I believe Cains’ theory. Now to say that I believe it doesn’t necessarily put me on the same line as some Cainsians. During the 50’s and 60’s Cainsians thought that they could control the market with the theory and I don’t think that is particularly true. I think that what Cains is saying was that IF the market isn’t able to correct itself that the government can step in and fill in for what the market cannot do itself. This I think is the basis of what Cains said and I think is a very true theory.
I also hope that Obama can get his stimulus package through and passed into law, though I can’t help but think the package that is going through Senate is incorrect. I don’t agree with the tax relief that Republicans have put in for people who buy cars and houses in particular. My belief in what this stimulus should be doing is that it should help provide jobs to people, both short term and long term, and to do it in a way that will better our country for the future. We shouldn’t be creating jobs just for the sake of creating jobs. I actually kind of see this as a time where we can do a lot of good.
I realize the idea of getting tax cuts for car and house buyers is supposed to encourage people to buy these things which in turn is supposed to give people to build these things, but to me there are fundamental flaws here. I would rather see public projects created to build highways, rail, etc that improve the infrastructure the country much the way that FDR did during the great depression. We should be using the money to build schools, parks and clean energy. Things that will improve the lives of average Americans over the long term and that has the greatest impact on doing that.
A few extra people buying a car doesn’t do any of this. Sure it gets the auto industry a little more money, but they are just going to blow it like they did all the money they have earned for the last 50 years. I kind of see the auto industry as I do a homeless man on the corner right now. You give them a bug and they are just going to spend it on crack and alcohol and be back on the corner the next day asking for more.
The only car tax relief I can see giving is for people who buy a car that has more than 40 miles per gallon efficiency. But you notice why THIS isn’t in the bill. The senate is trying to help the American Auto industry more than anyone else, and such a tax break wouldn’t help them at all. In fact, if you limited it to 40 MPG cars, you really are helping those who aren’t doing badly right now. You help those who deserve it. And we all know the senate doesn’t want those who deserve it to get it, even if the free market dictates they should.
As for the housing, I understand wanting to help it. I am more inclined to say that it is better to help those who are defaulting on their loans than to help people get into loans that they can later default on and therefore make matters worse. I don’t want to keep doing the same thing over and over again, and I think this is a learning time for home buyers. In fact, lets go the opposite route. Let’s give another tax break to renters. After all, renters do actually help create jobs. If you rent, you live in an apartmnet. If you live in an apartment, there are likely employees of that apartment, even if it is a lone handeyman, it is an employee. Some have more. My complex has 4 or 5 employees in it and I know many have even more. Not only that apartment living is more environmentally conscious, and in reality is just a smarter form of living.
But we don’t do that. We apparently just want to waste even more money for no reason whatsoever by giving to those who either don’t need it, or will abuse it. It is a shame, because I do think that Barack Obama has very good intentions with his stimulus package. It is really too bad that the senate refuses to have any good intention at all.