Published: Tuesday, February 3, 2009
STIMULUS BILL
Gift cards would create spending
The problem with the last economic stimulus package was that most people probably did what my wife and I did. We put it in the bank for a rainy day. The package is supposed to be spent to stimulate the economy. What the heck, splurge! After all, it's like found money.
I would like to suggest a new approach for President Obama or whoever designs these things. First, figure out how long you want the stimulus to work. As an example, say you want it to have an effect over 90 days, a full economic quarter. Instead of sending checks from the U.S. Treasury, you send a mix of prepaid credit cards to one-third of the people and have them expire in 30 days. That is critical. They have to have an expiration date. In other words, spend it or lose it. They can't be used for cash, and they can't be used for deposit to a bank account. You send out the second group in time to get in the hands of the second/third about the time the first cards will expire. The third set goes out about the time the second set is to expire.
You now have a full quarter of spending. Stores are happy; they hire people to handle the surge in sales; they buy more inventory; and more people are working, earning more money, buying cars and all sorts of goods and the economy is on its way to recovery, and the stock market goes up and investors start buying stocks and mutual funds again.
As a bonus, the cards could can be collector items, with the picture of the First Family on them and the date, "2009," with the words, "I'm helping to stimulate the economy!"
Thomas W. Green
Everett
I would like to suggest a new approach for President Obama or whoever designs these things. First, figure out how long you want the stimulus to work. As an example, say you want it to have an effect over 90 days, a full economic quarter. Instead of sending checks from the U.S. Treasury, you send a mix of prepaid credit cards to one-third of the people and have them expire in 30 days. That is critical. They have to have an expiration date. In other words, spend it or lose it. They can't be used for cash, and they can't be used for deposit to a bank account. You send out the second group in time to get in the hands of the second/third about the time the first cards will expire. The third set goes out about the time the second set is to expire.
You now have a full quarter of spending. Stores are happy; they hire people to handle the surge in sales; they buy more inventory; and more people are working, earning more money, buying cars and all sorts of goods and the economy is on its way to recovery, and the stock market goes up and investors start buying stocks and mutual funds again.
As a bonus, the cards could can be collector items, with the picture of the First Family on them and the date, "2009," with the words, "I'm helping to stimulate the economy!"
Thomas W. Green
Everett
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