Word is that the Obama economic stimulus plan will include lowering income tax withholding to stimulate the economy. The thinking is that consumers will spend the $40 or so per week they receive on their paychecks, while a big check of $1000 would go to paying down debt.
My reaction to that is seriously negative on a couple of levels. First, consumers would be better off paying down their debt. Second, it suggests an effort to rebuild an economy based on consumer spending. That economic model has already failed, and done so in a major way. Why do we want to rebuild a failed model?
Here we go again: populism wins over good sense.
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