Stimulate This

According to the experts, much of this country’s wealth – what’s left of it – is concentrated in the hands of relatively few. How do you pry those funds out of the death grip of those gotrocks who have them? They’re hanging on to it for fear they’ll lose it. Of course, if the economy collapses altogether, whatever they have will be worthless. The wealth has to be put into circulation somehow.

What’s needed is a broad-based incentive program for people to spend money. Apparently, lower prices aren’t good enough, nor are appeals to patriotism. There needs to be a bonus for parting with cash. How about tax credits for buying a car, or big home appliances? Is a flat-screen TV a qualifying home appliance? What would be the harm? How about credits for travel or eating out?

The private sector has been doing things like this for decades, maybe centuries, and it works. I just signed up for a program whereby a company gives me airline miles for using my credit card to eat at participating restaurants. Some of my favorites are on the list. I’m already hearing you: a) I shouldn’t be using a credit card, and b) I shouldn’t be eating out in these times. But with the airline miles I might be able to take a nice trip someday – or not. I’m at least thinking about the deal, though – why? Because I’m getting something extra. The bonus in these programs is often unrelated to the product they’re based on. The kicker with the restaurant rewards program is that there’s a time limit to qualify for extra airline miles – if I don’t spend within a certain period, I lose those miles. So there’s both a carrot and a stick.

What about all these executives that got their zillion dollar bonuses when their companies were failing? You can’t take their millions away from them. But is there a way to basically force them to spend it? That’s a penalty you’d think they could live with. Get them to put their money in circulation somehow. Whether we like it or not, much of our economy is based on consumption. Hold guns to their heads and make them consume.

Here’s something to think about. What happens if all of us conspicuous consumers get used to the idea of living with less? Then I guess we’ll be in real economic trouble.

There, now I’ve said it.