How should the government put to the best use the near-$1 trillion stimulus package? There are some interesting ideas floating around.
One is, of course, President Obama's plan and that is to cut some taxes and invest the bulk into rebuilding our infrastructure and developing alternate energy sources, among other things.
Another, and this is not an official Washington proposal, is to simply divide up the $1 trillion among the taxpayers.
The second plan is an attractive alternative. If there are, say, 100 million taxpayers (and I'm rounding off to make it easier math) that would mean $10,000 for each to spend as he or she wishes.
Give me 10 grand and I could fix up some stuff around my house and maybe even get that new flat-screen TV I've been wanting. If everyone did the same, it would put some money back into the economy – quickly.
But what if I decided to simply put the money in my mattress or into my low-interest savings account? I doubt that I, or many others, will trust my money to the stock market for a while. The $10,000 is not going to save my 401 (k) in time for my retirement, which is now much farther off than I had anticipated.
And the $10,000 would be a one-shot deal. Give me 10 grand to spend this year, but what about next year? How about giving me just half and put the other $5,000 into the building plan?
Sinking the funds into projects such as infrastructure and alternative energy translates into jobs and not jobs that will only be around for a year. These are long-range projects that could not only stimulate immediate jobs but would spin off secondary work. That's a long-range plan.
Some form of the stimulus plan is a certainty. With luck, it will get done quickly and in a bipartisan manner, but don't hold you breath on that.
So, do I want to be the grasshopper and fiddle away some instant gratification or the ant and prepare for the long haul? For once in my life, I think I'll take the ant route. I'll delay the new TV until things look better economically, whenever that might be.
