Tuesday, January 22, 2008

Economic Stimuli

It seems that Congress and candidates are promising stimulating the economy short term by offering rebates that would give a few hundred dollars to people. The idea is that low to middle income folks will spend and that should give the economy a boost.

I know I'd love a few hundred extra dollars, but the problem here is this. As long as the government is unlikely and unable to control things such as gas and energy costs, rebates are not that effective. Any short term spike in energy, and thus food costs, would gobble up that rebate and we're back to square one.

What we need are some fundamental changes in the economy. I'll take the short term fixes but ultimately, it is not going to cut it. Something simply that can be done is to provide tax breaks for consumer green investments, such as given tax deductions for switching to lower energy lights and appliances, etc. Anyway, there are a lot of people far smartter that I would ever hope to be looking into this thing.

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