Here's an observation for folks to chew on. Voices in Congress of both political parties and, yes, even the president seem agreed on the idea that the best way to resuscitate our gasping economy is to pump some energy into the consumer market with a quick infusion of tax rebate cash. There's disagreement, of course, as to the size and design specifics of the planned transfusion, but the central point is a given: consumer spending will be our salvation. I guess you could call it "Trickle Out Economics".I'm not sure it's going to work in practical terms, but I'm not going to argue the point. As my very own trustee of creditors will tell you, I'm no financial genius. But there's an assumption at work here that is seemingly unquestioned and that strikes me as just a bit strange.
The assumption is that the money placed in consumer's hands will spread through the economy and revive it. OK, but the other shadowy half of that assumption is that the same money in the government's charge wouldn't do anything of the kind.
Why is that?
