Bush Rescues Economy?

In a desperate need of a prophylactic to prevent an election year recession Washington came to a bipartisan agreement on the Economic Stimulus Package. This legislative move will warrant the issue of tax rebate check to millions of Americans. The pay outs will range from $300 to $1,200.

President Bush claims that The Rescue Package will be a “booster shoot for the economy”. Capitol Hill’s tight-ties hope the money will burn holes in the recipient’s pocket and stimulate the sluggish economy.

Even though this is a $117 billion stunt, the frivolous spending to follow won’t stimulate the economy anymore than anyone’s regular tax refund. Those that earn at the top of the salary spectrum will be rebated enough cash to blow on a weekend out. The majority and the other end aren’t likely to start a service business.

Think about it, with the bulk of our manufacturing living across seas, just whose economy is really going to boost.

Economy is to humans as ecosystem is to amphibians and insects. There are niches and someone delegated to them. The niche missing in our ecosystem is jobs! Service jobs and manufactory jobs give the economy “residual income”. People making money all the time make good viable consumers. Viable consumers buy goods and use- over priced- services.

Let’s be fair, the new bill does have provisions to help businesses investment in new plants and equipment. It is suggested that this, also, would help bolster U.S. economic activity.

Edward Lazear, chairman of the White House Council of Economic Advisers, predicted, “The stimulus will have the effect of increasing jobs by about half a million above the number that would have been the case in the absence of that”.

Right. If a national lay off just swept the country in January, and factories are closed, where are these new expansions going. Overseas, you think? That doesn’t help the American economy.

Reckless lending and bad personal financing are so out of control it will take more than one booster to immunize against all the foreclosures- it’s too late, we need a workable intervention. In Detroit alone 1 in 20 homes are under foreclosure. Does legislation or Bush think anyone will use their rebate on major debts? Good wages give minor immunity to foreclosures, not to mention responsible lending- not a damn tax rebate.