With CONgress and Komrade Obama working on their latest scam stimulus (read communist takeover of America), I thought I would propose some real stimulus measures.
The immediate cause of any recession or depression is that people quit buying goods. Without consumption, there is no reason to produce. With less production, there are less jobs, which result in less consumption, and so forth. Further, it is manufacturing which produces real wealth, and countries which stop producing wealth will obviously become less wealthy. Countries which do not produce the basic necessities of life cannot be considered to be first world countries.
So, my first proposal would be a moratorium on personal income taxes for at least 3 months. No withholding tax from peoples paychecks. The increase in the pockets of working Americans would be immediate, and it would go to the people most likely to buy discretionary goods.
Secondly, I would reduce or eliminate completely the nuisance taxes the government likes so much, like the Federal excise tax on automobile tires.
Next, I would propose a 5 year Federal tax free period for new businesses which manufacture goods within the US, using at least 75% American made materials. It is essential to bring back manufacturing to our own land, and produce real wealth in this country, instead of sending to China.
A moratorium on immigration would also be a good idea, as it is not fair to American workers when jobs are scarce to allow foreigners to suck up the remaining jobs.
Elimination of the tax on interest earned would encourage savings, something which this country badly needs. The capital gains tax on amounts under $100,000 should be eliminated also, as capital gains is tax upon another tax (inflation).
I think banks should be allowed to fail, as deposits are insured up to $100,000 anyway, and poor management should not be rewarded. Depositors of a failed bank should take their hard earned cash to a better managed institution.
A cap on credit card interest is also on my list. Credit card companies charge well over 20% interest for credit card purchases, which is mind boggling. It is hard to see how any Credit card business could go bankrupt at these rates. If there are a large number of defaults, the Credit card industry should be more selective about their clientele.
Putting all these things together would cost less than the CONgress has already committed to, and would not increase the size of government, nor would it promote socialism or worse.
These things would immediately stimulate the economy, not 3,4 or 5 years down the line as the CONgessional Budget Office says the current stimulus plan will.
There are lots of other immediate things which could be done, but these things would be a good start. That is, if people want to remain free, and prosperous.