I am still trying to wrap my head around the wisdom behind the seemingly inevitable economic stimulus package. The administration and many leaders in Congress are proposing a combination of tax cuts and rebates to the tune of $150 billion dollars!?! Oh, so there’s a tax surplus in Washington of $150,000,000,000? I knew I was paying too much in taxes! Wait…what about the $9 trillion dollar national debt? Can the government really afford this even if it does hope to get some of the money back? ¹ Well, I am sure that the U.S. Treasury will take care of things just like they always do — by simply printing more money. Who cares about inflation when it feels good, right? Our cultural values are all about instant gratification and $1,600 per family or $800 for individuals will buy a lot of big screen televisions; thus 1) averting the impending entertainment drought caused by millions of analog TV’s being rendered useless by the FCC mandate that broadcasters go fully digital in 2009, and 2) propping up the profits of overseas electronics manufacturers (buy stock in LG, Samsung, Sony, and Vizio now). Remember, we have a global economy, so think of the stimulus package as being for the Chinese factory worker as much as it is for the average American.

However, if you already have a shiny new HDTV hanging on the wall or simply must have one before the Superbowl, then below are some suggestions for other things you can do with your stimulus package (when it finally arrives):

1. Pay off your debt (Americans carry nearly $10,000 in credit card debt)
2. Put it in savings (Americans save -0.5% of their disposable income)
3. Give it back (annual interest on national debt is over $2,755 per taxpayer ²)

Of course, keep in mind that improving your personal long term financial outlook goes against the government’s plan, which revolves around the so called “multiplier effect.” This is the economic theory “that an initial spending rise can lead to even greater increase in national income.” In other words, by dangling a carrot the government ³ hopes that its citizens will take a bite and continue to mirror its own irresponsible spending habits. No wonder we have such a hard time saying “no” to ourselves.

¹ If I recall correctly, the $200/$400 Technically speaking the $300/$500/$600 tax rebates of 2001 were deducted from any tax refunds that appeared on returns filed in the next year for the 2001 tax year (though they were generated by temporary tax cuts). One would assume that the proposed stimulus package of 2008 will work the same.

² $405 billion divided by an estimated 147 million wage earners.

³ Rather than spending your rebate you could instead donate it to the campaign of the only major party candidate running for president who supports sound long-term economic policies (just don’t tell him where you got the money).

To one Iowan who favors Arizona Governor Bill Richardson, it looks like Barack Obama or John Edwards may be the lesser of three evils (Hillary Clinton being the third). The excerpt below comes from a piece on NPR this morning, Iowa Caucuses Do or Die for Some Democrats, by David Greene:

As one of the candidates with lower poll numbers, Richardson’s best hope for doing well in the caucuses may be winning over people like Tony Ross. [...] Ross tells Richardson he’s worried about Hillary Clinton getting the nomination because he thinks she may lose to a Republican.

“So my biggest fear going to caucus for Richardson is that I would drain support from someone else,” Ross says.

Richardson has no easy answer. He says that if he gets the nomination, he could beat a Republican.

Afterwards, when asked if he plans to caucus for Richardson, Ross says he is unsure. Richardson is hands down his favorite, he says. Still, Ross does not know if Richardson will have the resources to stay in the race in the long term.

“I’m afraid if I throw my support to him and he does not get enough bounce out of Iowa, it drains support from Edwards and Obama, and Mrs. Clinton comes out as the eventual nominee. That just worries me,” Ross says.

This just kills me. Seriously. You should have seen heard me screaming in the shower. This mindset would be easier to stomach were it not for the fact that I have listened to this same “wasted vote myth” be repeated over and over again this election season. If ever there were a time to cast a vote for the person you really wanted to support, would it not be now when the major parties have yet to select their candidate? Wake up America! Stop listening to the pundits, the pollsters and playing into the self-fulfilling prophecies and simply vote your conscience!

In a Recent Zogby Blind Poll: “32.8 percent chose the description matching Ron Paul, while just 18.6 percent chose the description matching Rudy Giuliani.”