Our Economy unquestionably needs Stimulus, and lots of it. But, have you looked far into the details of the proposed "financial rescue plan" (known as TARP)? It may matter more than you think.
What are a few of the Public perceptions that you may have? Here are a few of the Myths...
1.) TARP & Stimulus? -Same thing.
- MYTH! "The Troubled Asset Relief Program" was an $800 billion lending program to stop a run on banks, which is due back to the lender; that would be You!
2.) The Stimulus, can't Stimulate!!
-MYTH! Stimulus is designed to introduce money that will be spent abruptly; roads, highways, bridges, etc; thus keeping employment from declining further. We then wait for consumers to be ready to start spending again! Keep in mind, this is only a temporary gap-filler, NOT a permanent fix. Problem is it isn't working so well due to the polarization of Business Owners reluctant to add employees.
3.) Tax cuts for wealthy people stimulate spending! (First you might want to define wealthy; would we be talking Celebrities, Professional Athletes or Small Business owners? The job creators, taking all the risks, kinda like you and me?)
-MYTH! WSJ can call it a Myth, however, I know when I keep more of my money I don't waste it, I hire more people, buy more stuff; thus support other small business owners, tip more, buy more gifts, give more away...etc. People are simply more of who they are when they have more money...if they are naturally greedy that is what they will be more of, if they are generous they will be more generous!
4.) 66 Cents in value for every TARP dollar spent??
-MYTH! Elizabeth Warren is getting criticized regarding her admonishing of our Treasury Department. It would be horrifying to me if it were true...we are being paid back for a great deal of the TARP, but Stimulus is much worse. LA recently reported every job saved/created was at a cost of an estimated 2 Million. The rebuttal - only 7 Million has been spent...thus costing ONLY $128,444 per job! Don't you feel better? Well California, get to spending and creating those jobs for Americans. It would not take me long to create jobs if Americans gave me 11 Million.
If it weren't so frustrating you could laugh! But then that's coming from someone who literally hurts if Time, Money or Opportunity is wasted!
