Stimulus?

President Bush has proposed a $150 billion package to stimulate the economy. So far we have no way of knowing what the final package will look like. Bush is looking for something simple and fast - but that is not how our legislature works. But the games have begun and there are all sorts of complicated proposals being put forward. And I really cringe when I hear the word "stimulus". I think of the adrenaline dump I get during a building search with gun drawn and I'm feeling pretty darn strong - and then the nausea and jitters that take over when adrenaline wears off.

So I have several problems with "stimulus" packages. First, they are very temporary. Second, who really pays for them besides you and me? Third, how much of the package is clearly not stimulus but political opportunism? And lastly, do they really work? In 2001 Bush instituted a huge multi billion dollar program and academic studies since then have shown that most of the money went into savings. While this is a good thing, it hardly does anything to pump up the immediate economy.

I believe that if most taxpayers receive some sort of rebate or payment it'll just go towards paying down their credit card debt or maybe their tax bill. Here again, not much in the way of stimulus.

In short, I doubt the stimulus package will do much good and will be akin to spitting on a forest fire. What it really does is to show how much are politicians care about being re-elected (oops, I mean how concerned they are about our problems) and are willing to spend our money to prove their concern.