Outside the box stimulus idea. Don't say I didn't warn you.

[Direckshun]

http://www-personal.umich.edu/~mkimb...ck-29may12.pdf

To quote the study's author:

"Provide $2,000-lines of credit to every taxpayer, accessed through a government-issued credit card.

"The interest rate would be 6% per year, the money could be paid back over the course of 10 years, and the credit limit would gradually fall as the economy recovered and the stimulus from this extra borrowing power was no longer needed… most of the funds people borrow using these government-issued credit cards would eventually be repaid—particularly since the government can enforce repayment through payroll deduction. The unemployed would have their payments deferred, but once the economy is moving again, most people would have jobs with paychecks so they could repay… the stimulus effects of Federal Lines of Credit would be at worst only a little smaller than the stimulus from a $2,000 per person tax rebate.

"If 90% or more of everyone eventually repays, a $2,000 per person line of credit would ultimately cost less than $200 per person. With a good deal like that for getting the economy back in gear, maybe even Republicans and Democrats can agree on it."

[Rain Man]

Originally Posted by patteeu

Why don't we just make it $100,000 and get the economy really cooking!

That's a great idea. Heck, if they would give us a million dollars in incentives we could all be millionaires. Imagine that; every American driving luxury cars, taking big vacations, living in mansions. A nation where every single person is a millionaire? That hasn't happened since 1920s Germany, or maybe Zimbabwe in recent years.

[mlyonsd]

Originally Posted by patteeu

Why don't we just make it $100,000 and get the economy really cooking!

Give me $50k and I promise I'll buy a Corvette from GM. They could use the help.

[Amnorix]

Originally Posted by vailpass

It seems it would matter in the context of the article being misleading when saying that if 90% paid back the credit loan the cost would be approx. $200/person.
Not only is the 90% figure HIGHLY unlikely, the author neglects to include the administrative costs of the program which would result in a much higher cost per person.
Given the federal government's track record in dabbling in private sector practices the final administrative costs per person may exceed the $2000 benefit. A fitting, if tragic, exclamation point to another ill advised big government initiative by the obama camp.
We MUST stop trying to fix our problems by throwing money at them.

Yeah, no argument.

[patteeu]

Originally Posted by Rain Man

That's a great idea. Heck, if they would give us a million dollars in incentives we could all be millionaires. Imagine that; every American driving luxury cars, taking big vacations, living in mansions. A nation where every single person is a millionaire? That hasn't happened since 1920s Germany, or maybe Zimbabwe in recent years.

I think too small. This is a much better idea. I'm going to buy a Montana ranch near Bruce Willis with mine.