We are now witnessing a new move by the government to stimulate the economy. $145 billion is the amount that will be injected in the economy soon in order to give or some spark. Will this action really help?
First let's look at who will be responsible for enacting the stimulus: it's the same old congress that is supposed to make this happen. This body has the habit of taking a good idea and turning it into a nightmare. We do know when they will finally act and most of all, what they will come up with. Partisan bickering will undoubtedly get in the way: who should be included, how much to give each recipient and when to start doling out the funds. By the time a final compromise is reached, chances are nothing significant will take place.
A stimulus, like a surge is temporary. Is this another bandage that hides the real issues? Low interest rates do not appear to work so far. Freezing the rates has not worked either and more rate cuts will not yield better results. What is next?
Like the surge in Iraq, the stimulus package may provide temporary relief, but it will not really solve the crisis until fundamental changes are made.
No comments:
Post a Comment