It an election year, and the economy is (still) in the crapper. So what’s the solution? Politicians think they should give everybody a check to make the economy better. They think this, largely, because people like getting money “for nothing”, and the politicians want people to think well of them in November.
Why is this not only not going to work, but actually downright stupid? The economy doesn’t need worthless dollars being recirculated. Not collecting the taxes in the first place would be much more cost-effective than collecting them then returning them, but doesn’t make the voting public as happy as getting a check in the mail. What the economy really needs is more good jobs. If you hand Joe Average a check to “increase consumer spending”, Joe is going to go to Wal-Mart and blow it on junk he doesn’t need that was made by foreign workers. Translation: a large chunk of that bonus cash will flee our country, putting us in worse shape down the road. Not to mention that our government, which is already deficit-spending, will itself go deeper into debt to foreign countries. No sir, a tax refund isn’t what the economy needs. It’s what politicians need for a short-term boost in their ratings. Tomorrow, after all, may well be somebody else’s problem.