stimulate this
by Josh Sarpen
Published: July 7, 2008
I received my stimulus check last week, took it out of the envelope and that’s where it is sitting right now. I have not been able to decide what the best destination is for the money, whether it is a bank account, the stock market or Home Depot.
I didn’t support the idea of a stimulus when it was announced, but can’t really finger-point, as the stimulus has received support from both Democratic and Republican members of Congress, along with the encouragement of President Bush. The problem I have with the rebate is that the suggested revenue distribution will not make strides to fight our current recession (it’s time to admit that we are in one). At the root of the recession are soaring prices and a weakening dollar against other currencies, as well as the grim realization that Americans have spent beyond their means. So far I have yet to see how sending people to Wal-Mart to celebrate their financial irresponsibility by filling their shopping cart with imported goods is good medicine for the economy. But I have to admit, the idea is alluring.
But temptation aside, a rebate check will do nothing to cure what lies at the heart of our inflationary woes - the soaring cost of energy. The $152B in funds that the government is willing to “live without” could be invested in developing more energy sources in the United States. A recent solar plant built for the Air Force in Nevada cost approximately $100 million, and will provide for 30 percent of the base’s energy needs. Increased government support for the initial construction would drive additional solar plant projects. A 10-kilowatt wind turbine costs $35,000 - $40,000 according to the Montana Green Power organization. If the government provided one wind turbine to all 133,362 public schools grade K-12, the project would only cost $5.3 billion, a fraction of the tax-stimulus program. This move would also lower the energy bills for our nation’s schools, allowing them to focus on more important objectives.
But as cool as renewable energy is, now is the time to acknowledge that Americans are living far beyond their means and to take appropriate steps toward better financial planning for 2008 and beyond. A recent CBS News poll suggests that half of Americans plan to pay off existing bills with their rebate. Using rebates to pay off debt is a smart action, but runs the risk of establishing a precedent. Citizens (including myself) should not rely on our government to bail us out of a bad financial situation caused by personal overspending. Individual responsible money management is the only way to keep the economy growing at a consistent pace. Perhaps the government should invest money to warn people of the dangers of living beyond their means, which could save additional Americans from foreclosure.
On second thought, when was the last time a government warning influenced your behavior? Bag that idea.
Of course, there are those who plan to spend their stimulus on consumer goods. Unfortunately, their consumption may not benefit our country. If they buy products that are manufactured and imported from other nations, it’s hard to say who is reaping the economic benefits. I would be curious to know what percent of purchases in select categories (especially electronics) helps American companies and workers versus those in other countries.
So here I am, with a check and a decision. What’s a patriot to do?
Fortunately, I have the answer: fill up my tank and hit the road before travel is priced so far out of reach that even a stimulus check can’t buy me some freedom. I consider it my duty to turn the tide of the ever-dipping consumer confidence reading, now at a 16-year-low. So I’ll start at the gas-station convenience store and buy some chips and soda. Then I’ll dump all but the $60 it takes to get back home on made-in-America entertainment: movies, concerts, the local harmonica player. And I’ll walk tall once I get back - knowing that if the economy tanks in the third quarter, well, it ain’t my fault.
—
(email this article or post to social network)
—
July 7th, 2008 at 1:16 pm
Spending your stimulus check on a japanese-made electronic gadget or a Bruce Springsteen concert is exactly the same thing. You’re not stealing from Americans by buying foreign.