My Thoughts on The Economic Stimulus Program

I was reading an article this week criticizing the economic stimulus program the government is in the process of passing. In the article, the author stated that capitalism meant some people get rich and some people lose money and the government should stay out of it. In theory, this is true. However, our government has always been involved in manipulating our economy in one way or another. So as far as I'm concerned, this is just more of the same. Personally I feel that any return of tax money to the citizens of the United States is a good thing. I also think it is a good thing to provide incentives to businesses to create more jobs. By creating more jobs the tax base is increased allowing the government to take in more revenue without additional taxes. In the end, I'm sure we'll end up giving this money all back to the government. With the Democrats in control of Congress and with their having a good chance of taking the presidential election, I wouldn't be surprised if we're not hit with a big tax increase in 2009 (remember the retroactive tax increase in Bill Clinton's first term).

As for the person who wrote the article being so indignant about government interference in a capitalist economy, I happen to know quite a few "self made" capitalists. What I've discovered during my association with these people is that every one of them had some kind of outside help, either from family, friends or inheritances, to get to where they are today. So why begrudge anyone a little boost in the form of a tax rebate. I know the extra money I'll be getting back is less than the amount I paid in federal taxes this past year and I'm sure this is true in most cases.

When all is said and done, I think this will be a good thing for the economy, at least in the short term and I believe it will be good for the stock market. Especially given the Federal Reserves willingness to adjust interest rates to help boost the economy.