Globe's Syre takes on stimulus

And elements in net but I don't I don't think you give banner says he's -- hot. I don't think you give him the benefit of any doubt whatsoever and I give them all the -- tell them across novel art. It looks as if he and the lieutenant governor -- yet to moderate Jamie Murray could hold little Timmy in my room was a good guy from was up. And that this setting up a system so the public can monitor the decisions that are going to be made. The new guy that they're going to appoint to oversee this federal stimulus money Jeffrey Simon private sector guys. He says look you've got to be realistic for every project we decide to do he'll be twenty that we can't do it is a limitation of this. So nobody should think this is going to solve each and every problem. But it's because there's something -- about me though I'm actually rattling the difficulty of the -- going to have because he's actually going to have to sign yes there is something statistic about that he's going to have to make his decision about which projects get done which means he'll be making people -- happened happened and I think this is a -- lives to please -- yeah well as opposed to lead -- he doesn't -- to -- he lives to -- I ever thought about leadership as a lonely position it's it's a lovely place it really is give us -- on whether it's hot hot -- loneliness. Leadership is such a leader -- has thing hand you have to have the courage to be lonely and politics it's -- it's an odd dynamic because. Politicians. Like to be liked yesterday's seek pop crap already they -- be desperate need to be about this -- know this -- if -- Bill Clinton like a lot well may -- he may be real somebody like -- that Ukraine so -- used as a government or politics because he loved how the throngs would surrounding -- says the Filene's basement he's got Chirac opt out -- Lauded as I believe. --

Don't mind wait waiting whatsoever I'm feeling good today I -- eight -- all my. What do you do with your money Steve. And -- I can't believe this that what you're on the -- this second and I want. Wanted to know why don't all the stories talk about thirteen dollars that we liked it becomes the same as your caller that they are.

I think they're -- family. The family gets twice as much and and maybe they're getting thirteen -- sixty. You know it may be in federal government math. -- I don't know would say you're impressed with this. It's it's kind of shocking to me and I'm wondering how I'm missing some I'm lookin' at 800 billion dollars for this package. 300 billion of which which the top my -- is 40%. 300 billion of this is wasted. Tax rebates at the tip to the tune of eight dollars a week which are invisible won't be stimulant -- Romero right -- Morency.

Well I think that it it will be kind of invisible but I do think the money ultimately get inspected will be the big. You know big jolt and they don't -- somebody's tax cuts -- personal they're also business tax cuts which. You know summer okay there are some two for bigger businesses to give them a tax break on. Putting money into their plant -- equipment hopefully buying things that's okay. But a lot of them are are sort of helping businesses -- you know you know write down some of their investments that lost money York that they have to restructure because they're in trouble you know. These are all this. You know nice goals but they're not speculative in -- in to some degree I think the corporate tax cuts don't stimulate that much either.

The Alternative Minimum Tax we're told is in there that's a good thing and it yeah around him that's going to present prevent the upper middle class folks from being automatically. Kicked up into a higher Mora and respiratory rate. That's good news that all the money isn't being wasted and.

Well no I think that's what you'll get spent I think Bosnia -- will get spent.

It'll get spent but not in a way that stimulates the economy. Right how does -- its economy and if every American buys another candy bar this week we want the buying refrigerators.

Well if it's got millions of people spending their eight box that does make. The difference you don't have dispute necessarily be buying you know 800000. Dollar pieces of equipment to make it their.

It is not true Steve that when people get smaller amounts of money those get melded into their normal -- pain so the eight dollars being such a small number most people won't even know that their paycheck has gone up by that amount and -- write their checks and pay their bills that doesn't make new spending happen.

Well if it it rather than having their account go into accounts receivable for a company that's waiting for that payment so -- so bills will be paid or -- will be put into a bank and then had been and it will have. A greater number deposits to lend out artists Layla says it's the -- not this stimulant of dispute or running out to buy something. Yes or not.

But in the admitted. You know whether it's paying a bill or anything could give them money is spent it's spent.

It's circulating that's exactly right any idea -- not wait wait wait a second nuts mentally all local banker is landing he would know the banks have plenty of money the one who says so. It's it's right I've been listening all these podcasts from economists and stuff as a matter of fact bank lending his -- down that much it's the landing coming out of Wall Street that's different. So I I I can't. I can't imagine that you guys are right about this if you give. Everybody a gift should view certificate for 15000 -- off on a car. You're telling me that wouldn't be more. Of a stimulant and have more stimulative effect then and then people paying a bill that may be is six months old already.

But attacked in April 2 weeks now I've been making the point that that. The best way if you use taxes to get a stimulating effect is to give people credits for -- of the I wish there was a -- this 400 or 500 bucks a person. And just you know send them a government you know gift card for 500 -- and here he -- 500 bucks but he got to spend.

