So why aren't people up in arms over this pending handout?

I have to laugh a little bit as I sit here and think of the Lewis Black stand-up comedy special that I watched again recently.  It was re-run on Comedy Central, from their 'stash' (so it was unrated and uncensored for the most part).  Funny stuff.  Including a rant about how when both the Republicans and Democrats both come together in unison and work cooperatively we "Americans" are about to be doubly f---ed (or words to equivalent).

Anyway, he is about to be proven right again as the GOP (mostly via President Bush) is rushing to work with their 'friends' on the other side (the Democrats) to rush through a stimulus package in the form of a tax rebate (or prebate as some would call it).  Both sides are doing their best to get this stimulus package together to keep the U.S. economy from hitting the skids and to keep the U.S. economy from going into (or going deeper into) a recession.

Now please don't get me wrong as I really don't want to seem as if I'm not in favor of doing something to help the economy.  I am in favor of doing something, but I'm not sure that this $150 billion (give or take) semi-handout is the best approach.  $150 billion is a drop in the bucket really, but before I make up my own mind about whether or not that money will be useful as a stimulus to the economy I need to know what the longer term impact is.  Will we get tax prebates and then wind up not getting tax refunds next year?  Oh that would be great.  NOT!!!!  Though I've been told many times that I shouldn't let the government have an interest free loan of my tax money, I'm a normal U.S. citizen that looks forward to a tax refund each year and not having one means not having money that I would spend to make a decent sized purchase for myself or my family.

If there is no direct impact on future taxes, then where did the money come from?  Was it magically created?  The fed blinked, the money was created and now we get to spend it?!?!  We all know that wasn't really the case though, right?

The fed blinked alright, that is for sure.  They're still blinking and as some would say 'smarting' over the damage that has been done (by them) to the U.S. economy because of the fed's actions to deflate the housing market and take the air out of balloon there.  They did that job only too well and thanks to having popped that bubble, they basically killed the economy at the same time.

Now the fed is talking up the idea of a stimulus package that would be quick and over in a relatively short period of time and of course the pandering politicians in D.C. are doing their best to offer up handouts with the idea that the tax payers that receive the money will rush right out and spend it.

Here's where I have to ask why people aren't up in arms over the idea though -- where will the money really go?  A few hundred dollars per person, or per family, will go where?  LCD HDTVs?  Down payments for new cars?  A tank full of heating oil?  Perhaps a tank full of propane gas to keep furnaces and ovens running over the next few months?   All relatively worthy uses for the money, but in the end where will that money really wind up?

Think hard people.  Think very hard.  Where does virtually all money wind up?

Let me spell it out clearly for you.  In the hands of the corporations.  In the hands of the wealthy.  Yeah, we're going to take their money (by not giving them these handouts and by not reducing their tax burdens) and redistribute it out to the poor and middle class.  Great idea.  And then those people will run out and purchase goods and services that will profit those same people in the end.

This is nothing more than corporate welfare.  We're going to shore up the revenue streams for businesses.  Great idea.  Lets not let the market correct itself, and lets not let the market determine how many jobs might not be needed.  Instead, lets artificially stimulate the economy and lets confuse the businesses about just how much production capacity they need to keep.  Lets confuse them about how many employees they need to keep on the payroll.  And lets confuse them more by having people snap up goods to put in their homes just before those same people go into work and find that they no longer have jobs to go to.  That'll go over really well if some of the people that gets these handouts borrow money to make even bigger purchases with (and then have to declare bankruptcy because they don't have the income to pay for those purchases later).

For many reasons I wonder why there's not more concern over these apparently coming handouts.  It seems to me that there are a number of reasons to think that this bunch of handouts isn't going to be a good thing.  If others think the same and wind up saving the money rather than spending it then the stimulus will never happen.  The money will sit in the bank (or equivalent thereof) and do little or no good.

So why is this stimulus package supposed to be a good thing??