The Finch Formerly Known As Gold

26 January 2008

A better stimulus package?

It will never fly — people who've never saved a dime wouldn't get a cent — but I like the sound of it. As posted by John Ellis:

It's the brainchild of one Leonard Yablon, my neighbor and friend and the former CFO of Forbes. And it goes like this:
  1. Allow individual 401K withdrawals of $12,000 for the next 100 days.
  2. Individual withdrawals up to $12,000 will be tax free.
  3. The result should be an immediate infusion of $120-180 billion into the economy.
  4. Which should stabilize the markets.

Before you ask: yes, I could do that. I'm loath to screw with retirement income, generally, but I figure the bulk of it is going to end up in my estate anyway.

Mickey Kaus calls it "exceptionally Republican ... but exceptionally fast."

Posted at 9:22 AM to Common Cents , Political Science Fiction

I think, were that actually instituted, it wouldn't fly for another reason - I would guess that most people who've saved at least $12K for retirement would be loath to spend it on whatever short-term crap the stimulus package is "supposed" to get us to spend on.

I have to admit pretty strong objections to any kind of "Let's throw money at them and watch them go out and spend it" bread-and-circuses type of "stimulus" package.

Posted by: fillyjonk at 1:47 PM on 26 January 2008

I plan to foil them anyway: whatever I get out of these schemes will be going to debt reduction. (Call it paying for previous short-term crap.)

Posted by: CGHill at 3:12 PM on 26 January 2008

I also plan to use whatever I get for debt reduction. Once the debt is paid off, I'll use the money that went toward debt payments to buy short-term crap.

Posted by: Scooby214 at 5:11 PM on 26 January 2008

If such shenanigans become the norm every election cycle it'd go a long way towards upgrading my big screen TV's every 4 years and I'm all for it. Hey; every now and again old guys without debt get the urge to spend and leave a little less for the estate too. Especially if Uncle Sugar is footing the bill.

Posted by: fits at 3:08 AM on 29 January 2008