With all the news about the stimulus package, one thing no one has brought up is the theory of this package. It is taken from the 1930s by an economist named Cain and was the theory used for many years until the late 1970s or early 1980s recession.
Guess what? It did not work then and will probably not work now.
A better solution would have been to give the money to the public in vouchers that could only be used to pay off home loans, credit cards or bank debts. Bad loans now would become good loans for banks and they'd get their money and we'd have more money to spend on other things to stimulate the economy.
This could start with people with lower incomes and increase to the $250,000-a-year-earners.
Russ Nieland
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Duluth
