Tentative Deal Reached on Stimulus Plan
WASHINGTON — House leaders and the White House on Thursday announced a tentative agreement on an economic stimulus package of roughly $150 billion that would pay stipends of $300 to $1,200 per household, and more for families with children, plus provide tax incentives for businesses to encourage spending.This will do little in the short run, will probably do harm in the long run and do nothing to actually fix what's wrong with the US economy. The Bush "recovery" was never a recovery for most Americans. It was always based on credit not growth and now that it's time to pay the bills people can't. Business was given tax breaks to spur investment - it worked, in China. I listened to Jazz on Mid Stream Radio this morning. His guest was economist King Banion who when asked about job outsourcing said that America should concentrate on doing what it does best - Financial Management - AKA, rubbing money together to make more money. Of course judging the current economic mess the US finds itself in saying that's what we do best is absurd but more importantly how is this going to create enough decent employment for a country with over 300 million people? He did say one thing that I did agree with; the responsibility of a corporation is to make money for it's stockholders. While this is true it points out another serious flaw in the system. We tend to equate Wall Street with the economy. At one time that may have been true but no more. Wall Street is more like Los Vegas. Performance is all about this quarter and maybe the next. As a result only short term decisions are made - no one ever looks out further than three to six months. This is bad for the US and bad for the corporations themselves. In this environment it is necessary for the central government to encourage business to do the right thing for both the economy and the corporations own long term interests. What sense does it make to give tax breaks to companies that jeopardize the overall US economy by moving jobs to China? It only makes sense to the gamblers and dealers on Wall Street who see large short term gains.