How would YOU stimulate the economy?

With so much of our time dedicated to the debate of whether or not Obama's stimulus package will actually help the economy, how awful Bush's stimulus package was, and the general moaning about how wrong our opposition's ideas on how to stimulate the economy are...

...what is YOUR stimulus package?

War?
Tax-Cuts?
Government intervention?

So many people seem to know that what our politicians are putting forward is not going to work... What would work? What has worked? What hasn't? Why do we believe this?

I'll start.

I do not believe in the whole Reaganomic, tax-breaks-for-the-rich, trickle-down, theory. This may have worked when America actually had a significant amount of industry left...but the sad fact is that if we follow this ideal in the modern age, it merely means that people will get a bit of money, that they will inject into the economy, but the production of most of the goods that they consume is happening in another country, therefore, the little that manages to trickle down to the worker is trickling down to a worker in another country, and not really helping America or Americans maintain jobs and keep the cycle going. This aside...for the past 8 years the government has been throwing tax money out and deregulating industry and, I would say, it has only served to create the situation we now find ourselves in.

What I do believe is that government-works plans, not unlike the planning that helped get us out of the Great Depression,, could help Americans get back to work, learn skills, and get us out of this hole we are sinking into...not to mention the fact that America's infrastructure need overhauling, drastically. We need roads, we need electricity, we need high-speed internets, we need to step further into the 21st century...and this need will not be accomplished by corporations...it has to be a guided effort, by the government, for the common good.

The market is crashing. I think it needs regulation and a guiding hand.

To stimulate it, start with the tip and work your way down to the shaft.

Lots of lube and vigorous agitation goes a long way........wait a tic.....what are we supposed to be stimulating again?

It's impossible to stimulate a lie...

The only thing to do is to let the markets clear all bad debt and then start from scratch...

Yes, that means letting banks and corporations FAIL...

Yes, that means unemplyment around 20%...maybe higher

Yes, that means living a sustainable lifestyle that may call for some temporary discomfort...

This charade will come to and end eventually, and the longer we try to play the game, the worse the inevitable correction will be

I was going to start a thread like this!!

Personally I think the best way to stimulate the economy would be to follow Louise Gohmerts idea. Have a 5 months tax free holiday. No income tax, No payroll tax. I think the way out of this mess is to let the tax payers decide where their money will go. On a side note Obama's stimulus package is horrible. There is so much waste, money is being thrown at some of the most ridiculous things I have ever seen. Can you say pork?

The Ron Paul approach - CUT CUT CUT

Cut payroll taxes way down. (and No consumer tax to take it's place).
CUT OVERSEAS SPENDING. No more nation building.

I'd also throw in no more things like this - Obama's promise for Israel -

No. 133: Provide $30 billion over 10 years to Israel
"Implement a Memorandum of Understanding that provides $30 billion in assistance to Israel over the next decade -- investments to Israel's security that will not be tied to any other nation."

more found here

Stop the bleed of money out of America.
Then cut payroll taxes.

www.infoplease.com...

If you get rid of many taxes, imagine how much money people would have to spend?

I don't have a whole big drawn out plan, but I do have a couple of thoughts.

1) Housing is in a period of oversupply with no buyers in the market, this is causing construction workers to be hard up for work since there is no new contracts. This is very similar to what happened with farmers in the Depression. There was a huge over supply of wheat and livestock, which caused prices to plummet to an unprofitable level which caused a ripple to affect banks when these farmers couldn't pay their loans. So FDR started burning up the excess cattle and grain, stabalizing prices.

Solution: Destroy housing. I know it sounds crazy, but that's the economic way of thinking. If you have too much supply you reduce supply. In this case we give the pyro's something to do. Although we could not contaminate the environment by creating government programs to tear down and process the materials into recycable goods.

