What are the fastest ways to inject money into the economy?

[hedgehog]

The problem with building a new energy system based on wind power is that it will take a year or more to get things moving. We need to get money moving through the economy yesterday! Giving it to the banks didn't work - they just stuck it somewhere and jacked the interest rates to protect their stock holders.

Here are some suggestions:

Immediate grants to anyone who installs an energy efficient furnace, new windows, insulates the house, even for weatherstripping existing windows!
On the positive side, this saves energy. On the negative side, this will take time to get money out there and will bring every scam artist in the country out of the woodwork.

Expand Americorps big time and do things like hiring people to paint houses for retired people, shovel walks, provide daycare, whatever needs doing.,
On the plus side - outs people to work. On the negative, maybe puts other people out of work and there is always the argument that some people don't deserve to have their house painted, walks shoveled, etc. Plus it would still take time to ramp up the program.

Raise the minimum wage to $15/hr by Feb1, 2009.
Plus side: boy, would that put money in the pockets of people willing to spend it! Minus side: Prices would go up faster than wages (wait a minute - isn't that what we've been living with for years now anyways?) Also, some families would find that one bread winner was sufficient for their needs, so a certain number of people would drop out of the work force, meaning wages would be forced up for those remaining.... Plus some jobs would be lost. After all, who can afford to pay someone $15 an hour to stand on the corner holding an advertising sign?

Raise the Social Security checks starting in February.
See above for pluses and minuses. Some of those 75 year olds are really lazy and will quit their jobs today if they had the money!

Buy up all outstanding student loan and drop the interest rates to cover handling fees. Issue student loans to existing students at cost.

What are your suggestions?

[elleng]

1. Cash to teenagers.

.

[jwirr]

2. Your ideas are good. On raising social security I would raise SSI

which puts the money in the hands of the poorest elderly and persons who are disabled. Food stamps should be raised and the upper limit of eligibility raised. I really like the student loan idea. We need to keep the young moving toward a better future or we are all going to lose.

[lunatica]

3. All of the above, but for a very quick boost

is to force the credit card companies to reduce their monthly payments to a very low minimum payment and interest rate, even if it's only for a temporary time of a year or two. So people who now have to pay $200 to $400 minimum payments for a single credit card can pay $50 or less. The extra money will be used. Most people can't hoard their money, but making it go further means they can afford to eat better food or buy some much needed clothes for the kids that keep growing out of their clothes or be able to buy that tire for the car, or even get a tune-up or fix the car. The injection of money back into the economy would be immediate.

[SoCalDem]

31. Instead of giving money to BANKS, issue "credit card/mortgage coupons" to the PEOPLE

The people "redeem" them by sending them to banks for cancellation of debt (as well as cancellation of the damned cards too)...End result?

no more debt for the people, and the banks still get the money when they present the "coupons" to the govt.

[Lex]

4. Start an infrastructure rebuilding works project right away.

Like the WPA in the 1930's.

Obama said this is a top priority and will fast-track it.

[Ishoutandscream2]

7. Agreed, And I was so happy to hear Obama announce this

This was exactly what I was looking for. A breath of fresh air, that's for sure.

[sandyd921]

24. I agree, plus

this has the benefit of long term investment. But I sure do hope that mass transit will be a significant part of the infrastructure investments. I worry that once again this country is missing the boat on mass transit and will repeat the mistake of putting all our apples into building and maintaining highways (not that we do not also need to repair the existing highways and bridges).

[Vincardog]

5. Ask every State for a list of their worst 100 bridges. Fund their reconstruction starting next week,

Ask every city with a population of more than 250,000 what their most immediate road construction/repairer problem is and fund it.

ASk every city with a population less than 250,000 what is there worst public building and fund it's repairer/replacement starting next week.

Only fund the projects that employ US Citizens and pay living wages to everyone.

[hedgehog]

9. I assume that that's on the list of things to be done by 9AM January 21,

but it does take time to get people on payroll. I think aiming for higher Social Security and SSI payments plus some sort of loan forgiveness for student loans held by the government can be done quickly.

[Tansy_Gold]

21. There's a minor problem with that

What do the people spend their money on after they've earned it building the bridges and repairing the roads?

If they spend it on cheap plastic crap from China, nothing is accomplished.

If it all goes to pay down existing debt, nothing is accomplished.

The road and bridge projects will come to an end eventually. What you have to create is a self-sustaining economy. That means manufacturing jobs. Without those, you're at a dead end.



