Friday, February 6, 2009
What to do with all the Money
There are some who would like the $800,000,000,000 divided by the number of people in the United States, (304,000,000) which would give each person about $2,600. A family of four would get $10,400. That sounds like a great plan. They could then spend the money how they would like to. Some may buy a car. Many would by big TV's. Others would remodel their home. Some may travel. All of this would help the economy. If, however, if that money was distributed that way, all at the same time, inflation would climb to double digits. I don't know how high it will go. The money has to be distributed over a period of time to allow the manufactures to provide product to meet the demand. If the demand is high and the product is not available, the price will surely increase. Money could be distributed the lowest income people first and those making the most money last over a period of six months or so. This would not help those with special interest or special projects like building roads, museums, schools, etc. But I am sure that jobs would be created and people would go back to work. The government needs to be sure that there is no inflation. I am not in favor of the present stimulus package.
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