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If At First You Don’t Succeed… |
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Thursday, 23 October 2008 |
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By Christian Hill
Try, try again? It looks like that is the governments approach to getting the economy going again. With the failure of the first round of stimulus checks to jump start spending, Ben Bernanke said on Monday that considering a new fiscal stimulus plan is “appropriate”.
Given the current state of the market, I have no idea how this could possibly help anyone. The first attempt failed. Sure, it provided a short-term infusion into the economy, but as soon as all the checks were cashed, spending stopped and we were right back where we started. Why would this time be any different?
Even if the legislation was passed quickly, the checks probably wouldn't begin arriving for most Americans until after the Christmas shopping season, so it couldn't help retailers meet year-end numbers. Any checks issued after the holidays would more than likely go to pay off the credit card debt incurred buying the Christmas presents, and wouldn't directly hit cash registers.
So how would this second stimulus check help turn the economy around? It wouldn't, just like the first try didn't. Like Einstein said, “Insanity is doing the same thing over and over again and expecting different results.”
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