
We recently ended the great experiment popularly called Cash for Clunkers.
For those of you unfamiliar with the process, below are the basic provisions.
1. You own an old piece of crap car that gets bad gas mileage.
2. You want a new car that gets good gas mileage.
3. A couple thousand dollar subsidy by Uncle Sam will prompt you to make that new car purchase.
Evidently the program has had some success – automobile salvage workers and Asian car manufacturers have especially benefited.
I briefly considered the program, but decided against it for the basic reasons below.
1. My old piece of crap car that gets bad gas mileage runs just fine.
2. I don’t want a new car.
3. Even with a government subsidy, you still are taking on many thousands of dollars in consumer debt. (Many > couple).
Anyway, I’ve been thinking of other ways to use the tremendous power of the federal government to tax and spend on behalf of THE PUBLIC GOOD.
In the first installment of a two-part post, I’ll spin out some ways that the federal government can stimulate the economy, mostly in the same vein as Cash for Clunkers.
In other words, prompt people to buy stuff or do things that have a positive impact on the national gross national product.
In the second installment of this post, I’ll give some ways that the federal government can make itself money to close our national deficit.
(I know, crazy thought that Chinese banks will one day refuse to keep buying our debt, but consider this a thought experiment).
1. Forgive Student DebtI’ll let
others make a more elegant case for forgiving student debt than me.
Nutshell case – less loan payments, more consumer spending, better economy, WIN.
Here’s where I’m on board: this is an issue that young people, by and large, can get on board with and care about.
Politicians have governed for too long ignoring 20-somethings, and with good reason.
We don’t
vote.
Wide-scale student debt forgiveness may have only a marginal effect in stimulating the economy, but agitation for this policy could have larger implications.
More civic participation from America’s future working class will lead to better government.
For instance, picture a world where more kids have master’s degrees and we build less F-22s Raptors (no matter how badass they are).
Wouldn't you rather live in that world? I would.
Ok, enough faux-seriousness – this is a blog, not reality.
2. Health Care MakeoverYeah, I’m not touching this.
Some right-wing nut job will break into my apartment and shoot me in the leg with a MAC-10.
3. Bills for B*****s and Money for MarriageDivorce is expensive.
Those going through divorce have to pay for lawyers to haggle over who gets the junk the couple has accumulated before and during marriage.
Probably one or both folks hire some private investigators to get dirt on their former better-half.
Costly counseling ensues after the divorce.
And if kids are involved, the arms race of present giving at Christmas and birthdays kicks.
Sounds like just the right environment for a couple on the cliff of marriage to get a little push into the abyss of divorce – for the sake of the economy of course.
Here’s the other half – marriage is also expensive.
The cost of a wedding is huge (flowers, photographers, cakes, dresses), not just to the parties and their immediate families who pay the bill.
Out of town guests have to purchase plane tickets and rent cars for the weekend.
Toss in hotel bills and a gift or two and everyone’s wallets feel a little lighter by Sunday morning.
Even lawyers get a piece (!) – houses get sold and the smart ones get prenuptial agreements.
So here’s the plan: give a tax break for every year a person’s marital status changes from the year before.
4. Gay Marriage GaloreAlong the same vein as above, gay people have bank accounts and income too.
Why should Breeders be the only ones spending money on marriage and divorce?
Frankly, its pretty unfair that if (when?) I develop a crippling gambling addiction that forces my spouse to divorce me, I have to pay out of the nose in spousal support and alimony while a gay man in the same situation walks away with his Gucci man purse, his Vespa, AND the decorative sconces from Saks.
UVA Law Blog readers, your new Republican party slogan – “You can listen to Fred Phelps (“
Gods Hates Fags” guy) or you can have a robust economy.”
Check back tomorrow for ways the government can make money (or at least close the national deficit).