Friday, March 20, 2009

A democratised stimulus

The latest payments as part of the stimulus, which as far as I can tell are indiscriminate cash quantities for just about everyone registered with the Govern-mint, have an appeal to me even as it mindbogglingly blows my mind thinking about future taxes required to pay it back eventually.

Essentially, instead of bailing out whatever, or dictating prices for bread, etc. it empowers the individuals acting independently. If they deposit it in the bank, it strengthens that bank's capital in a way that bailouts couldn't. We will have more that we can decide to donate for disaster relief, improve our individual bottom line such that fear of destitution is allayed, without it being enough to feel that we are rich and can be reckless. Of course fools and their moneys are soon parted, which means the money should eventually concentrate in the hands of the less foolish. Eventually it should filter through to profits or income to someone who will then pay tax.

It neither attempts to save those that have lost everything in the crunch, nor does it punish those that profited from payouts from entities requiring bail-outs. WE decide who is deserving of our measured piece of this stimulus.

As a counter-cyclical plan from a government that has been very conservative through a boom, it is almost masterful. To get the impression that this sort of thing can be done at any other time for any other reason, is foolishness.

1 comment:

Chris Fellows said...

Hehe, your anniversary is 'Harmony Day' :D