Friday, January 9, 2009

Something else I don't understand.

Michael Ignatieff said today that he thinks there should be a big tax cut for lower-and-middle income people, as part of the stimulus stuff that is supposed to jump-start the economy. Obama is doing the same thing in the U.S. And I get it, stimulus is needed, and the more money that's out there the more that will be spent, and so forth. And I get the need to start from the bottom up. This plan is certainly better than giving an assload of money to a bunch of banks. But...if I get a big tax rebate, I'm saving it. I'm putting it away in case I get caught short at Christmas, again, and need to get snow tires. I'm hiding it in my mattress in case I am once again in danger of missing a mortgage payment, and bouncing a mortgage cheque like I did this month. I'm not taking it and running out to purchase a plasma TV and a bunch of Chia pets.

So how does this help stimulate the economy? Wouldn't it stimulate the economy much more if you invested the money directly into those industries which employ lower-to-middle income people? Like...infrastructure? Fixing roads and building bridges and so forth - hey, how about fast-tracking light rail for Ottawa? It would create a ton of jobs, and maybe the project could be expanded to such a degree that we would no longer need OC Transpo at all. Again, I'm no economist. But my dad is. OK, forget you blog readers. I'll just go ask him.

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