Yesterday, I used my government-issued $40 voucher to buy an analog to digital TV converter. CVS had them on sale for $49.
We are not cave people; we do have digital access via FIOS on the two main sets. The upstairs TV gets the free analog channels, so we elected not to pay $5 per month for the Verizon set-top box.
I had applied for the voucher online early in January and, sure enough, it came in the mail last week. Using the card at checkout worked like butter. My out-of-pocket cost was $9 and change, yet $49 went into the retail sales machine.
(What a bonus it would have been if the manufacturers of these devices were in America instead of Hong Kong.)
It occurs to me that this Voucher approach could be The Solution. Instead of a bloated "bail-out" bill - which will pour hundreds of billions into the coffers of organizations that will not do anything to help "stimulate" the economy, the Feds should just issue voucher cards to individuals for retail, home improvement and entertainment purchases.
If you think about it, the principle stimulus to the economy is at the consumer level. When consumers are consuming all is right with the world. Spending at this level moves inventory, creates jobs, drives confidence. Before you know it you have a rally in the stock market, banks start lending money, people buy new stuff...
Instead of giving more money to failed banks and social services, the bail-out money needs to go to activities that drive sales of goods, services and real estate.
You want to buy a new car, house, boat? Unka Sam will help. Here's your voucher.
You have 45 days to use it or it goes away. Granted this creates another level of bureacracy to administer the givaways. Maybe a new cabinet secretary - a voucher czar?
Anyhow, I hope all the elected reps who read this blog are paying attention. Please do not pass the bill which is loaded with pork and feathers. We are watching and we will not forget what you do here today.
2 comments:
Now you are thinking like a Republican! The red-staters tried to get a few provisions in the stimulus package that would do pretty much what you propose:
1) A federal income tax deduction for the state sales tax and interest paid to buy a new auto
2)A $15,000 federal income tax deduction if a taxpayer buys a house in 2009
Both these deductions had reasonable exclusions for super high priced cars and houses. Unfortunately both these proposed additions to the stimulus package were defeated in the House pretty much along party line. (Guess which party voted for what.) They have been added back in the Senate but odds are that they will be stripped out in the conference committee. Wait and see.
If the dems take these items out of the bill, I will re-register as a Republican
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