It seems that economic stimulus checks are once again a hot topic… Back in June, I wrote about Barack Obama’s economic plan and the fact that he was floating the idea of a second round of economic stimulus checks. While talk of another stimulus package cooled for awhile, it’s heating back up…
Apparently Deomcratic lawmakers are now considering another stimulus package, which some economists are saying should total as much as $300B, and happen as soon as November. Fed Chairman Ben Bernanke recently weighed in, saying that a fiscal stimulus package “seems appropriate.”
Bernanke went on to argue that an “ideal package” would not only boost spending, but would also include measures to combat the tight credit situation. Among the measures that have been batted around are an extension of unemployment benefits, loan guarantees, additional support for Fannie Mae and Freddie Mac, tax credits, and another round of stimulus (i.e., tax rebate) checks.
I recognize that this might not be a popular opinion, but I’m not a big fan another round of stimulus checks. In fact, I didn’t really like the first ones. The main reason for this is that the government doesn’t actually have the money to give away. Borrowing from the future to prop up the economy in the short term just doesn’t seem like a sound long-term economic policy.