January 31, 2010

~~Tarp money for the people??

By Timothy Stull (http://www.fresh-start.co)

Lets get one thing straight, I am a free market economist. I do believe in very little Gov’t intervention when it comes to private sector of the economy. I also believe that all economic problems have a way of curing themselves over time ~ the the macro economic cycles always bring balance back. However, I do think that the one thing that TARP proved is that a cash infusion that is managed well, can bring enough shock  to clear out major economic crisis. The banks have already paid back 75% of the TARP $$…one year after they took it. Did they do what they were supposed to do with it? Uhh no. Did it fix all of their problems and get their business model functioning correctly? Yes it did. It gave the boost they needed. I do think a proper similar stimulus could work for the people. Distributing certain sums of cash based on critical need would be base level idea. Critical needs equate to mortgage payments, car payments, food, health care. Once people are able to pay for the basic staples in life, they can begin to look up and move on. Right now there are just too many folks trying to get traction. We need to get them beyond that point and turn them into viable consumers once again. Consumers = more product demand = more jobs = more income = more spending = consumption. It is a track cycle that can accelerate very quickly on an exponential level. What about the pay back? Simply do it over a 5 year term ~ all monies deducted direct from payroll or a bank account. I know it sounds like a risky proposition. However, no risk = no reward.

Be Sociable, Share!

Comments are closed.