2) Unemployment Skyrocketing: in times where the market cannot or will not operate the government must step in. With all respect to the Ron Paul crowd, and while I agree with them on many things, there are times when the government must interrupt the free market. Not to mention that there are hundreds of projects around the country that need to be done (roads, bridges, parks, sidewalks, schools) or repaired so that we can come out of this better. Not only are these people out of work, but the work on these infrastructure matters needs to be done. If that means the government must deficit spend for a while then so be it, but when we come out of it (this is the part that makes politicians shut up real fast), I would adhere to true Keynesian economic thought and tax the growing economy while shrinking the Federal budget to pay back the deficit and debt on the whole.

3) Energy Independence. A major thing I would include on a new plan would be that within 10 years we'd be independent of foreign energy resources. No wiggle room, no ifs or buts, bam, throw up wind turbines, nuclear plants, clean coal, solar, everything around the country, modernize the electrical grid, make conservation mandatory learning for our kids, and provide workers/money for improving the efficiency of existing homes and offices. This is what we should have done on 9/12 if we had wanted to fight the war on terror, take it to the pocketbooks.

4) Banks and Automovtives: Let them fail. That is one place where free market should roam free. Let the government projects take care of the workers, and let the market on whole decide who lives and dies.

reply to post by madhatr137


If we could go back to September, I would have given every head of household $50,000 tax free.

I would have formed a unit to prosecute those in the Government and those in the public sector who committed a crime that in any way caused the financial crisis. I.e. Hold people accountable.

I would have let the cards fall where they may and not bail out any companies.

There are a number of other things I would do that would effect taxes, spending, ethics, foreign aid, and education.

reply to post by madhatr137


Can you imagine what would happen if Oil/Gasoline skyrocketed again now with the way the economy is?

I am worried!!!!!!!!!

Bring back to the USA all outsourced jobs, and create an employment market. What this nation needs, is to undo the mistakes caused by excessive outsourcing. I can see one or two private ventures, but entire markets?!

Another thing, stop printing money!

Every dollar printed incurs debt, imagine what the dept of all the bailouts will do...


We used to be a major world player in the global economy, this all changed when corporations decided to screw the little guy and make their own pockets a inch deeper. But look what happened, they now need the little guys to help them out. Well, you screwed us so screw you, you made that bed now sleep in it.

Another way we can improve domestic economic factors, is easy enough to explain in simple terms.

Stop doing what ever causes the damn problem, and do the opposite!

NO MORE OUTSOURCING AND NO MORE BAILOUTS.

Yes, some companies would bust due to ending bailouts and it might be rough for a bit but halting overseas outsourcing would create those jobs back here again.

NO MORE BENEFITS FOR ILLEGALS.

It's ludicrous to pay people who do not contribute to the intake in any major way. It's an 'out' with no 'in.'

ABOLISH RIDICULOUS TAXES.

The inheritance tax, capital gains tax, etc. Many businesses are taxed even for the equipment they use. Thus, it decreases the amount of employees they can afford to hire.

QUIT FUNDING OTHER COUNTRIES.

Let them work it out. Let them sink or swim. Parents in debt cannot afford to be paying an allowance to someone else's children, so to speak, especially at their own children's expense.

I can think of so many more but it makes me sick so I'll stop there. It's so simple that I cannot believe they can't figure it out.

[edit on 1/28/2009 by AshleyD]

my suggestion is to stop take a deep breath.
then there should be a balance of all the books, go through this state by state starting with the books of of D.C. than each state. if the program on the books don't work scrap it. this will free up money and put it in aplace where it is doing good.

You can not build a brick house if you have no bricks. If you are willing to settle for a wood house or even a thatched hut you will have a roof over your head and that is all.

We will never have a country that meets the needs of all the American citizens. We will never have a country that knows peace and harmony. I know I sound like a doom and gloom fatalist but the truth of the matter is that until we fix the disease in our minds and hearts there can be no viable solution.

If I am putting up a wall and you are tearing it down or I am planting a garden and you are digging up the seeds how far are we going to get?

Four words... Six month tax holiday.

For everyone. The government can borrow the $850 billion that it costs for the government to run for 6 months to pay to run the government instead of using our taxes to do it. They would borrow the same exact amount they're proposing to borrow now. The economy would definately get stimulated where it should... where the people are smart enough to either spend it or save it. Whether spending or saving, it is stimulating the economy.

