Bailout Plan Revisited

I do not side with the Republicans on their more tax cuts and the federal government should do nothing stance to fix the economy. However, I think the bailout funds are misdirected since it focuses on shoring up bank capital so that lending will begin again.

Even with the capital injection, the banks won't lend because their credit standards have tightened. This means credit analysts and loan officers will stringently scrutinize prospective borrowers' ability to repay. If borrowers already have debt, whether moderate or sizeable, the banks won't lend the money; thus, defeating the intended effect of providing credit to stimulate the economy. President Obama continues to say that he wants to put more money into the taxpayers' hands, the best way is to inject capital into the taxpayers' accounts. We could use OUR money to reduce debt (which enhances creditworthiness), increase savings (deposits into banks), pay bills (indirect funding to companies) and spend a little (elevate sales throughout the economy).

The worries that taxpayers are not prudent and will spend more than they have are well founded as evidenced by our large debt load and expenditures in excess of means. However, in these times, taxpayers are certainly more concerned with being able to make it through the recession. They will focus on paying bills to be current with creditors and putting food on the table. Moreover, with tighter credit parameters, they hey-days of wanton lending are gone as banks won't just approve any application to build a portfolio given their substantial losses from prior practices.

The federal government should focus on infrastructure projects that build energy-efficient structures (outfitting buildings to save energy, widening/resurfacing major roads to improve mileage and reduce repairs, etc.), promote education to recapture America's once sterling lead in brainpower (contrary to the right's desire for masses of unquestioning dumb-asses in trying to recapture the government) and increase research facilities with incentives and penalties to lower health care costs while producing advanced life-saving technologies or medicine.

Tax cuts can come later once the economy has pulled out of this incredible slump. Tax cuts do NOT help when sales, profits and incomes are plummeting. They will be greatly welcomed and appreciated once everyone, corporations and, especially, taxpayers, become more liquid from profits and incomes.

Republicans need to present better alternatives than their standard soapbox economic model of tax cuts. It takes courage to govern and lead for the greater good than being conservatively selfish for themselves only. Move forward fuckers.