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So, the Democrats are discussing having yet another stimulus package to help us through this crisis. We have come a long way from when stimulus packages were just a gimmick when Pres. George W. Bush had one in his first year in office.
However, I think that this is a bad idea.
I’m sure that if you’ve read this far you’re probably trying to figure out if I’ve gone completely mad! I mean, why wouldn’t I want another stimulus package?
Habit Forming
Because every time the government does this, it’s teaching people that in hard times they should depend on the government. If you would, it’s reinforcing the idea that government is the solution, not the problem.
When government gives the American people money, they don’t make the connection that it’s really their tax dollars coming back. They don’t ask, “If you don’t really need this, why are you taking it away from me?” They simply think that the government is giving them money. And they like it.
Real Change
If they really wanted to make a difference, they would abolish the current tax code, or at least get rid of automatic withdrawals, and then they wouldn’t have to cut checks and people would just see lower tax bills.
Imagine a scenario where we had a national sales tax or VAT tax rather than an income tax. The economy slows down, so the nation lowers the sales tax, and therefore it’s cheaper to buy things. More people buy things and the government gets more money.
Instead, we have this insane system that takes money out of your check every week (unless you’re under a certain threshold, at which you don’t pay anyway) and then they have to give it back when times get tough.
Smoke and Mirrors
But a new system wouldn’t let government look like the cavalry and wouldn’t build your dependence on them. We couldn’t have that, could we?
