I see that New York Mayor Bloomberg had much the same reaction to the stimulus package that President Bush signed into law as I did:
NEW YORK (CBS/AP) ― Mayor Michael Bloomberg has unleashed another flurry of jabs on Washington, ridiculing the federal government’s rebate checks as being “like giving a drink to an alcoholic” on Thursday, and said the presidential candidates are looking for easy solutions to complex economic problems.
The billionaire and potential independent presidential candidate also said the nation “has a balance sheet that’s starting to look more and more like a third-world country.”
President Bush signed legislation Wednesday that will result in cash rebates ranging from $300 to $1,200 for more than 130 million people.
The federal checks are the centerpiece of the government’s emergency effort to stimulate the economy, under the theory that most people will spend the money right away.
But Bloomberg does not believe it will do much good. And his harsh words at a news conference Thursday reflect the view among some of his associates that the country’s economic woes present a unique opportunity for him to launch a third-party bid for the White House.
The primary and, presumably, intended effect of the rebates will be to convince voters that Washington is aware of the country’s economic problems and is doing something about it, bolstering incumbents’ reelection bids. The secondary effect will be to make the bottom lines of a few retailers look a little better than they might otherwise have done. The tertiary effect will be to bolster China’s economy, since so many of the goods people purchase with the extra cash will have been made in China.
Is the problem with the U. S. economy that we don’t have enough low-end consumer spending? I don’t believe it. I think the most serious problem with the U. S. economy is that American companies aren’t investing enough in it and are investing the money earned here elsewhere instead.
