Democrats, now backed by Federal Reserve Chairman, Ben Bernanke, are calling for a second stimulus package which could cost as much as $300 billion. To clarify, that’s $300 billion on top of the $168 billion stimulus passed last February and the more recent $700 billion economic bailout. I believe we are nearing the point of “enough is enough.”
Even if the stimulus package is consumer-oriented in design, the idea that consumers will get a check and immediately spend it is insane. Let’s give Americans the benefit of the doubt and assume they’re at least aware of the current financial crisis. A reasonable person will get that check and either save the money or use it to pay off existing debt – not go on a shopping spree (unless, of course, you’re Sarah Palin). Christmas might inspire those savers to spend but the likelihood that the Department of the Treasury could get those checks out in time for the holiday shopping season is slim to none.
Dropping gas prices could amount to the equivalent of a $125 billion stimulus (according The Austin American Statesman) yet as individuals are spending less filling their tanks, they’re certainly not taking this opportunity to pick up that new flat screen they’ve been eying. A recent AP-Yahoo News poll shows that one in three Americans fears losing his or her job and half are worried about keeping up with mortgage and credit card payments. I would call that a pretty good indicator that stimulus checks are going straight to the bank and not to the mall.
The truth is, Americans need to accept the fact that the economy won’t turn around until our “years of reckless consumer and government spending are brought under control” (The Dallas Morning News). Another stimulus package will simply make the situation worse.
Shelley Moore
Zilker Ventures, LLC