It might even bring some companies back to the U.S.

[edit on 28/1/2009 by Iamonlyhuman]

Well, we cant cut taxes completely, but strict limits need to be put in place. I say we stimulate the economy by taking the govt. checkbook away.

I think all the politicians should be volunteers. I do not think they should get paid for what they do. I think they need to have jobs and face the same struggles as the rest of us.

I think the deficite needs to be delt with. I think it should be illegal for our govt. to spend more than it actually has. That goes for the state as well as federal.

I think there need to be more restrictions on handouts including welfare. There should be limits in place. Unless a person is physically incapable of taking care of themselves financially.

I think if they are going to spend money it would do a lot more good if it was spent on education.

I also think that a parent/grandparent who choose to stay at home and take care of their kids/grandkids should be given some sort of benefit. As it is staying at home is financial suicide as we have no deductions and it is hell on our credit. We are, in a way, punished for it. If this was not the case, many more would stay home which would open up a lot of jobs. I think a lot of problems were created over the past 40 years or so when the workforce doubled, including both Mom and Dad. This would also free up a boat load of money for the parents. There is something set up for if a person chooses to stay home and take care of an elderly relative, I think it would do everyone a lot of good if the same was set up for kiddos.

[edit on 28-1-2009 by mrsdudara]

slash the federal governments size by 75%.

Then eliminate all taxes and tariffs, placing only a 10% flat tax (no deductions of any kind allowed) for the bottom 80% then for every dollar that the top 20% make more than the the ceiling of the bottom 80% make them pay 20% on those earnings.

Thats it, no more deductions BS no more subsidies no more wasteful govt let the people choose how to spend their money.

As for all the newly unemployed former fed workers, I would provide with the little taxes still be received business generation grants to help those former fed employees find work or create businesses. But this would only last 2 years after which it will be eliminated.

I'd cut corporate taxes/capital gains taxes, and implement a flat tax for personal income. I'd give tax breaks to companies that kept their assets in the USA, and invested in low income areas, to improve economic opportunities. A line item veto would be nice too, but I don't see that happening. There does need to be real cuts in Government spending though, not just spending less than you otherwise would have(but more than you were). This would be a start, but there's a lot of other things that could/need to be done.

Two words:

Legalize it.

I would go into detail about how it would work, but Ive had posts banned for less.

First of all i agree that decreasing government spending is a must. Tax cuts also would be beneficial. But this is not stimulating economy - it is only trying to patch holes in it. There should be some project that can also stimulate maintaining production capabilities and not letting too much people loose their jobs.
I know that some will find what i suggest as something dangerous and threatening since it will have word "global" in it. But it is global crisis and disregarding how (or why) it happened to develop as it did, solution should be also global.
So i suggest starting some huge global economical-scientific project. Like Mars colonization thing. There is money, just those who have it now keep them out of investing in world economy for fear of losses. So let them spend it with promises of future gains - in territories/ resources on Mars. It will be not fair of course, since again rich will gain more then poor but it always was that way. Even in Communist countries. So money will be injected in economy, production will rise again, science will be more invested in and we will go on running in the wheel of economy for a little longer. And beauty is that it is really needed project so it is all gain. Plus common cause effect might let mutual conflicts die out for a while.

1. Get rid of the goonheads in Washington who do nothing but get rich on our tax dollars. The size and cost of government must be significantly decreased.

2. Give tax breaks to all employers who create jobs rather than cut them.

3. Tax increases, fines and penalties for corporations who ship American jobs out of the country.

4. Additional tax breaks for small businesses. While corporations are the life blood of Wall Street, small business is the life blood of Main Street America.

5. Bring back the manufacturing base that made this country strong in the first place. Give incentives for people to work the manufacturing jobs. Human beings were not designed to sit in little cubicals, staring at computer screens all day.

6. Encourage American consumers to buy American made products.

7. Debt forgiveness programs. But only for those who truely need and deserve it.

[edit on 1/28/2009 by Lightmare]

[edit on 1/28/2009 by Lightmare]