Reply #39: A Way to Revive Spending [View All]

[DanNewman]

Despite the high tensions here, there are good questions raised about my column in the Washington Post. Here are answers to many:

>the Bush rebate checks didn't stimulate shit compared to other means of economic growth
>figured you could only give someone a check, and they would simply save it, or use it to pay bills, etc. Things that wouldn't exactly stimulate the future economy.

That's exactly right: rebate checks were saved at too high a rate to help boost the economy. The American Gift Card can do better, as it can be used directly, without sitting first in a bank. It's the difference between having a bowl of chips on your counter instead of having one stashed at the back of the top shelf.




>We need better paying jobs to fix this in the long run.
> Jobs, not rebates or debate cards.

We do need jobs, and the gift card is meant to help us get there, during the months job programs take to get underway.




>Such cards at the very least should NOT be redeemable... where 95% of the merchandise is made in China

I believe in helping Americans first, and I understand this concern.

But despite the huge number of products made in China, well over 80% of dollars are spent on domestic goods and services. Even without restrictions on the card, it really will help Americans.



>I don't want the government in effect charging me (or my grandkids) $2,000 in taxes to force me to spend $2,000 on shit I don't need..
>The $2,000 we would "have" to spend

You can keep it and save it if you wish, at no cost. $2,000 goes to you then back to the government a few years later. Even the interest goes to you and back. It does nothing in such a case, but also costs nothing.

In the event you choose to spend it, it can help anyone working at the places you like best. No one in the government will choose which those are, not for this program at least. You will.




>Equally insulting to think this will *shut up* those folks who don't want coins tossed from a limo, they want JOBS.

I mean no insults to anyone, and I desperately understand the need for jobs. Since small-businesses, and everyone working in them, need customer demand, short-term relief will help while larger jobs programs begin. Job-creation programs, better healthcare, and infrastructure improvements can take months to get underway, and if we do nothing faster, we're going to see more jobs lost in the meantime.




>I'd rather just give my entire $2,000 to someone who can't find a job, can't work because of medical issues, or is working at subliving wages.
>What do you have against elderly retired people, disabled people?

Those having the hardest time need help the most. Please do read my column, which suggests this approach instead of the currently proposed tax cuts that give to those who need it least.

The gift card isn't meant to replace expanded unemployment benefits, or healthcare, or job creation. We still need all of them.

But when your house is on fire, there are things to do even before installing sprinklers. The 600,000 jobs lost last month represent only one sixth of the the total losses since the start of the recession. We need relief now, while all other plans take root.

The $2,000 gift card isn't meant to be a full solution. But it's a strong tool we can put in the hands of every American, right now, this week.

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