Tansy Gold

[Vincardog]

26. Studies show that money earned locally circulate 2.5 times Thur the local economy before it leaves

The question was "What can we do NOW to inject money into our economy".
If the way people spend their money is a problem; it does not matter if they earn it building bridges or building windmills.

[dysfunctional press]

51. exactly right- and this isn't the 1930's anymore, either...

due to technological advances in labor-saving equipment/methods, bigger projects require MUCH less actual manpower than during the depression days...and they get done faster.

[dysfunctional press]

52. well- that'll do wonders for traffic congestion...

plus- construction projects require fewer actual workers than they did in the 1930's- and they usually get done faster as well.

[CTyankee]

53. According to our governor, we already have that list together.

She says we have "shovel ready" projects just waiting for the infusion of federal money to hire the workers and start. And CT surely is not the only state to have done this ahead of that Gov's conference with PE Obama. The states that are fastest on the ball will be the ones that will get the money, it seems to me. Even tho we have a Republican governor, I believe Obama when he says he won't give out the money based on partisan politics. In fact, it would be foolish for him not to be nonpartisan about it. But I'll wager the blue states will have more "smarts" with this than the red states...

[TomInTib]

6. Give it to me.

I can disburse (lose, give away) cash faster than any inept financial institution.

[Tansy_Gold]

8. Jobs.

Jobs and more jobs.

Manufacturing jobs that produce products that people use.

What has killed our economy is the transfer of production jobs to cheaper-wage markets. Working people lose jobs and buying power, but stockholders continue to reap the benefits.

Paying people a living wage to make things is the quickest way to "inject" money into the economy. Prices for some things will go up, but when everyone -- EVERYONE -- has additional buying power, it won't matter.



Tansy Gold, expecting flames

[hedgehog]

12. The arguement is that raising wages will cause inflation, and that

prices will rise faster than wages. To which I say, So? The rates I'm paying on my existing debt are at the legal limit already, and prices have been rising faster than wages for years! i could use a little inflation!

[JVS]

17. That inflation depends not only on aggregate earnings, it depends on aggregate production as well.

If we start paying people more for the same amount of work, it will be inflation.

If you pay more for more production, this effect is lessened or perhaps even deleted.

Play with the inflation calculator and you'll notice that during the major industrialization around 1900, we did not have inflation because the productivity gain was higher than the wage gain.

[hedgehog]

19. Hasn't productivity per worker been steadily rising for years?

I think we're having a serious unrecognized problem with deflation.

[JVS]

29. Are you getting more for your dollar? If not, then it isn't deflation

[itsrobert]

10. "based on wind"

No, solar, not wind.

[JVS]

11. Announce an official plan to inflate the currency by 100%

People will fall all over themselves trying to spend it before it is only worth half as much.

[Warpy]

13. Expanding Americorps is a great idea

and is probably the first thing that should be done.

After all, if people had money to hire people for most of those services, they'd do it already. People are tapped out. Even if they have a house with a late model car in the driveway, you can bet they're strapped paying them off while paying inflated grocery prices.

Raising the minimum wage is essential. While there will be a short decrease in employment and a short rise in prices, both those things will soon ease because more people earning a decent wage means more people demanding goods and services. What business owners are watching walk out the door in wages will quickly start walking in the door as increased business. It happens every time. The proof? When was the last time you heard of a business group screaming to roll back a minimum wage increase six months after it happened?

Funding this the first is also necessary. The Pentagon budget has to be cut. There is simply no way to maintain an imperial military that exists as a welfare program for multinational corporations. We need to defend ourselves. We don't need to run the planet. That's what we have the UN for.

Taxes on the wealthy need to be raised with confiscatory taxes on the wealthiest with a 10 year sunset clause, at which time the top marginal rate will be 70% on the most egregious thieves.

Executive salaries have to be capped as a multiple of the lowest wage within the company. Corporate net profits need to be taxed.

Most of all, Reaganism in its entirety needs to be bumped off and buried.

Our country is unhealthy right now. These ideas might help it regain some semblance of health. Doing more of the same will destroy it.

[hedgehog]

16. How about paying states to provide Home Health care aids?

It'll take time to vet new hires, but a lot of states like my own New York are strapped for cash and home health aids may be getting the ax.

[Warpy]

40. There's a lot of absolutely vital work that is going undone

and it's not restricted to home health aides, although the need there is acute.

