Do you feel stimulated?

There is an $825 billion economic stimulus package before Congress. Add the $700 billion that was passed just a few months ago, and we're north of $1.5 trillion!

How does this plus wars on two fronts get paid for? Where is all the money really going? How does a citizen evaluate these expenditures and determine whether they are wise, and whether they will result in turning the prosperity tide?

As I understand it, the purpose of a stimulus to the economy is to increase the flow of money in the system (and not expand the wallets of the CEOs that got us here). That is, people buying and selling and earning and spending. That flow creates a virtuous circle that moves the economy towards robustness. Economic confidence is one measure of this. There are many others - employment, the money supply, inflation rates, etc.

So - how have we done lately?

Almost exactly a year ago, President Bush implemented a tax rebate to "give the economy a shot in the arm". Several months after the "stimulus", we're in a state that most closely resembles the Great Depression. Looks like President Bush missed - he shot the economy in the groin instead...

Then there's the first $350 billion - how many of you have benefited from this? Have any of you noticed an improvement of any kind since the money was distributed?

And what does the new administration wish to do? Go right back and hit our poor economy the groin yet one more time!

Looking at the bill the House just passed, there's basically zero dollars that go directly to people that would spend it in ways that would help money flow. Take a look at it. The only "cash" that goes to people that would actually spend is tax rebates, and we (and our groins) know how effective they are.

I wrote twice (here and here) about how to help the economy by actually giving money to people who can spend it. But it does require more work, than just giving huge sums of money to very few people. Both of these suggestions require a more structured federal involvement, but interestingly, don't require a whole lot of corporate oversight or regulatory action.

I think doing these two things have a better shot of working and cost vastly less than $1.5 trillion. Your comments are welcome.