Redistribution not Stimulus
The $1 trillion stimulus bill isn’t a stimulus at all. It is a redistribution of resources to markets and industries the free market has decided not to distribute them to on its own. In short, the market isn’t supporting the goods and services, and thereby functioning, in a manner the government approves of. To correct this anomaly, the government is attempting to re-channel taxpayer money to products and services few, if any, taxpayers want.
If the way to stimulate the economy was to force resources in direct opposition to the flow of free market resources any spending would be theoretically be stimulative. For example, the $860,000 allocation for Frisbee courses in Texas would “stimulate” the Frisbee class industry. It would create more jobs for Frisbee instructors and Frisbee manufacturers. Further, taxpayer dollars used to refurbish offices and apartments of insolvent bankers would certainly stimulate the building industry. The problem is, left to operate on its own; the market has decided not to direct resources in these directions.
To stimulate the economy the government must return to “the mouth of labor the bread it has earned”* and allow the producers and the free market to decide which industries are viable and which are not. Perhaps a better use of taxpayer money would be to use a small portion of funds to educate the president and congress in matters they should have been acquainted with to before they took office namely liberty and free market economics.
God help us!
*Thomas Jefferson’s first inaugural address