Can a check for $600 stimulate our economy? Ask anyone what they plan on doing with their $600 check and most will answer "Pay down debt" or "pay the heat bill". No one is planning a vacation, or purchasing an HD television. The economy needs jobs. Good paying jobs. Guest workers on H1B visas need to be sent home. Thank you for your services, but our nation is suffering and we must get our citizens back to work.
Put an end to importation of foreign labor until such time warrants. Tax laws must change too. Companies should be fined when they ship their operations abroad. Keep Americans working. Keep money in their pockets and the economy will be humming.
The Economic Populist
Speak Your Mind 2 Cents at a Time
Comments
absolutes
I don't think just stopping all guest worker Visas or immigration is realistic. That said, stopping the guest worker Visas increases (h-1b) and passing reforms like the Grassley-Durbin S.1035 would go a long way in helping the US middle class.
It appears more and more economists are starting to discuss the effects of globalization on the overall economy, beyond jobs.
Stop Job Offshoring & Worker Importation
This commentary is absolutely correct.
Seriously now. There's no shortage of American workers. See the job losses at The Death of the Middle Class on my site. Stunning.
Nationally we've lost 21.1% of mfg jobs since the Mar98 peak. Colorado Springs has lost 37.8% of mfg jobs since Jan 01.
Nationally we've lost 17.4% of IT jobs since the Mar01 peak. Colorado Springs has lost 47.2% of IT jobs since Jan 01.
The 1991 Advanced Technology Products "Trade" Balance was +$38.4B.
In 2007 (Nov06-Oct07) it's -$50.7B !!! From plus to a big minus.
We're talking bloodbath here in the face of an exponentially-increasing (literally) and unsustainable "trade" deficit.
I put "trade" in quotes because it's actually "transfer of the factors of production", "transfer of jobs", labor arbitrage ... any of these are better descriptions of reality.
Dr. Powell
Welcome to the site and I hope you register and consider posting articles (blogs). We'd love to have your input and cross posting to other people's work, blogs, papers is strongly encouraged. We want more regular folks to become economically literate so they may more accurate demand our government change policy and not be sucked into rhetoric such as tax cuts solve everything.
Other readers, Dr. Powell's website he refers to is:
Exponential Improvement.com where it appears he has a lot of detailed work available.
Right on target
This post is completely correct. A $300 (or $600 or even $1000) check is not going to help at all - people aren't going to go on a spending spree when they get their check. Most people will pay off bills, some will put it away in the bank and a few will spend like there's no tomorrow. Many of the people who could really use the money won't even get it (they don't make enough which, apparently, means they aren't good spenders so they shouldn't get it anyway!).
Realistically, what does $300 get you? A couple of months of cable and internet (if you can afford it)? 2 months for your heating bill (if you're lucky)? A couple of minimum payments on a credit card? A week or two worth of rent? How about a couple of tanks of gas to get to work? A car payment?
Let's face it - the best way to stimulate the economy is to get people jobs. The Government is using the 'Give a man a fish' policy, when they should be using the 'Teach a man to fish' policy. Stop the outsourcing, stop bringing people in to take jobs, encourage investment in the US by companies and individuals. One way to help this would be to use reciprocal trade policies. Many countries hinder the trade of goods, services and people into their country while the US opens their borders. By doing the same to them, our exports would increase, our imports would decrease, and the trade imbalance would be more level. This wouldn't cure everything of course, but it would be a good start. I often wonder why the world is flat only in Washington?