Reply #92: Its not part of the solution. Its an ineffective waste of borrowed money [View All]

[Oregone]

Most consumer spending, if the government can even inspire it (consumer saving is skyrocketing BTW), only stimulates production in foreign countries where the consumer goods are mostly produced. Yes, the man driving the boat over here might get paid to, as well as the low paid Walmart worker. Tax cuts/rebates/etc are essentially borrowed money that we allow the consumer to ship right out to China. Otherwise, they may pay down interest/principle on their debt, but no one gets that except the banks.


On the otherhand, foodstamps will (mostly all domestically) buy food, will pay the grocery clerk, will pay for the person shipping items, will stimulate production for more at a factory/farm, will pay the factory/farm workers more, will pay the packaging people more, etc. Everyone paid, in turn, can spend just as easily now as if they had a tax cut.

Infrastructure spending will, pay workers on site, pay the shippers, pay the producers or the raws, pay the concrete companies, pay the tool producers, etc, etc.