Financial

Don't count this as a dislike of any particular presidential candidate, but I'm not a big fan of 'tax rebate' checks. In 2003, Congress approved the Jobs and Growth Tax Reconciliation Act which authorized the increase in the child tax credit from $600 to $1000, and a $300 check to taxpayers in the form of a rebate. This time around, as the economy falters, ideas are being recirculated that tax rebate checks are the ticket to ending the working poor's economic suffering.

Government spending helped us get through the Depression, so why can't it help to pull us through this little downturn? The idea is that by handing consumers some free cash, they will go out and buy products (like a new Zune) or put it towards the purchase of a larger item. This creates demand for products, which gets producers producing, and gets the economy moving again.

The 800 pound gorilla in the room is this sense that stagflation is rearing its ugly head once again. When prices are rising, and growth is faltering, handing consumers free money may have the undesired effect of stoking inflation and further eroding the purchasing power of the working poor and middle class. There is also the high probability that instead of using the checks to buy goods and services, many consumers will use them instead to make a payment toward their delinquent loans and credit cards. For many are in over their heads and, barring a miracle, this will only prolong the current housing downturn.

I'm not saying that I will turn down a $250 check from Uncle Sam. I just think the money could be better spent in the form of increased funding of higher education or encouraging the growth of small businesses.