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By A Smith (anonymous) | Posted February 06, 2009 at 13:18:40
Ducks, why not just give out stimulus checks then? If the goal isn't to maximize the amount of public infrastructure that gets built (which according to Obama, is vital to the U.S. economy), but rather to promote employment, just give the money to the consumer and let them spend it. That way, the increased consumption will not go to propping up the unproductive steel sector, but to all sectors of the economy.
If you are concerned that people will only spend a portion of the money and save the rest, then just increase the amount given out. This way, you can stimulate spending and also increase national savings. Money saved by individuals will offset additional debt taken on by the government, so in the end, the net new debt will only reflect what the consumer spent.
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