Americorps could provide a lot of workers to do these jobs.

But yes, don't expect anything to start up until next summer, at the very earliest.

[hedgehog]

47. I think there are people being paid by the states who are facing lay-off now

because the states have to balance their budgets., These are people in place with jobs that need to be done and need to be saved., A transfer of funds to the states for these purposes could be don equickly., Of course, some rules would be required to ensure that the money goes to preserve jobs, not cut taxes!

[Coyote_Bandit]

14. Short term quick fixes

Won't fix anything.

There are only a few things required to insure that we have a long term stable and healthy economy:
(1) Rebuild our manufacturing base;
(2) Rebuild the infrastructure required to support it;
(3) Change our attitude toward work so that blue collar and trade work is valued;
(4) Change our attitude toward education and revamp our educational system so that (a) students are directed towards careers in which they have an interest and aptitude and for which there is need for workers and (b) attach incentives (and penalties) to measure the long-term success of educational institutions as measured by alumni work performance;
(5) Develop healthy attitudes and lifestyles where personal value is not dependent upon either consumption of products and/or a sense of dominion over others;
(6) Value productivity more than wealth creation; and
(7) Recognize the implications of and treat globalization efforts for what they are - an attempt to implement a single worldwide standard of living.

Most of the items on this list have more to do with attitudes than with action. Personally I do not think we currently have the personal or political will to do what is necessary to correct our economic problems.

I have little interest in funding a short term bandaid that fails to address the underlying issues.

[hedgehog]

18. My worry is that unless we get some short term quick fixes, a lot of

people are going to be really hurting by March. We do need to address the underlying issues, but we're also up to our ass in alligators!

[Coyote_Bandit]

30. I have no problem with

measures that help to stabalize our economy and our markets - provided any funding is handled as an investment (i.e., loan) rather than a transfer (i.e., gift).

There are a lot of people that have been ass deep in alligators and hurting for a long time. For them, there is no quick fix. For some of these folks there is no fix.

[dipsydoodle]

15. Aggregate consumer spending.

.

[Swamp Rat]

20. Bailout the American People

[lunatica]

22. using a scalpel like a veto pen on a line by line basis

Cutting the military budget first. We already have enough weapons and fire power to kill everyone on the planet so start with the weapons that are on the drawing board stage as well as those that are going nowhere like the the star wars program. Just these two would mean billions of dollars that can be used better

[hedgehog]

34. I think that's more a long range adjustment. The last thing we need

right now is more lay-offs!

[lunatica]

38. The idea behind using a scalpel is that it doesn't cut the whole program

But cuts the fat. One way of cutting the fat is to refuse to pay more for a hammer than the price they can pay at hardware stores. Same for toilets, widgets, etc. A scalpel will save BILLIONS and few people will be laid off.

[Greyhound]

45. Thankfully, that is unconstitutional. One of the few good calls out of the SCOTUS. n/t

[leftofthedial]

23. imprison every repuke in America immediately

and hold them indefinitely as the enemy combatant enemies of America that they are.

the country will right itself within a month.

[leftofthedial]

32. I'm not joking.

arrest them, seize their assets.

keep them completely out of the loop throughout our government, our economy, our local school boards, the management of the local 7-11--everywhere.

Within a month, the economy would stabilize and all the people not in jail would be much better off.

[mrreowwr_kittty]

46. I'll work as a prison guard over them for $15 an hour!

:evilgrin:

[stray cat]

25. If given a tax rebate ie extra money I would put it in the bank - not stimulate the economy

[demwing]

27. Credit Card Debt Amnesty for low Income Wage Earners

And an elimination, or at least a restructuring, of the high interest credit card system.

Hit the button too soon...

The amnesty (IOW - more liberal personal bankruptcy laws) for low income CC debters would make those borowers less appealing to predatory lenders, who count on these folks to pay too high interest rates till the debt has actually been overpaid, and then default on the loan balances, creating tax write offs.

Instantly puts cash back in the wage earners pocket without increasing costs to employers.

BTW - I think you can't double minimum wages so quickly without creating havoc. Too fast, too soon. As a long term goal, met through incremental changes, its more than a want, its a need, but not with such haste.

