than a traditional paycheck. That would include everybody who pays quarterly estimated taxes regardless of the source of the income. And that includes a lot of low income and self-employed folks who pick up whatever work they can in order to bring in a few bucks.

There is no stimulus for unemployed folks who are struggling to meet expenses. The folks who most need a few extra bucks aren't going to see any help. And the long-term unemployed are truly fucked. There is at least talk of relaxing COBRA rules and extending unemployment benefits to the recently jobless.

The worst failing? The stimulus plan represents a tremendous investment in a wasted opportunity. It is nothing less than an investment in perpetuating a consumer driven economy. A consumer driven economy that will likely require several ***YEARS*** to replace lost jobs - if ever. Meanwhile, there are going to be a whole lot of folks that are going to be forced to create their own jobs and their own source of income. Why not invest in these folks? Why not use this opportunity to invest in creating new jobs by supporting new business endeavors?

Often the two greatest obstacles new and small businesses face are access to capital and health care. Both of these obstacles could be addressed by making the stimulus money available for SBA loans and making new and small business employees and their families elegible for Medicare coverage. Long-term this would have a far more beneficial effect to our economy.

But I don't expect it to happen. But the fact that it isn't even being considered suggests to me that this country is really and truly long term fucked. We don't want to entertain new and possibly much better alternatives. We are far more interested in taking a duct tape stimulus approach in an effort to retrieve and return to our past. How unimaginative and lacking in political leadership and will.



Flame away.

[Dawgs]

1. I don't think it sucks.

I would change a lot of things as well, but it's not terrible. I do agree that we need to be more imaginative.

[ogneopasno]

2. Well sure, if you want a plan that solves every single problem and that will get passed as is by

Congress, then yes, the current plan sucks. Fortunately, I think this administration is going to look at a lot of different options. Nothing is going to be solved overnight. Frankly, at this point, I think they're just looking at how they can slow the bleeding, rather than getting the patient up off the table.

[stillcool]

3. Here's a summary of what is in..

the Senate Stimulus Package. Perhaps you'll find something you like?
http://www.prospect.org/csnc/blogs/ezraklein_archive?month=02&year=2009&base_name=the_senate_stimulus_bill

[Myrina]

4. .. so if payroll taxes are being rolled back to = $20/wk ...

... what about all the people not working/getting unemployment etc ... how is this going to benefit them?

Nothing from nothing leaves nothing, IIRC.

[Coyote_Bandit]

6. In my state

unemployment benefits are taxable but taxes are not withheld from the unemployment payments.

But you're right, there are a lot of folks who could really benefit from a few extra bucks who will be denied any stimulus because of the way this plan is structured.

Many of the folks who pay quarterly estimated taxes have unpredictable and highly variable income and earnings. Often they do not know what their annual income will be until year end. Yet they are required to make quarterly estimated tax payments. If they underpay the tax piability then they are subject to IRS penalties. The only certain way to avoid those penalties is to make estimated tax payments through the year in an amount equal to the prior year tax liability. No stimulus for these folks either.

[hughee99]

5. Yes, but we "have to do something"...

Just look at all the great legislation that has passed because we "have to do something right away" instead of wasting our time figuring out the right way to do things. Just look at the Patriot Act and Corporate bailout bill. They did exactly what they were designed to do with no unintended consequences. :sarcasm:

[Redbear]

7. I'm not sure how you come to the conclusion that the plan doesnt create many jobs

Funds to repair and build new roads and new mass transit facilities will create jobs immediately

Funds to build and repair schools will create jobs

Funds to upgrade school and health technology and increase the spread of broadband will create jobs

Funds to repair public housing, veterans facilities, DOD facilities, and weatherize homes will create jobs

Money to states and localities will save government jobs


Plus money for more small business loans, more student grants and loans

and there are at least a dozen more job creation measures.

[Coyote_Bandit]

8. That $20 a week or so

that will go to folks who have traditional jobs with a regular paycheck isn't going to do much to create jobs in the US.

That money would be better used elsewhere for other economic stimulus efforts. And it is inequitable in that not all taxpayers benefit.

[Redbear]

9. Creating jobs that will go to people who are unemployed or underemployed

is one of the most equitable things a government can do.

Especially when you consider that the man or woman with the new job will spend that money on cars, housing, groceries and many other things that will benefit people working in those industries.

[lib2DaBone]

10. Tax Cuts HAVE NEVER stimulated an economy long term...

..they only create bubbles and then a bust. Listen to Tom Hartman on Air America. I think he is one of the best informed on economics.