The people who need it most- the middle and working class people- will immediately put the money right back into the economy by spending it with retailers for essentials and with corporations for bill payments and debts. All sectors of the economy will benefit from this targeted stimulus.

The GAO report on prospective stimuli strongly states that the most effective targets are lower income families and the best immediate results will be achieved through increased unemployment and food stamp aid.

The argument that direct payments to working class and poor families will just be spent on Chinese imports and will only benefit the economy of China (see Sen. Judd Gregg, R-NH et al) is cruel, an utter fraud and completely ignores the best assessments of economists and social policy experts in and out of government. If Chinese goods are bought, they will be purchased from American retailers who have already paid for these goods, and will directly benefit American businesses who are also hurting fom the tightening of consumer spending.

Posted at January 22, 2008 6:40 PM in response to The Economy Just Keeps Going “Bump!”