So what are we really doing here?

No, it's not a deep philosophical question, I'm actually talking about the 'stimulus bill' that as far as I can tell would put money into the economy at a snail's pace. I keep hearing about "shovel ready" projects, but usually by the time something is "shovel ready" it's already been paid for or financed. The projects in the stimulus all seem like long term goals over the next five to ten YEARS. At the same time the rhetoric about it is fast and furious.

I don't get it.

Thomas Sowell had a good article that addressed EXACTLY what I am talking about.

My favorite point the T.S. makes is that if the President and the Congress REALLY wanted to act quickly and get cash flowing into the market NOW, then they would be cutting taxes. Tax cuts put money into your next pay check. Looking at the shaky nature of the market lately, and the mass amounts of layoffs and hard business conditions, I can't help but think that the BEST thing to do is cut business and personal tax rates by 30% across the board. Not a short term cut, but cuts without an expiration. In addition to that they should cut capital gains taxes by 30% as well. The key of course if for people to see that this is a long term strategy, which means that this is "extra money" that they will have for the long term. That's when companies decide they don't have to lay off as many people. That's when individuals decide to make a larger investment (like a new car). That's when the smart companies would seize an opportunity to gain market share over their competitors and expand rather than contract.

But then of course people complain that you would have to make government cuts to make up the difference.

Two things here. Number one... YEAH!! It would be a great thing if government started cutting and cutting big. Free up some of that cash for the private sector! Number two: lowering capital gains rates has consistently shown to have the direct effect of INCREASING the amount of revenue that comes into the government.

Basically everybody wins. Unless of course the real goal is the one that T.S. points out in his article... POWER and government control.