[Andy823]

41. I could go for "restructuring"

But NOT elimination of their debt. Way to many people have abused their credit cards, and way to many institutions have not said "NO" when these same people apply for "more" cards. I know a couple who lived way above their means on credit cards. When one was maxed out they applied for another, then they would pay one down using another card, pretty soon they were up to their eyeballs in debt and couldn't make the minimum payments on all their cards. They got one of those "consolidated" loans so they had only one payment, but after a few months they applied for "more" cards and then couldn't make the payments on the consolidated loan. They had to borrow money from my mother in law, the man had worked for my wife's family for years so she loaned him the money. He got to where he wasn't paying her back on time so we had to talk with him about it and found out he was once again maxing out his "new" credit cards. I have no sympathy for people that do this, none at all. I say ban them from credit cards, restructure their payments and make them pay back what they owe, not eliminate their debt. If they eliminate their debt only, they will be right back in the same mess within a couple of years.

I remember when credit card companies would not loan you money if you already had to much debt outstanding, and that's the way it should be again.

[hedgehog]

48. The recovery effort will require that we be more concerned about the economy in general

than the particular lay-abouts that everyone knows. Inevitably,. we will be aiding the undeserving poor!

[undeterred]

28. Write me a big check.

[notadmblnd]

33. cut interest rates on mortages and credit cards by at least half

credit cards could even be cut further. 30% interest on cards is outrageous.

[hedgehog]

36. According to my Dad., things went to hell when Nixon repealed the

usury laws. I think technically what he did was federalize credit cards as interstate commerce so state usury laws became invalid. Once interest rates hit a certain point, people end up paying the interest every month without paying off the principal. Toss in stagnant wages and rising prices and you have the mess we see now!

[KG]

35. public works projects.

[hedgehog]

37. Again,. needed for many reasons, but probabaly will take a year to get moving.

[dysfunctional press]

55. a nuclear reactor in every state. all using the same design/specs.

nt

[Lars39]

39. Making sure that *everyone* had enough to eat.

Dunno how it would work, but it needs to happen asap.

[kentuck]

42. Foodstamps.

That should be the first thing they do.

[FirstLight]

43. "buy up all outstanding Student Loans..."

From your lips to god and obama's ears!

One of THE biggest reasons I cannot finish my degree and make a living wage is the inability to qualify for any assistance, even grants, because my loan from community college went into default...

and my hours just dropped to 8 per week, not helpful!


Biggest need is to get us to work, I like the Americorps idea, I was hoping to get into the coming teacher-corps idea that is on Obama's transition page...
The reason people are losing their jobs is NOT because the employers can't "borrow" to make payroll...the problem is that nobody is able to do more than basic survival, so much of the service and goods industries go belly up...

Let's figure out how to stop that spiral, without having to just tear it all down and re-build from the ashes

[carlyhippy]

44. I could handle 15.00 an hour! That is more than I make now

1% interest on all student loans, and lower tuition at all colleges would be on my wish list!

[hedgehog]

49. I just pulled that number out of the air as a living wage.

[Mari333]

50. Stop The Occupations of Iraq and Afghanistan. n/t

[dysfunctional press]

54. start developing/building a high-speed rail network, based on regional hub-and-spoke systems...

like those the airlines use- and by doing so, create a coast-to-coast network for moving people and some goods.
and also- nationalize the u.s. auto industry to produce electric and biodiesel-hybrid vehicles, as well as the cars/equipment for the rail networks.
build factories to manufacture equipment for solar and wind power generation.

start building a nuclear reactor in each and every state.

[hedgehog]

56. Again, itmes to be considered but it will take some time before the designs are ready to go.

Even to re-tool auto plants takes time. We need an injection of cash to jobs this winter.

[dysfunctional press]

61. accept the fact that nothing meaningful is going to be done this winter-

because it won't be.
yes- it takes time to set things up for long-lasting change. it makes no sense to just throw money willy-nilly at quickie fixes that won't lead to long-term financial health.
without a serious manufacturing sector, we're doomed.

[leftchick]

57. stop tax breaks for corporations and the wealthy

.

[quaker bill]

58. I will take a direct deposit n/t

and I promise to spend it building a small business.

[MazeRat7]

59. Jobs and health care. n/t

[dysfunctional press]

60. minimum wage of $15/hr by feb- and you think only "some" jobs will be lost?

it would cause A LOT of small businesses to close up shop for good.

i thought you wanted something that would do IMMEDIATE good. a $15 minimum wage won't do it- unless you make it illegal for employers to: fire anyone, or cut them to part-time, or close their businesses.

[arcadian]

62. Throw it out of helicopters

:rofl: