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A modest proposal
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Everyone's complaining that the problem with the tax component of the stimulus is that it will be saved rather than spent. But what if that's a feature, rather than a bug?
Think of it this way: the government currently borrows money very, very cheap. Why not distribute the entire thing as tax rebates, payroll tax cuts, unemployment insurance, welfare/disability payments, or Social Security "bonuses"? Perhaps throw in an additional tax credit for paying down debt.
It would be interest rate arbitrage on a national scale. It's certainly no stupider than many of the suggestions I've heard for curing this crisis.
Think of it this way: the government currently borrows money very, very cheap. Why not distribute the entire thing as tax rebates, payroll tax cuts, unemployment insurance, welfare/disability payments, or Social Security "bonuses"? Perhaps throw in an additional tax credit for paying down debt.
It would be interest rate arbitrage on a national scale. It's certainly no stupider than many of the suggestions I've heard for curing this crisis.
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