Republican criticism has increased lately concerning the $787 billion economic stimulus and it’s ineffectiveness in the U.S. economy. Now talk is turning to a second spending stimulus plan.

Nearly five months after Democrats used their majorities in Congress to push through the stimulus, the two-year package has had little impact. Americans have watched the country’s unemployment rate surge to 9.5 percent, and it is expected to go higher.

Although we have been asked to have patience, when you have no job, no money, no food to feed your family or a home to provide shelter, it is difficult to wait and hope for the best. Continually being asked to wait raises doubts that the first stimulus package was implemented properly and about its ability to stimulate the economy. Constitution

The Obama administration expected the U.S. unemployment rate to peak at around 8.0 percent when it pushed through the $787 billion plan. But unemployment could hit 11 percent and the country may need a second stimulus package, according to news reports.

It has been reported that only about $100 billion of the $787 billion has been spent so far, and in the coming months a more rapid pace of funds may be released. It cannot come soon enough!

Warren Buffett, the billionaire founder of Berkshire Hathaway, said in an interview on ABC’s Good Morning America that we have suffered “a shock to the system” from the economic problems in the last quarter of last year but felt we had started to rebound.

“We’re not in a free fall, but we’re not in a recovery either,” he told Good Morning America.

“I think a second one may well be called for. It is not a panacea. A stimulus is the right thing. You hope it doesn’t get watered down,” he said.

“We’re going to come out of this better than ever. The best days of America lie ahead but not next week or next month,” Buffett concluded.

Maybe we need a different approach. Maybe this second stimulus package, if selected, should be given directly to the people: you and me and every other tax-paying American. I’ve shared this before, but perhaps we should consider a simpler approach like the one described in an article in the St. Petersburg Times.

The Business Section asked readers for ideas on “How Would You Fix the Economy?” Here is one of the responses: Piggy Bank

Dear Mr. President,
Please find below my suggestion for fixing America’s economy. Instead of giving billions of dollars to companies that will squander the money on lavish parties and unearned bonuses, use the following plan. You can call it the Patriotic Retirement Plan.

There are about 40 million people over the age of 50 in the work force. Pay them $1 million each severance for early retirement with the following stipulations:

1) They MUST retire. Forty million job openings – Unemployment fixed.
2) They MUST buy a new American CAR. Forty million cars ordered – Auto Industry fixed.
3) They MUST either buy a house or pay off their mortgage – Housing Crisis fixed.

It can’t get any easier than that!

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Comments
  1. Eran says:

    great idea, but do you realize the math of 40 million times 1 million?

  2. FC Kibler says:

    Yes, and we also realize that puts those 40 million people instantly into the 50% tax bracket. But, the point is that the money would have been spent pumping dollars into the economy and creating job openings, rather than putting copious amounts of taxpayer bailout funds into the hands of a few high paid executives at companies like AIG and banks. We are open to suggestions, though and would like to hear yours.

  3. I’ve been saying this since last January, while watching Banks & Corporations receive bailouts. The solution in every recession was to pump money back into the econony for everyone to spend to assure our Consumer Index growth. With this being said, there were also many Tax Incentives to purchase, which kept my sales job alive. I haven’t seen one Tax Incentive in this administration that I believe is simply out of control.
    Your thoughts of 1M Retirement Plan would work, just as the bailout provided to the Auto Industries would have given $67,000 to each Michigan Resident. A sure method of boosting our economy.
    Your posts are appreciated and will be passed to others. Thank you.

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