Or because, you know, maybe it actually wouldn’t be a better idea. I know we have high opinions of ourselves, especially our intelligence, but do we really think we know better how to fix the economy than the people whose jobs depend on figuring it out?
I heard someone on the radio (an “expert”) say that with the last stimulus, people didn’t go out and spend spend spend. They paid off debt or put it in the bank. I guess that’s not what the government wanted us to do, and that’s why they’re not doing it again.
Also, how much spending can one do these days on American-made goods and services?
Although, I happen to have a $6000 budget for the deck I want to build this summer and the saving waiting time is just killing me. If the government sent me $6000 I’d happily spend it on my deck and buy as much American deck material as I could!
You mean like the people at AIG, BoA, or any of the other huge companies the government is bailing out?
Not necessarily. The banks cannot afford to lend unless they are reasonably sure they are lending to credit-worthy potential debtors. Unemployment is rising and corporate revenues are declining; the credit-worthiness of everyone now needs to be called into question and carefully scrutinized. Banks have the same strong interest to hoard their cash as the individuals that are starting to save much more, a high degree of uncertainty about the future. Profit is nice, but ensuring you stay in business is essential.
Your idea works if you are positive that the recipients of the checks will actually spend the money. Giving money to lower-income households, just as an example, might work as they have to eat and pay their bills; it’s doubtful that such folks could afford to save to any significant degree in this economic environment. But if you can’t be sure whether or not the money will be spent, you’re relatively better off having government spend the money, because then at least you will be certain that the money is spent. And as the very limited sample size in this thread shows, at least some people would be unwilling to spend a stimulus check.