Yeah yes. Not pay bills that are already there are now why are you saying that's better why is it better they buys something that if they pay a four month old bill.

Doubled and are gonna pay a four month old well I think what is -- gonna. You know cloak around in their in their bank account they're gonna say that it's going to be. Some marginal amount of money that that people can probably for -- I mean it but it is it is these that natural instinct for people write about it. To save money when they cast.

You saw the crowd well I'll tell you why I'm gonna give you some more crappy just start about a 15000. Tax credit a tax incentive to go out by an automobile. And that is literally like taken steroids for two DM days of the automobile industry gets a surge of what is that can't possibly fill the ball in the next two days. They -- put on a couple of ships for a couple months and then everybody -- the -- every time lines -- that mean that nobody's -- go out by cap for the next -- and you and I really kinda got a brand -- drives I -- however you want to time you can control the number of people but at least you're stimulating the -- half an -- half an hour ago you said -- would not want any of the provisions of this act to survive more than eighteen months -- you can close -- team -- just -- given time that any way you want to time at the latest.

Plus -- silly number like 15000 what was -- for 500 that they that you're just got a card -- go out and spent in any way you want to do it and we and we distribute these cards over three or four months everybody.

and I like that because it would be spread more broadly to people -- the cut you know use it as a down payment on a cut. Now this my two washing machine others might go out to the -- did go back there it's the same patterns are dining out for a couple weeks I'm Lamar is the key is your -- forcing people to spend the money now and we know that the trouble with the with these tax rebates or tax discounts. Is that all it does become part of people's normal cash -- either they spend it on bills or they say that neither of which have a major stimulant effect right.

the real problem with. With the tax credit is for something like a car is that in the end you can't end up having. Tax. Credit program were -- Incident incentive program. We're basically you're forcing people to spend a lot of money so ultimately a large part of the taxpaying population has no opportunity or. Realistic opportunity take advantage of it and you know a small group of people are making a lot of dough out of one other people are footing the bill -- the.

Hi I'm just sorrow hypotheticals. For ways to target the money so it's very effective she could have won for the car manufactures you have one for washing -- you can divide it up anyway you want hurried into -- like you're you're suggesting. For any consumable product here is -- you know gift certificate for X number dollars. The point is you don't want money that people can do whatever they want with including putting into a savings account because we're just.

Won't last. Year. I mean you could say well was more money you know depending on your circumstances it was six to 800 dollars maybe a little bit more. And some people go buy things with it did have some effect but a lot of people. Paid -- a good thing but not stimulating. They saved it in you know you real right I agree with the -- percent that that's. In my my tax issue from day one is -- to waited two uses a credit for people go out and buy things.

Steve's iron wire bonding you know assist this in a -- and Steve how about the in the final outcome as I understand it about one half of what had been proposed in the house aide to the states. About one half of that is going to be contained in the bill that's still pretty good dead jolts for for them for a message. Out.

Our latest set don't you think of balls already spent the prior number in his mind and he's free content they call the White House. -- hot -- yes let his worst we are seeing. John and architects have to the woodshed today in the gas tax Steve I don't know conceded yet. It's a good comments like -- she gives them a big slap upside the heads of trying to make a decision.

Kind of the -- the opening lines remind me of a while it was a John Kerry rehash it was a first it was for the gas tax before he was against it now is not show with reach far and are against that it was it was a tough opening at a pretty a pretty rigorous --

Jones office yesterday morning -- start and that was what she was gonna do. And she had this list of all the different things to bop its head over by.

It's that if she she runs through the timeline in in the column of all is different comments it's very -- I think -- getting impatient with the governor. Her closing line is when it comes to gas tax hike at the time for hedging is over it is time to lead which means I guess we need to impeached of all I get ourselves governor. -- you just decide to leave it where we gotta find somebody that you know I get a kick out you this bill by the way that would imply -- I like -- using their. So the video of this stimulus bill has about 500 billion dollars in spending. About a third of it is. Tax cuts as well you're gonna get infrastructure out of beginning -- Alternative Minimum Tax. You seem to be that type of person who lets you. You know your legislature this get in the way of my volunteer your insistence on the perfectly getting in the way of something that is overall positive and overall good there's no such as propulsion does that planning something distinct periods that -- sinuous won't as a metric sockets does not -- size I don't use that.

I think that I think the laws of gravity you've got upside down in the studio -- is objecting to a tax cut he's spending a lot of time quoting Jones columns yeah and it agreeing with me.

I taught at W stricken heavily -- that is all the beautiful people are greatly mates did I desire. Nice to have here once again she's I have a lot of -- and.