Okay... I have thought about what I said... and, I was right. It is not the same thing that got us trouble with subprime mortgages. Lending to people who can't afford to make the payments got us in trouble. Getting money to the people through tax cuts, even refundable tax credits, is not a loan and they won't struggle to repay it. Making more money available through loans is a short-term solution, as we have seen. One day, the money needs repaid and that is when the problems surface.
And, Obama was right... only government can provide the short-term boost necessary to lift us from a recession this deep and this severe. The private sector can't do anything because nobody is out there buying products because of the high unemployement rate and the general sense of insecurity about the future.
Obama's plan is the best option because it gives more people more disposable income and it creates jobs through public works programs. When more people are working and have more disposable income, it gets people spending and allows the private sector to gain some traction to take over.
I'm sure if it were a Bush tax cut, you would have no problem with it. Funny how the policies don't make a difference to you... only which political party they come from.
Best,
Robert A. Franco
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