Wednesday, January 28, 2009

Here's a Simulus Thought...

The new so-called "stimulus" pkg being pushed by BO has already turned into a 3-ring circus where all the elephants are crowding the room to catch the most peanuts being tossed about. (Kind of ironic that most of the elephants are Dems now.)

If they really insist on spending their way out of this recession (depression?) here's a thought...

Since they're treating it like a lottery already, let's turn it into a contest.

Let's take 75% of the so-called stimulus (which they say is $825 Billion but will probably be more like $1.3 Trillion) and give it to each state (based on per capita figures) as a zero-interest long-term Fed loan.


Each State has to give a FULL PUBLICLY AVAILABLE ACCOUNTING of where each and every dime of their portion/allotment goes as it is spent -- real time -- accessible via the Internet so we can watch it as it is spent and know who got what where and why.

After 24 months from doling it out, each State is judged on how many new SUSTAINABLE jobs they have created with the funds they received. The remaining 25% goes out as a reward to the TOP TEN STATES who have created the most permanent jobs in their economy - bonus is in the form of a strings-free grant, not a loan. They get to do whatever they want with the REWARD so long as it is used for the people in their State. Heck, it could even be used as a whopping tax rebate if they so desire. Put it to a vote in their 2010 elections.


Tax income from new jobs created in all States during this "contest" can be used to pay down their Fed. loans (the initial 75%).

Even better... have a second contest to give out another reward for the States who pay down their Fed Stimulus Loan first.

Why Have a STIMULUS CONTEST instead of a FED Stimulus Plan?

1. Each State is unique. They know best what can stimulate their own economies. Some rely more on fishing &/or agriculture. Some rely more on mining, refining resources &/or manufacturing. Some are more knowledge based economies. And still others are more technology based economies.

This would at least ensure each State has a fair share (per capita) of such a huge stimulus budget, and not have the funds funnel only to certain pockets -- ignoring all the others that make up our great nation. And the friendly competition between States could actually become quite fun -- helping States become the best that they can be in areas/fields which they might already excel?

2. With each State getting it's fair share, citizens might actually work in partnership with their States having a clear eye on the WIFM (What's in it for me?) picture. Big BONUSES at the end will sweeten the pot.

3. It keeps the Fed Oversight (read Overhead) Umbrella out of the picture for the most part so they can go to work reducing their own bloated spending -- which IMHO has gotten totally out of control.

4. It moves the funds closer to the people much faster, particularly with a deadline in the picture.

5. It adds responsibility (via the repayment plan) to each State for putting the funds to work in the quickest and most effective manner.

6. It gets EVERYONE involved and with the tight timeline, leaves little room for State bureaucrats to drag their feet, will have tons of companies (existing and potentially new) vying for attention/funds competing to win part of the prize, and lets each State set up how the "repayment" of funds (or grants?) will work for each recipient.

7. The American spirit loves a challenge where there is some type of reward at the end... and I think that spirit has been a bit trampled on in recent decades because most of the rewards for challenges met by American efforts and tax payer dollars have gone to others abroad... not reaching many of us here at home.

Why the FEDS would never go for a Stimulus Contest.

Do I really have to list the reasons here?

You already know why.

So, in the end, be prepared for the BIGGEST old NEW DEAL that will simply result in a RAW DEAL for all future taxpayers -- IMHO.

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